The European Commission has approved €319 million in state subsidies for Infineon Technologies to upgrade its facility in Villach, Austria. The project, named Empowering Fab, aims to launch the world's first mass production of gallium nitride (GaN) power semiconductors on 300-mm wafers, with total project investments estimated at €1.1 billion.
Infineon plans to transition from 200-mm to 300-mm wafer production, which allows for approximately 2.3 times more chips per wafer, thereby reducing costs and improving efficiency. The company expects the first products from the upgraded facility to reach the market by the end of 2027, with the investment program running through 2034.
GaN components are increasingly used in AI server power supplies, electric vehicles, and renewable energy systems due to their high switching frequency and lower energy losses. According to Yole Group estimates, the global market for power GaN components could reach $3.5 billion by 2031, with a compound annual growth rate of 35% from 2025 to 2031.
The funding is provided under the European Chips Act. As part of the agreement, Infineon must collaborate with universities, research institutions, and startups by providing access to its facilities. The Austrian government will also participate in the distribution of potential excess profits generated by the project beyond established forecasts.
