Infineon to invest 1.1 billion euros in Villach for first 300 mm GaN mass-production plant
The Austrian site is to start volume output of gallium nitride power chips by end-2027, mainly for AI data centers. The European Commission has approved 319 million euros in state aid.
Archive image · Photo: Naturpuur / Wikimedia Commons, CC BY 4.0 (cropped and resized)
German chipmaker Infineon is investing about 1.1 billion euros ($1.23 billion) in its site in Villach, Austria, where it plans to build what it says will be the world's first plant for high-volume production of gallium nitride (GaN) power semiconductors on 300-millimeter wafers. Production is expected to start by the end of 2027, with investment running through 2034. Infineon said it will ramp up capacity in line with demand.
GaN chips are seen as more efficient than conventional silicon parts and are in high demand for powering AI data centers. A 300 mm wafer holds 2.3 times as many chips as the more common 200 mm wafer, Reuters reported. Chief Executive Jochen Hanebeck named artificial intelligence, power grids, electric vehicles and robotics as target fields. Infineon will be "the first company in the world to bring gallium nitride power electronics into volume production," he said, according to eeNews Europe.
The European Commission has approved 319 million euros in state aid under the European Chips Act, eeNews Europe reported, while formal funding approval from Austria's economy ministry is still pending. The plant will use existing cleanroom space in Villach, which employs about 4,800 people. Infineon shares have fallen about 40% since mid-June; they rose nearly 1% in early Frankfurt trading on Tuesday.