EC probe approves Infineon Porto aid package
The money comes in the form of a loan to be partially transformed into a non-reimbursable grant and of an income tax exemption for profits deriving from the notified investment.
The aid authorised amounts to EUR41.5mn. This corresponds to 29.4% of the overall investment costs. Vila do Conde is an assisted area under the EC Treaty. The maximum allowable aid intensity for large undertakings in this region is 32% net.
Portugal authorities say that the investment created 252 new jobs and safeguarded 596 existing jobs (the full pre-investment workforce of the company) and 30 indirect jobs in the region.
The EC launched the probe into the investment in July 2003 (Bulletin 490, July 10, 2003). The project was launched in June 2000 and completed in September 2003. As a consequence of the investment, total output increased from 2mn to 5mn chips per week.
