Infineon to invest €1.1 billion in 300mm GaN production in Villach
Infineon will invest around EUR 1.1 billion by 2034 to set up high-volume production of gallium nitride (GaN) power semiconductors on 300mm wafers at its site in Villach, Austria. According to the company, it will be the first high-volume GaN fab of its kind in the world, with production scheduled to start by the end of 2027.
The investment will go into Infineon’s existing cleanroom facilities in Villach, which the company says allows capacity to be expanded efficiently and cost-effectively, according to a press release from Infineon. The ramp-up will be adjusted to market demand. The European Commission has approved EUR 319 million in state aid under the European Chips Act, and the formal funding commitment from the Austrian Ministry for Economic Affairs is expected later.
“This substantial investment shows our clear commitment to strengthening the European semiconductor ecosystem and Europe’s technological sovereignty. By establishing high-volume manufacturing on 300-millimeter wafers, we will be the first company in the world to bring gallium nitride power electronics into volume production,” says Jochen Hanebeck, CEO of Infineon.
Infineon processed its first 300mm GaN wafers two years ago and is now moving the technology into volume production. The larger wafer yields 2.3 times as many chips as a 200mm wafer. GaN switches and converts power more efficiently than silicon, allowing smaller and more energy-efficient systems. Infineon is targeting applications such as AI data centres, energy infrastructure, e-mobility, robotics and consumer electronics. Citing Yole Group, Infineon says the market for GaN power semiconductors is expected to grow by around 35% a year to roughly USD 3.5 billion in 2031.
The company has not said how many jobs the new GaN production will create.
