Infineon Invests $1.23 Billion in Austria for First 300 mm Gallium Nitride Volume Production by 2027

Infineon Technologies AG will pour approximately USD 1.23 billion into its existing cleanroom facilities at Villach in Austria by 2034, turning the location into a global competence center for power semiconductors.

The German-Austrian company announced the plan from Munich, Germany, and Vienna, Austria, on 27 October 2026, stating that production is scheduled to start by the end of 2027, with the ramp-up aligned to market demand.

Europe's First 300-Millimeter GaN Manufacturing Facility

According to the company, the investment will establish the world's first high-volume manufacturing facility for next-generation gallium nitride (GaN) power semiconductors on 300-millimeter wafers in Europe.

Because the expansion draws on both the existing and upgraded infrastructure at Villach, Infineon says the increase in manufacturing capacity will be highly efficient and cost-effective.

Public Money Under the European Chips Act

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

The investment is aimed at meeting rapidly growing demand for high-performance power supply solutions, with gallium nitride enabling significant efficiency gains in applications that include AI data centers, energy infrastructure, e-mobility, robotics and consumer electronics.

From Wafer Milestone to Volume Manufacturing

Infineon describes itself as a leader in gallium nitride power electronics. Two years ago, the company 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. The Villach investment now transfers this technology into the world's first high-volume manufacturing facility serving customers.

Hanebeck Ties Investment to European Ecosystem

Jochen Hanebeck, CEO of Infineon Technologies AG, framed the spending 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," he 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."

Hanebeck 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.

Vienna Hails One of Austria's Largest High-Tech Investments

Christian Stocker, Federal Chancellor of the Republic of Austria, welcomed the announcement, characterizing 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.

In his view, 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. He argued 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.

Commercialization of GaN Advances at Villach

With the investment, Infineon intends to become the first manufacturer worldwide to bring GaN power electronics into volume production on 300-millimeter wafers, positioning the technology as central to improving energy efficiency across a range of applications.

Production at the Villach facility is set to begin by the end of 2027.