INFINEON INVESTS €1.1 BILLION IN VILLACH: A MILESTONE FOR EUROPEAN CHIP PRODUCTION
Villach is strengthening its position as an international semiconductor hub. Infineon Technologies AG has announced an investment of around €1.1 billion in its Villach site to establish Europe's first high-volume manufacturing facility for gallium nitride (GaN) power semiconductors on 300-millimeter wafers. Production is scheduled to start by the end of 2027.
The investment will expand the site's existing cleanroom infrastructure and support growing demand for energy-efficient chips used in applications ranging from AI data centers and energy infrastructure to electric mobility and robotics.
WHY GALLIUM NITRIDE MATTERS
Gallium nitride (GaN) is a semiconductor material that helps electronic devices use electricity more efficiently, reducing energy loss and heat. This makes it particularly useful for technologies such as AI data centers, electric vehicles and renewable energy systems.
In 2024, Infineon successfully processed the world's first 300-millimeter GaN wafers. These larger wafers can produce approximately 2.3 times as many chips as conventional 200-millimeter wafers, making manufacturing more efficient. The new facility in Villach will bring this technology into high-volume production, with output increasing in line with market demand.
STRENGTHENING EUROPE’S SEMICONDUCTOR INDUSTRY
The project has received €319 million in approved state aid under the European Chips Act, which aims to strengthen Europe's semiconductor industry and technological independence. Austria's Federal Ministry for Economic Affairs, Energy and Tourism is expected to make the formal funding commitment within the stipulated time limits.
The investment is also expected to benefit the wider technology ecosystem through collaboration with universities and research institutions, as well as improved access to innovative technologies for start-ups and small and medium-sized enterprises.
WHAT THE INVESTMENT MEANS FOR VILLACH
Infineon Austria employs around 5,800 people, about 4,800 of them at its Villach site. The company is a key part of the region's microelectronics ecosystem, which brings together universities, research institutions, start-ups and industrial partners.
The new manufacturing facility will build on Villach's existing expertise in power electronics and create synergies with local research and development activities. It also reinforces Austria's role in the European semiconductor industry as demand for advanced, energy-efficient chips continues to grow.
With an investment of €1.1 billion and production planned for the end of 2027, Infineon's expansion marks a significant step for Villach as a centre for semiconductor manufacturing, research and innovation.