Infineon to build 300mm GaN power chip plant in Austria
Image: Infineon
Infineon Technologies is investing around €1.1 billion in its existing cleanroom facilities at Villach, Austria, to establish what it describes as the world's first high-volume manufacturing facility for gallium nitride (GaN) power semiconductors on 300-millimetre wafers. The company says production is scheduled to start by the end of 2027, with the investment programme running to 2034.
GaN allows power devices to switch and convert electricity more efficiently than established silicon technology, enabling smaller, more energy-efficient power systems with lower losses and reduced heat generation. Infineon cites applications including AI data centres, energy infrastructure, e-mobility and robotics as drivers of demand for higher-performance power conversion.
Moving to 300-millimetre wafers from the 200-millimetre diameter widely used for GaN today is significant because, according to Infineon, the larger wafer yields 2.3 times as many chips per wafer, improving manufacturing efficiency and cost. The company states it successfully processed the world's first 300-millimetre GaN wafers two years ago and is now transferring that process to volume manufacturing for customers, rather than remaining at the demonstration stage.
Funding and site role
The project is backed by €319 million in state aid approved by the European Commission under the European Chips Act, with formal commitment from the Austrian Federal Ministry for Economic Affairs, Energy and Tourism expected within the stipulated time limits. Infineon frames the investment as reinforcing Villach's position as a global competence centre for power electronics and new semiconductor materials, alongside existing power electronics R&D activity at the site. Infineon Austria currently employs around 5,800 people, with approximately 4,800 at Villach as of the end of fiscal year 2025 (30 September 2025).
Infineon describes itself as a leader in GaN power electronics. Market analysis cited by the company, from Yole Group's Power GaN 2026 report, forecasts the GaN power semiconductor market reaching approximately USD 3.5 billion by 2031, implying annual growth of around 35 percent between 2025 and 2031. These figures represent Yole Group's forecast rather than an independently verified outcome.
