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EU To OK EUR72 Million Portugal Aid For Infineon Plant-Sources-2
It is the second time this year E.U. regulators have approved Portuguese aid to Europe's second-largest semiconductor maker.

In March, the E.U. gave the green light for EUR41.5 million in Portuguese aid for Infineon to expand its production facilities in Vilo do Conde, northern Portugal.

The subsidy watchdogs at first opposed that amount, saying there already were too many chips on the market. But the E.U. later approved the grant after deciding that South Korean chipmaker Hynix Semiconductor (000660.SE) was subsidizing cheap exports to Europe and flooding the market unfairly.

Infineon will use Wednesday's expected approval of a further EUR72 million to expand chip assembly and test facilities at Vilo do Conde.

The investment is worth EUR230 million in total, said Infineon spokesman Ralf Heinrich.

-By James Kanter, Dow Jones Newswires; 322-285-0136; james.kanter@dowjones.com

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