Infineon Invests €1.1 Billion in 300mm GaN Power Semiconductor Manufacturing in Austria
The Villach expansion targets high-volume production by the end of 2027 to meet growing demand from AI data centres, energy infrastructure, electric vehicles and robotics.
Infineon Technologies has announced an investment of around €1.1 billion at its Villach site in Austria to establish what it describes as the world's first high-volume manufacturing facility for gallium nitride (GaN) power semiconductors on 300mm wafers. High-volume production is scheduled to begin at the end of 2027, with investment continuing through 2034.
The expansion will upgrade infrastructure within existing clean-room space at Villach, which Infineon says makes the project more capital-efficient than a greenfield fab. GaN power devices are used in applications including AI data centres, energy infrastructure, electric vehicles and robotics.
“This substantial investment shows our clear commitment to strengthening the European semiconductor ecosystem and Europe’s technological sovereignty,” said Jochen Hanebeck, CEO of Infineon Technologies AG.
Hanebeck added that by establishing high-volume manufacturing on 300mm wafers, Infineon will become the first company in the world to bring GaN power electronics into volume production.
Infineon first processed 300mm GaN wafers on a pilot line in Villach in 2024. A 300mm wafer yields about 2.3 times as many chips as the 200mm wafers commonly used today.
The European Commission has approved €319 million in state aid for the project under the European Chips Act, with formal approval from Austria's Federal Ministry for Economic Affairs, Energy and Tourism still pending. Infineon employs about 5,800 people in Austria, around 4,800 of them in Villach.
Citing Yole Group's Power GaN 2026 report, Infineon noted that the global GaN power semiconductor market could reach about US$3.5 billion by 2031, growing roughly 35% a year between 2025 and 2031.
