Infineon Invests €1.1 Billion in Austrian GaN Semiconductor Plant

Infineon Technologies will invest approximately €1.1 billion by 2034 to establish high-volume production of gallium nitride (GaN) power semiconductors on 300mm wafers. The facility, located at the company's site in Villach, Austria, is scheduled to begin production by the end of 2027 and will be the first high-volume GaN fab of its kind globally.

The project utilizes existing cleanroom facilities to expand capacity for AI data centers, e-mobility, robotics, and energy infrastructure. By transitioning to 300mm wafers, the company can produce 2.3 times more chips per wafer than with 200mm versions, targeting a GaN market projected to reach roughly $3.5 billion by 2031.

Funding for the expansion includes €319 million in state aid approved by the European Commission under the European Chips Act. Additional funding is expected from the Austrian Ministry for Economic Affairs. CEO Jochen Hanebeck stated that the investment demonstrates a commitment to strengthening the European semiconductor ecosystem and technological sovereignty.