The production will commence by the end of 2027 and will add to Infineon’s cleanroom capacity at Villach, Austria.
Infineon Technologies AG is going to invest $1.22 billion (€1.1 billion) to establish the world’s first high volume Gallium Nitride (GaN) wafer producing facility in Europe. The facility will produce GaN power semiconductors on a 300 millimetre wafer in Austria.
The production will begin by the end of 2027 and will add to Infineon’s cleanroom capacity at Villach, Austria. The project will be supported by the European Chips Act, with the European Commission approving $355 million in state aid and the Austrian Federal Ministry of Economic Affairs, Energy and Tourism expected to provide a formal funding commitment.
The German semiconductor and design manufacturing firm produced the world’s first 300 mm GaN wafers, two years ago. The larger diameter enables the production of 2.3 times more chips than 200 mm wafers. GaN chips provide greater efficiency in applications like AI data centres, energy infrastructure, e-mobility and others.
The investment reinforces European semiconductor ecosystem and technological sovereignty according to Jochen Hanebeck, CEO of Infineon technologies AG. Meanwhile Chancellor, Christian Stocker described the investment as one of the largest in Austria’s high-tech industry history.
Analysts expect the market value for GaN power semiconductors to reach $3.5 billion by 2031, representing an annual growth of 35 percent from 2025 to 2031.
