BERLIN, June 4 (Reuters) - U.S. chipmaker

Globalfoundries ( GFS ) plans to invest around 1.1 billion euros ($1.25

billion) in the eastern German city of Dresden, Handles daily

reported on Wednesday, citing sector sources.

The German government is expected to support the expansion

of its production site with several hundred million euros, the

newspaper said, adding the final figure had not been agreed.

Globalfoundries ( GFS ) did not immediately reply to an emailed

request for comment.

($1 = 0.8787 euros)

(Writing by Madeline Chambers, editing by Kirsti Knolle)