June 15, 2004 – Infineon Technologies AG is set to open its newly expanded memory chip assembly and test facility in Porto, Portugal. The company is investing 230 million euro (about $277 million) in a second module at the site; work began in late 2003, with full capacity of 600 million chips/year expected by mid-2006, double the current capacity and accommodating roughly 35%-40% of the company’s global memory chip production.

In March of this year the European Union approved 41.5 million euro (about $50 million) in aid for the expansion. In total, Infineon has spent about 560 million euro ($675 million) in the two modules at the site since 1996.