GlobalFoundries (GFS) will receive 495 million euros ($579.8 million) in German state aid to support the construction of a semiconductor manufacturing facility in Dresden, the European Commission said in a statement Thursday.

The EC, which approved the grant, said that under the project, GlobalFoundries will build new 300 mm wafer manufacturing capacity by expanding its existing site in Dresden.

The technologies produced at the facility will be developed under the IPCEI Microelectronics & Communication Technologies project, a joint initiative involving 14 EC member countries, but will be adapted for dual-use purposes, targeting aerospace, defence, and critical infrastructure markets, the EC said.

The EC said it has also approved a 128 million euros German state grant for X-FAB to build a new open foundry facility at its existing site in Erfurt.