Asia Tech Wire (June 17) -- German semiconductor maker Infineon Technologies AG will set up a research and development center in Taiwan, expanding its investment on the island.

Infineon on Monday announced an investment plan of up to NT$1.2 billion (US$37 million), including upgrading its existing wireless communications R&D lab in Taiwan to establish the Infineon Advanced Automotive & Wireless Communications Semiconductor R&D Center.

According to Infineon, the establishment of the R&D center has gained the support of Taiwan's Ministry of Economic Affairs, which will receive NT$480 million (US$15 million) in government subsidies.

The ministry said this is the first time a European chipmaker has set up such an R&D center in Taiwan.

Infineon's new investment means the transfer of next-generation automotive Bluetooth chip technology to Taiwan for R&D and production.

(US$1=NT$32.4653)