Infineon Technologies AG has announced plans to establish the world's first high-volume manufacturing facility for next-generation gallium nitride (GaN) power semiconductors on 300-millimeter wafers in Europe.

Villach Site Receives USD 1.23 Billion Investment

The German-Austrian company will invest around USD 1.23 billion in its existing cleanroom facilities at the Villach site in Austria by 2034, positioning the location as a global competence center for power semiconductors.

Production is scheduled to start by the end of 2027, with the ramp-up aligned with market demand. The announcement was made from Munich, Germany, and Vienna, Austria, on 27 October 2026.

Meeting Demand for Energy-Efficient Chips

Infineon's investment is aimed at addressing rapidly growing demand for high-performance power supply solutions. According to the company, gallium nitride enables significant efficiency gains in numerous applications, including AI data centers, energy infrastructure, e-mobility, robotics, and consumer electronics.

The project also carries a broader policy dimension: USD 356 million in funding is being provided under the European Chips Act to strengthen Europe's technological sovereignty.

Building on a 300-Millimeter Milestone

The company describes itself as a leader in gallium nitride power electronics. Two years ago, Infineon achieved what it calls a technological milestone by successfully processing the world's first 300-millimeter gallium nitride wafers.

Chip production on 300-millimeter wafers is more advanced and significantly more efficient than 200-millimeter wafer production, since the larger wafer diameter yields 2.3 times as many chips per wafer.

Infineon is now transferring this technology into the world's first high-volume manufacturing facility serving customers. By leveraging both the existing and upgraded infrastructure at Villach, the company says the expansion of manufacturing capacity will be highly efficient and cost-effective.

Leadership Commentary

Jochen Hanebeck, CEO of Infineon Technologies AG, framed the investment as a commitment to the European semiconductor ecosystem. "This substantial investment shows our clear commitment to strengthening the European semiconductor ecosystem and Europe's technological sovereignty," Hanebeck said.

"By establishing high-volume manufacturing on 300-millimeter wafers, we will be the first company in the world to bring gallium nitride power electronics into volume production."

He added that the company is "paving the way for the widespread use of gallium nitride in a wide range of key applications in areas such as artificial intelligence, energy infrastructure, e-mobility, and robotics," describing the new state-of-the-art manufacturing facility as translating innovation leadership into direct customer benefits.

Austrian Government Welcomes Investment

The announcement drew a statement from Christian Stocker, Federal Chancellor of the Republic of Austria, who characterized the project as one of the largest single investments in the history of Austria's high-tech industry.

"With Infineon's billion-euro investment, we are witnessing one of the largest single investments in the history of Austria's high-tech industry," Stocker said.

He argued that the investment represents not only a strong commitment to Austria as a business location but also helps ensure that the future of the semiconductor industry will not be shaped solely in Asia or the United States but also in Austria and Europe.

Stocker noted that Villach will become home to a globally unique production facility for one of the key technologies that will shape the future. In his view, the project will strengthen Austria's international competitiveness and secure jobs and value creation in the country.

"Austria may not be a country with unlimited natural resources, but it is a country with an unlimited wealth of talent," he said, adding that the country's cutting-edge research sets international standards.

A Landmark for GaN Power Electronics

The Villach project marks a step in the commercialization of gallium nitride power semiconductors, a technology Infineon positions as central to improving energy efficiency across a range of applications.

With the investment, the company intends to become the first manufacturer worldwide to bring GaN power electronics into volume production on 300-millimeter wafers, with production at the Villach facility set to begin by the end of 2027.

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