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Infineon invests €1.1 billion in Austria
30. October 2026Infineon is establishing the world's first high-volume manufacturing facility for gallium nitride chips on 300-millimetre wafers in Villach. The investment of around €1.1 billion strengthens Austria's position as a competence centre for energy-efficient microelectronics.
Infineon AustriaInfineon Austria () is further expanding its role as a global competence centre for power semiconductors: By 2034, its German parent company will invest around €1.1 billion in existing cleanroom facilities at its Villach site. This is where the world's first high-volume manufacturing facility for the latest generation of gallium nitride (GaN) power semiconductors on 300-millimetre wafers will be established. Production is scheduled to start at the end of 2027, with the ramp-up depending on market demand.
With this investment, Infineon is responding to the growing demand for high-performance power supply solutions. Gallium nitride (GaN) enables efficiency gains in AI data centres, energy infrastructure, electric mobility, robotics and consumer electronics. The larger wafer surface also makes manufacturing more efficient: According to Infineon, a 300-millimetre wafer can produce 2.3 times as many chips as a 200-millimetre wafer.
The Republic of Austria is supporting the project with €319 million in funding under the European Chips Act to strengthen technological sovereignty. Federal Chancellor Christian Stocker sees the investment as a commitment to Austria as a business location and as a contribution to the country's international competitiveness.
In addition, the project is intended to promote cross-border cooperation with universities and research institutions, as well as improve startups' and SMEs' access to innovative technologies and products.
Austria is already a leader in energy-efficient chips. Relative to our population, we rank first in the EU in business R&D spending in the semiconductor sector. With our industrial strategy, we intend to build on this lead and not only research new technologies but also manufacture them on an industrial scale.
Why Infineon chooses Austria as a business location
Jochen Hanebeck, CEO of Infineon Technologies AG, identifies three key factors behind the company's choice of location: the expertise of its employees, the ability to scale up production facilities and financial support. In the field of power semiconductors, close proximity between development and manufacturing is particularly important, as much of the expertise lies in the individual manufacturing processes. In addition, existing facilities in Villach can be converted more quickly than a new building could be constructed.
The “300 mm GaN wafer technology”, which enables more efficient manufacturing and reduces energy losses in applications, was developed in Austria. The investment strengthens Villach's role as a global competence centre for power electronics and new semiconductor materials. Infineon Austria currently employs around 5,800 people, approximately 4,800 of whom work at the Villach site. Together with universities, research institutions, startups and industry partners, Infineon forms the heart of an internationally recognised microelectronics ecosystem in southern Austria.
Read more about the interaction between research and production in our story on why Austria is a key location for Infineon's research and development activitieswhy Austria is a key location for Infineon's research and development activities ().
Competitiveness and technological sovereignty emerge where excellent research is translated into industrial value creation. This is precisely where our flagship project comes in: From Austria, we are bringing innovation into industrial application, strengthening our technological leadership and securing highly skilled jobs.
FAQs
- 01
Why is Infineon investing in its Villach site in Austria?
Infineon relies on the expertise of its employees in Austria. Other reasons include the scalability of its manufacturing facilities and financial support. In power semiconductors, development and manufacturing are closely interconnected. The expertise lies in the individual manufacturing processes. Existing facilities in Villach can be converted more quickly. Higher productivity and faster innovation are intended to offset higher labour costs.
- 02
What applications do Infineon's new gallium nitride chips enable?
Gallium nitride chips increase the efficiency of AI data centres. Other applications include energy infrastructure and electric mobility. Robotics and consumer electronics also benefit from the technology. The GaN technology developed in Austria reduces energy losses. Manufacturing on 300-millimetre wafers is also more efficient. Each wafer can produce 2.3 times as many chips as a 200-millimetre wafer.
- 03
How much is Infineon investing in Villach, and when will production start?
Infineon is investing around €1.1 billion in Villach by 2034. The investment will go towards existing cleanroom facilities at the site. This is where the world's first high-volume manufacturing facility for gallium nitride power semiconductors on 300-millimetre wafers will be established. Production is scheduled to start at the end of 2027. The ramp-up of production will depend on market demand.
- 04
How does the investment strengthen Austria as a business location?
The investment strengthens Villach's position as a global competence centre for power electronics and new semiconductor materials. Austria is supporting the project with €319 million in funding. The funding is provided under the European Chips Act. The project is intended to strengthen cooperation with research institutions and give startups and SMEs access to innovative technologies.