Infineon Plans to Invest €1.1 Billion to Expand GaN Chip Capacity in Austria

en.Wedoany.com Reported - On October 27, German semiconductor manufacturer Infineon announced plans to invest approximately €1.1 billion at its Villach production site in Austria to build the world's first large-scale 300mm wafer gallium nitride (GaN) power semiconductor manufacturing facility. The investment will continue through 2034, with production expected to begin by the end of 2027. The project will upgrade existing cleanroom and supporting infrastructure, focusing on expanding GaN power device manufacturing capacity, with subsequent capacity ramp-up to be advanced in line with market demand.

Infineon will carry out technical renovation of the existing cleanroom at the Villach plant, deploying 300mm GaN production processes by reusing existing facilities and upgrading manufacturing infrastructure. The company successfully completed 300mm GaN wafer processing validation in 2024, and this investment will advance the related processes to large-scale manufacturing. According to data provided by Infineon, a single 300mm wafer yields approximately 2.3 times as many chips as a 200mm wafer.

The project has received support from Austrian public funding. The European Commission has approved €319 million in state aid from Austria for the project under the European Chips Act. The funds will support the upgrade of production facilities in Villach and the development of advanced power semiconductor manufacturing capabilities, and the related investment will also cover technical collaboration with local universities, research institutions, and industry partners.

Villach is Infineon's main power semiconductor R&D and manufacturing base in Austria, currently employing approximately 4,800 people. The new 300mm GaN manufacturing capacity will be combined with local power electronics R&D operations, with products targeting applications including AI data centers, power infrastructure, electric vehicles, robotics, and consumer electronics. Infineon plans to schedule subsequent capacity increases based on customer demand.