Infineon plans €1.1 billion chip investment in Villach

Infineon, a German chipmaker, plans to invest €1.1 billion through 2034 at Villach, Austria, to establish high-volume production of gallium nitride (GaN) power semiconductors, Semiconductor Engineering said. The publication describes the planned facility as Europe’s first for this type of production on 300mm wafers.

The plan follows earlier development work. Infineon said, in an 27 October 2026, account by Evertiq, that it had processed its first GaN wafers in that format 2 years earlier.

What the investment would change

Infineon said the money would go into existing cleanrooms—controlled spaces used to manufacture chips—at Villach, allowing it to expand capacity efficiently and cost-effectively.

The larger wafer format is central to the plan. Infineon says it yields 2.3 times as many chips as a 200mm wafer. GaN also switches and converts electrical power more efficiently than silicon, allowing smaller systems that use less energy.

Infineon is targeting uses in superintelligence (SI) data centers, energy infrastructure, electric mobility, robotics and consumer electronics.

Funding and the planned production start

The European Commission has approved €319 million in state aid under the European Chips Act. A formal funding commitment from the Austrian Ministry for Economic Affairs was expected later.

Infineon has not said how many jobs the new GaN production will create. The company schedules production to start by the end of 2027 and plans to increase output in line with market demand.