German chip maker Infineon Technologies is expanding capacity at its plant near Budapest in a €17 million project, National Development and Economy Minister Gordon Bajnai said on Tuesday.
The expansion will create 250 new jobs by 2012, Bajnai said.
Infineon deputy-chairman Jorg Spiegel said the investment is Infineon’s fourth in Hungary, which shows the company is in the country for the long term. Infineon picked Hungary for the expansion because of its trained and motivated work force as well as the country’s geographical location, he added.
Infineon has already completed €5 million of the investment, creating 50 new workplaces, Spiegel said, answering a question. Infineon started the project in June 2008 and will start production in a new hall in April 2009. Capacity will be expanded in the new hall gradually until 2012.
The government will announce the size of the subsidy it awarded Infineon for the investment after the subsidy is approved by Brussels, Bajnai said.
Infineon’s plant in Hungary makes standard power modules used in wind turbines and solar inverters for photovoltaic systems, as well as in locomotive drives, streetcars, manufacturing systems, escalators and elevators. (MTI-Econews)