Infineon Technologies is making a major bet on gallium nitride (GaN) power electronics in Europe. The company plans to invest around €1.1 billion in its Villach, Austria site to create what it says will be the world’s first high-volume 300 mm GaN power semiconductor manufacturing facility. Production is scheduled to start by the end of 2027, with investment continuing through 2034.
Engineer in an Infineon cleanroom handling a 300 mm semiconductor wafer — Image: Infineon Technologies
Scaling GaN on 300 mm wafers
Infineon demonstrated its first 300 mm GaN wafers in 2024. Moving this process into volume production is a key step: a 300 mm wafer can deliver about 2.3× more chips than a conventional 200 mm wafer, improving fab economics and supporting wider GaN adoption.
GaN power devices offer:
- faster switching
- lower conduction and switching losses
- reduced heat generation
This enables smaller, more efficient power supplies and converters – highly relevant for AI data centers, energy infrastructure, electric vehicles, robotics and industrial drives.
The new line will reuse and upgrade existing cleanroom infrastructure in Villach, reducing the cost of capacity expansion and tying directly into Infineon’s established power semiconductor operations and R&D at the site.
Backed by the European Chips Act
The project is supported by up to €319 million in state aid under the European Chips Act, approved by the European Commission. Final confirmation from Austria’s Federal Ministry for Economic Affairs, Energy and Tourism is pending.
Beyond boosting Infineon’s capacity, the investment is intended to strengthen Europe’s technological sovereignty in semiconductors and generate spillover benefits for:
- universities and research institutes
- start-ups and SMEs
- industrial partners across the power electronics value chain
According to Yole Group’s Power GaN 2026 report, the GaN power semiconductor market could reach about $3.5 billion by 2031, with roughly 35% annual growth between 2025 and 2031. Infineon’s move to 300 mm manufacturing positions it to serve that demand at industrial scale.
Source: Infineon Technologies, eeNews Europe · Cover image: Infineon Technologies
