German semiconductor manufacturer Infineon Technologies laid the cornerstone of a HUF 32 billion expansion at its base in Cegléd (central Hungary) on Monday, state news wire MTI reported. The expansion will create 275 jobs.
Hungaryʼs government is supporting the investment with a HUF 6.4 bln grant, Minister of Foreign Affairs and Trade Péter Szijjártó said at the ceremony.
Production at the plant will start at the end of 2021, with the headcount at the base in Cegléd set to climb close to 1,600. As reported in May, Infineon is creating a plant in Cegléd in which semiconductors will be manufactured for the inverters used in electric and hybrid vehicles.
Szijjártó was cited by official government website kormany.hu as saying that the success of the Hungarian economy depends on to what extent the investments of the new automotive industry era that is built on electromobility arrive in Hungary, adding that it is evident that more and more major automotive industry companies are choosing Hungary as their investment destination.
Infineon Technologiesʼ local unit had net revenue of HUF 13.1 bln in its 2017/18 business year, which ended on September 30, 2018, while after-tax profit amounted to HUF 287 million.