Infineon Invests €1.1 Billion in Europe's First 300mm GaN Fab

Infineon plans to invest €1.1 billion in Austria to establish the world’s first high-volume 300mm GaN power semiconductor fab, with production expected to begin by the end of 2027.

Semiconductor manufacturer Infineon Technologies plans to invest €1.1 billion (approximately US$1.23 billion) in its Villach facility in Austria to establish the world’s first high-volume manufacturing plant for gallium nitride (GaN) power semiconductors using 300-millimetre wafers. Announced on October 27, 2026, the investment is intended to expand production capacity and meet rising demand for energy-efficient power solutions, particularly for artificial intelligence data centres and other advanced applications.

The project will expand Infineon’s existing manufacturing operations in Villach, building on the company’s earlier development of 300mm GaN wafer technology. Production is scheduled to begin by the end of 2027, with the investment planned through 2034. The facility will focus on scaling the technology from development and pilot production towards high-volume manufacturing.

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Gallium nitride is a wide-bandgap semiconductor material that can deliver higher power efficiency and support more compact electronic systems than conventional silicon in suitable applications. These characteristics make it increasingly relevant for power conversion systems that manage electricity in data centres, electric vehicles, renewable energy infrastructure and industrial equipment.

A central advantage of the 300mm manufacturing process is its potential to increase production efficiency. Compared with commonly used 200mm wafers, 300mm wafers can accommodate approximately 2.3 times as many chips, helping manufacturers increase output per wafer and reduce production costs as volumes grow. Infineon is also leveraging its existing expertise and manufacturing infrastructure for 300mm silicon production to scale GaN manufacturing more efficiently.

The investment comes amid increasing demand for power semiconductors from AI data centres, which require efficient electricity conversion and power management to support energy-intensive computing workloads. GaN technology can also support applications in energy infrastructure, electric mobility, robotics and consumer electronics. Infineon chief executive Jochen Hanebeck said the expansion would help broaden the use of GaN technology across these markets.

The project is expected to receive €319 million in support under the European Chips Act, helping strengthen Europe's semiconductor manufacturing capacity. The investment aligns with wider European efforts to improve supply chain resilience and expand domestic production of critical electronic components.

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By scaling 300mm GaN manufacturing at Villach, Infineon aims to strengthen its position in the power semiconductor market while supporting the growing requirements of digital infrastructure and electrification. The project's progress will depend on construction and production ramp-up, with commercial output expected to start at the end of 2027.