Infineon Technologies is set to invest €1.1 billion into its production facility in Villach, Austria, by 2034. The project focuses on establishing the world's first high-volume manufacturing of gallium nitride (GaN) power semiconductors on 300-millimetre wafers, with production scheduled to begin in 2027.
The company achieved a technical milestone in 2024 by transitioning GaN semiconductor production from 200-millimetre to 300-millimetre wafers, which increased production capacity by a factor of 2.3. This expansion will utilize existing cleanroom infrastructure to maintain cost-efficiency while meeting rising demand for energy-efficient components in sectors like electric vehicles and AI data centers.
The initiative is supported by the European Chips Act, with the European Commission already approving €319 million in state aid. Industry analysts project the GaN power semiconductor market to reach approximately $3.5 billion by 2031, with an annual growth rate of 35 percent between 2025 and 2031.
Infineon Austria currently employs 5,800 people, with 4,800 working at the Villach plant. Officials noted that the investment represents one of the largest single industrial commitments in Austrian history, aimed at strengthening European technological sovereignty and maintaining a competitive edge in microelectronics.
