FRANKFURT (AP) -- German technology company Infineon Technologies AG said Tuesday it would expand a Hungarian production facility which makes components for solar and wind power systems, as a result of strong demand for the products.
The Neubiberg-based company said it would spend euro17 million ($22 million) on buildings and machinery for the project in Cegled, Hungary. The Hungarian Ministry of Economic Affairs would provide euro1.4 billion in funding.
The project is to be completed in 2012.
"Greater efficiency in the utilization of energy will become tomorrow's most important energy resource, and Infineon chips and modules play a valuable role in minimizing power loss and maximizing power savings," said Reinhard Ploss, an Infineon board member responsible for operations, in a statement.
"Expanding our Cegled site, where we assemble and test power modules, is an important investment in the future, and the backing we receive from Hungary's Ministry of Economic Affairs underscores Cegled's importance as a semiconductor manufacturing location for the Hungarian government," Ploss said.
The Cegled plant primarily produces standard power modules, which are key components used in wind turbines and solar inverters for photovoltaic systems, as well as in locomotive drives, streetcars, manufacturing plants, escalators and elevators.
Shares of Infineon were down 7 percent at euro0.80 in Frankfurt morning trading.