Infineon Technologies AG is establishing in Villach the worlds first high-volume manufacturing line for gallium nitride power semiconductors on 300-millimeter wafers. Approximately â¬1.1 billion will be invested in existing cleanroom facilities through 2034. Production is scheduled to begin at the end of 2027. The facility is intended to improve availability of energy-efficient chips for AI data centers, energy infrastructure, electric mobility, robotics, and consumer electronics, with capacity expanded according to market demand.
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Infineon Establishes 300-Millimeter GaN Production Base in Villach
Infineon is establishing a new manufacturing platform in Villach by producing gallium nitride power semiconductors on 300 millimeter wafers. The larger wafer format is designed for high output volumes and provides the basis for industrial scale deployment of GaN technology. This production approach supports the transition toward a new generation of power devices while further expanding Villachs role as an international center of expertise for power semiconductor development and manufacturing.
Infineon Modernizes Existing Villach Cleanrooms for Efficient Capacity Expansion
Infineon will use existing cleanroom space at its Villach site and upgrade the infrastructure already in place for the new production project. By relying on available facilities rather than constructing an entirely new building, the company aims to reduce construction effort, investment requirements, and implementation time. The approach is intended to support an efficient, cost-effective expansion of manufacturing capacity while allowing production ramp-up decisions to remain aligned with market demand.
Gallium Nitride Improves Power Efficiency Across High-Growth Technology Markets
Gallium nitride enables power conversion systems to operate with lower energy losses, higher switching frequencies, and more compact designs. These properties are increasingly important in artificial intelligence data centers, where computing loads require efficient power delivery. The technology is relevant for grid equipment, electric vehicles, industrial robots, and consumer devices. By expanding GaN production, the facility targets applications that require high performance while reducing electricity consumption and thermal management demands.
Villach GaN Production Is Scheduled to Start Late 2027
Production at Infineons Villach site is scheduled to begin toward the end of 2027. The company intends to invest approximately â¬1.1 billion in the project through 2034, supporting the conversion and expansion of manufacturing capabilities. Capacity will not be added according to a fixed volume target alone. Instead, Infineon will increase output in stages, aligning the ramp-up with verified customer demand for gallium nitride power semiconductors worldwide over coming years.
European Chips Act Grants 319 Million Euro for Semiconductor Capacity
The project will receive EUR 319 million in funding under the European Chips Act. This public support is intended to reinforce Europes technological sovereignty by expanding domestic semiconductor manufacturing capabilities. The funded high volume production facility will add capacity for advanced power semiconductors within Europe, supporting regional supply security and reducing dependence on external production locations. The investment also strengthens the European semiconductor ecosystem for industrial and energy related applications.
The Villach investment combines 300-millimeter gallium nitride manufacturing with the modernization of existing cleanroom infrastructure. This approach supports cost-efficient capacity expansion while creating a scalable production platform for energy-efficient power semiconductors. The resulting devices are intended for applications such as data centers, electric vehicles, energy systems, robotics, and consumer equipment. Financial support under the European Chips Act also reinforces European manufacturing capabilities and reduces reliance on supply chains outside Europe.
