The Infineon conglomerate, a market-leader among producers and developers of high-performance semi-conductors, expands the existing production capacity at its Hungarian headquarters in Cegléd through an investment project of EUR 65.6 million. This project has been one of the most significant developments of the company in Europe. The contract to provide funding for the development project following a special decision on the part of the Government was signed by Minister for National Economy Mihály Varga and Infineon Deputy President Jörg Spiegel in Budapest. The preliminary phase of decision making and an optimal funding framework have been prepared by the Hungarian Investment and Trade Association.

Prior to the signing of the contract, the Minister for National Economy emphasised that the investment project will introduce the most up-to-date technology within the sector and it will increase the share of products with high added value within Hungary’s industrial production which subsequently boosts exports.

Mihály Varga pointed out that the Government assists investments of competitive enterprises aiming to create jobs which may contribute to output growth within the Hungarian economy. Within the funding system requiring a special decision on part of the Government, negotiations are ongoing with 44 investors. Provided all these project plans are approved, the amount of projected Hungarian investment is expected to total HUF 1000bn and create 19 thousand new jobs.

As Mihály Varga said, Hungary emerged from recession in 2013 and has been back to a growth path. In the opinion of the Minister for National Economy, over the coming years economic growth shall be placed on a stable foundation, therefore investment projects within the most highly developed industrial sectors are essential for future success. The Minister said that Infineon’s innovative technology and more than 17 thousand patents have turned the company, which has been present in Hungary since 1989, into a market-leader regarding the car- and energy chip cards as well as semi-conductors.

Mihály Varga added that Infineon, after the investment project is completed and production is started, plans to increase the number of employees to 1051 until 2018. He also underlined that the company also places a special emphasis on including Hungarian SMEs among suppliers. Infineon Vice President Jörg Spiegel said that this has been the sixth development funding contract the company has signed with regard to the development of the Cegléd site.

Jörg Spiegel stressed that Hungarian business conditions are stable, political and economic partners as well as employees are reliable and the Cegléd production site has been competitive compared to other subsidiaries in the region. Infineon has 11 production sites all over the world, the company’s turnover totalled EUR 4bn last year and the number of employees exceeded 26 thousand, the Vice President said.

(Ministry for National Economy)