BRUSSELS, Feb 20 (Reuters) - The European Commission said on Thursday it had approved a 920 million euro German state aid to Infineon for the construction of a new semiconductor manufacturing plant in Dresden.

The measure will allow Infineon to complete the MEGAFAB-DD project which will be able to produce a wide range of different types of chips, the Commission added.

Chipmakers across the globe are pouring billions of dollars into new plants, as they take advantage of generous subsidies from the United States and the EU to keep the West ahead of China in developing cutting-edge semiconductor technology.

The European Commission has earmarked 15 billion euros for public and private semiconductor 유로247가입 projects by 20

/>"This new manufacturing plant will bring flexible production capacity to the EU and thereby strengthen Europe's security of supply, resilience and technological autonomy in semiconductor technologies, in line with the objectives set out in the European Chips Act," the Commission said in a stateme

/>The Commission said the plant - which will reach full capacity in 2031 - will be a front-end facility, covering wafer processing, testing and separation, adding that its chips will be used in industrial, automotive and consumer applicatio

/>The aid will take the form of a direct grant of up to 920 million euros to Infineon to support its investment amounting to 3.5 billion euros. Infineon has said the plant will be the largest single investment in its histo

/>Infineon has agreed with the EU to ensure the project will bring wider positive effects to the EU semiconductor value chain and invest in the research and development of the next generation of chips in Europe, the Commission sa

/>It will also contribute to crisis preparedness by committing to implement priority-rated orders in the case of a supply shortage in line with the European Chips A

/>(Reporting by Geert De Clercq, Editing by Charlotte Van Campenhout and Shri Navaratnam)