BRUSSELS, Dec 11 (Reuters) - The European Commission on Thursday said it had approved 623 million euros ($729.16 million) in German government aid to support the creation of two new semiconductor manufacturing facilities in Germany.
The aid consists of two grants, worth 495 million euros and 128 million euros, respectively.
The bigger grant will go to GlobalFoundries, a semiconductor foundry specialised in the manufacturing of semiconductor devices exclusively for other companies. The second grant will go to X-FAB, to support construction of a new open foundry facility at its existing site in Erfurt, Germany.
The Commission said in a statement that the measures facilitated the development of economic activities in Europe where the facilities would be first-of-a-kind. It added that the measures would have wider positive effects for the European semiconductor ecosystem. ($1 = 0.8544 euros)

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The European Commission approved 623 million euros in German state aid to support two new semiconductor manufacturing facilities. GlobalFoundries will receive 495 million euros, and X-FAB will get 128 million euros for a new facility in Erfurt. These measures aim to boost economic activities and positively impact the European semiconductor ecosystem.

EU approves German state aid to support chip factories