Infineon to establish the world’s first high-volume manufacturing facility for gallium nitride power semiconductors on 300-millimeter wafers in Europe
Infineon Technologies AG has announced plans to establish the world's first high-volume manufacturing facility for gallium nitride (GaN) power semiconductors on 300-millimeter wafers. The facility will be developed at the company’s existing site in Villach, Austria, supported by an investment of approximately €1.1 billion through 2034.
The project represents a major milestone in semiconductor manufacturing and reinforces both Europe’s technological sovereignty and Infineon’s leadership in power electronics. Production is expected to commence by the end of 2027.
The investment comes as demand continues to rise for high-performance power semiconductor solutions across sectors including artificial intelligence, energy infrastructure, electric mobility, robotics, and consumer electronics.
GaN technology enables significantly greater power efficiency than conventional semiconductor materials. Its superior switching performance helps reduce energy losses, generate less heat, and support the development of smaller, more powerful electronic systems.
Advancing GaN Manufacturing at Scale
Infineon has been at the forefront of GaN innovation, achieving a key breakthrough in 2024 by successfully processing the world’s first 300mm GaN wafers. Compared with traditional 200mm wafers, the larger format delivers approximately 2.3 times more chips per wafer, increasing manufacturing efficiency while lowering production costs.
The Villach facility will be the first production site worldwide to bring this technology into high-volume manufacturing for commercial customers.
“We are strengthening the European semiconductor ecosystem while taking gallium nitride power electronics into mass production for the first time,” said Jochen Hanebeck, CEO of Infineon Technologies AG. “This investment will accelerate the adoption of GaN technology across strategic growth markets, delivering direct benefits to customers through enhanced performance and efficiency.”
Strong Support from Austria and Europe
Austrian Chancellor Christian Stocker described the project as one of the largest investments ever made in Austria’s high-tech sector, highlighting its importance for European competitiveness, industrial resilience, and future economic growth.
The project is being supported under the European Chips Act, with the European Commission approving €319 million in state aid. Formal funding approval from the Austrian Federal Ministry for Economic Affairs, Energy and Tourism is expected in line with the required procedures.
According to Austrian Federal Minister for Economic Affairs Wolfgang Hattmannsdorfer, strengthening semiconductor manufacturing in Europe is essential to maintaining competitiveness and securing future growth. He noted that every job created within the semiconductor industry can generate significant employment opportunities across the wider economy.
Strengthening Europe’s Semiconductor Ecosystem
The investment further establishes Villach as a global center of excellence for power electronics and advanced semiconductor materials. Infineon Austria currently employs around 5,800 people, including approximately 4,800 employees at the Villach site.
Working closely with universities, research institutions, start-ups, and industry partners, Infineon plays a central role in Austria’s internationally recognized microelectronics ecosystem. The new manufacturing facility is expected to create additional synergies with the company’s existing research and development activities in power electronics.
“Competitiveness and technological sovereignty are achieved when outstanding research is transformed into industrial value creation,” said Sabine Herlitschka, CEO of Infineon Technologies Austria AG. “This project converts innovation into large-scale manufacturing, secures highly skilled jobs, and strengthens Europe’s strategic position in microelectronics.”
A Fast-Growing Market Opportunity
Industry analysts expect the global market for GaN power semiconductors to reach approximately USD 3.5 billion by 2031, representing annual growth of around 35% between 2025 and 2031. As adoption accelerates across AI infrastructure, renewable energy systems, and electric transportation, GaN is expected to play a critical role in enabling more efficient and sustainable technologies.
With this investment, Infineon is positioning itself at the forefront of next-generation semiconductor manufacturing while helping to secure Europe’s long-term competitiveness in advanced electronics.
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