Infineon is a leader in the field of gallium nitride power electronics. Two years ago, Infineon achieved a technological milestone with the successful fabrication of the world’s first 300-millimeter gallium nitride wafers. Chip production on 300-millimeter wafers is more advanced and significantly more efficient than on 200-millimeter wafers, as the larger wafer diameter enables 2.3 times as many chips per wafer. With the investment announced today, Infineon is now scaling up this technology to the world’s first high-volume production line to supply customers.
“This substantial investment is our clear commitment to strengthening the European semiconductor ecosystem and Europe’s technological sovereignty. With the establishment of the 300-millimeter high-volume production facility, we are the first company worldwide to bring gallium nitride power electronics into volume production,” says Jochen Hanebeck, CEO of Infineon Technologies AG. “In doing so, we are paving the way for the widespread use of gallium nitride in a wide range of key applications in areas such as artificial intelligence, energy infrastructure, electromobility, and robotics. This new, state-of-the-art manufacturing facility translates innovation leadership into direct customer benefits.”
Christian Stocker, Chancellor of the Republic of Austria: “With Infineon’s billion-euro investment, we are witnessing one of the largest single investments in the history of the Austrian high-tech industry. This is not only a strong commitment to our business location but also ensures that the future of the semiconductor industry will be shaped not only in Asia or America but also in Austria and Europe. As a result, a globally unique production facility for one of the most critical key technologies of the future is being established in Villach. This strengthens our international competitiveness and secures domestic jobs and value creation. After all, while Austria may not be a country with an endless supply of natural resources, it is a country with an endless supply of talent. Our cutting-edge research sets international standards, and companies like Infineon demonstrate day after day how innovation ‘made in Austria’ works. We intend to build on precisely these strengths with our industrial strategy so that by 2035, we will once again be among the world’s top ten industrial nations.”
Wolfgang Hattmannsdorfer, Minister of Economic Affairs of the Republic of Austria: “Chips are as important to tomorrow’s economy as oil was to yesterday’s. Europe currently accounts for only about ten percent of global chip production. To me, it’s therefore clear: We must also produce this key technology in Europe. Austria is already a leader in energy-efficient chips. Measured against our population size, we rank first in the EU in terms of spending on corporate research in the semiconductor sector. We want to build on this lead with our industrial strategy and not only research new technologies but also produce them on an industrial scale. This benefits the entire business community: for every job in the chip industry, six additional jobs in the broader economy can be created. That is why we intend to support Infineon’s new chip production facility with up to 319 million euros—with clear funding criteria for the location. In this way, we ensure that public funds strengthen long-term value creation and jobs in Austria.”
The investment in this globally innovative, future-oriented technology is being funded under the European Chips Act. The European Commission has approved state funding in the amount of 319 million euros. The formal funding commitment from the responsible Austrian Federal Ministry of Economy, Energy, and Tourism is expected within the set deadlines. With the approval of the funding by the Federal Ministry of Economy, Energy, and Tourism, the European Commission is not only enabling the expansion of manufacturing capacities in Europe but is also fostering positive effects in related fields—for example, through cross-border collaboration with universities and research institutions or by providing startups and small and medium-sized enterprises with better access to innovative technologies and products.
“Competitiveness and technological sovereignty arise where excellent research translates into industrial value creation. This is precisely where our flagship project comes in: We bring innovation from Austria into industrial applications, strengthen our technological leadership, and secure highly skilled jobs. Microelectronics is a key industry with enormous leverage for the economy and society. The entire Austrian semiconductor ecosystem benefits from this—from research organizations and universities to industrial partners. “This is how we sustainably strengthen Europe’s competitiveness and strategic autonomy in microelectronics,” emphasizes Sabine Herlitschka, CEO of Infineon Technologies Austria AG.
The investment reinforces Villach’s role as a global center of excellence for power electronics and new semiconductor materials. Infineon Austria currently employs approximately 5,800 people, about 4,800 of whom are based in Villach[1]. Together with universities, research institutions, startups, and industry partners, Infineon forms the heart of an internationally recognized microelectronics ecosystem in southern Austria. The establishment of the new 300-millimeter GaN production facility will also create positive synergies with the research and development activities in the field of power electronics that are also based in Villach.
Gallium nitride is a modern semiconductor material that can switch and convert electricity much more efficiently. This enables smaller, more powerful, and more energy-efficient electronic systems with lower energy losses and less heat generation.
Analysts expect the market for GaN power semiconductors to reach approximately three and a half billion dollars by 2031—representing annual growth of about 35 percent between 2025 and 2031.[2]
[1] Fiscal year 2025, as of September 30, 2025
[2] Yole Group: Power GaN 2026 report. https://www.yolegroup.com/product/report/power-gan-2026/
About Infineon
Infineon Technologies AG is a leading global provider of semiconductor solutions for power systems and the Internet of Things (IoT). With its products and solutions, Infineon is driving decarbonization and digitalization. The company has approximately 57,000 employees worldwide (as of the end of September 2025) and generated revenue of approximately 14.7 billion euros in fiscal year 2025 (ending in September).
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Related Links
👉 www.infineon.com
Photo: Infineon
