Semiconductors: Internationally leading companies rely on Austria as a business location

Austria has established itself as an internationally sought-after business location for semiconductor technology. The close connection of industry and research, highly qualified skilled workers, targeted public sector funding as well as the national implementation of the “EU Chips Act” to the amount of € 3 billion create optimal conditions for development and production. Companies such as Infineon, Intel, and AT&S drive technological innovations forward here, supported by a dynamic environment along the entire value chain.  

Central location for a key technology 

Semiconductors comprise the foundation of numerous technologies, whether in electric-powered vehicles, smart phones, or modern medical systems. Austria ranks among the leading business locations in Europe for the development and design of such solutions. In a European comparisona European comparison (), the country is rated first on a per capita basis when it comes to industrial value creation, employment and research activities in this field. This strength is also a convincing argument for international flagship companies.  

Austria’s competence is particularly in demand when it comes to the field of chip design, supported by highly qualified developers and specialised suppliers. 93 technology-oriented institutes at more than 100 sites conduct research on pioneering applications and train highly qualified skilled workers.  

Attractive conditions such as the 14% research premium combined with direct research funding support research, testing and industrial scaling.  

Semiconductor power for Austria 

AT&S ranks among the world’s leading manufacturers of high-quality printed circuit boards and IC substrates – key components in the semiconductor value chain. In 2025, the company put a new facility into operation in Leoben in the federal state of Styria. It is Europe’s first and only production plant for IC substrates and is supported by an integrated centre for research and development.  

The new site is part of an even bigger European objective. Within the context of the IPCEI initiative (Important Projects of Common European Interest), Austria is focusing specifically on enhancing the continent’s technological sovereignty in the field of microelectronics. Companies such as AT&S, Infineon, AVL, NXP and EEMCO develop key technologies to achieve industrial maturity, ranging from energy-efficient semiconductor materials to highly secure communications systems. The projects link research to initial production, thus strengthening Europe’s position in a globally strategic field of technology.  

Thanks to its new pilot production in Villach, the German semiconductor company InfineonInfineon () is setting yet another technological milestone in Austria. For the first time, 300mm power wafers based on gallium nitride (GaN) are being manufactured in Europe. Gallium nitride is an innovative semiconductor material enabling particularly energy-efficient power electronics.  

A strong signal for the business location 

The EU Commission approved funding to the amount of € 227 million on the part of the Republic of Austria granted to the semiconductor producer ams-Osram in Premstätten, Styria. Multinationals such as the American technology group Intel and InfineonInfineon () of Germany are relying on Austria, a country located in the heart of Europe. Both firms established research and development centres in Austria focusing on power semiconductors, AI, and sensor technology. The industrial environment is complemented by a growing number of microelectronic startups. Accordingly, Austria is positioning itself as a strong location for international companies in the semiconductor segment. strong location for international companies in the semiconductor segment.  () 

Here you can find more information about microelectronics in Austria: Microelectronics IndustryMicroelectronics Industry ().