The European Commission has approved €319 million in Austrian state aid for Infineon Technologies to turn its Villach site in Carinthia into one of the world's first high-volume manufacturing facilities for next-generation semiconductors.
The total investment is €1.1 billion. The existing site will be upgraded to increase production of gallium nitride (GaN) chips on 300-millimetre wafers. According to Infineon, it would be the first high-volume facility of its kind in the world, a milestone the company places within its leadership in power semiconductors.
Image: infineon.com — https://www.infineon.com
Why GaN matters
GaN power semiconductors are increasingly replacing silicon in power electronics because they handle higher voltages, switch faster and tolerate higher temperatures. They are used in smartphone, laptop and tablet chargers, but also in AI data centres, electric vehicles, solar panels, wind turbines, 5G and 6G base stations and robots.
300-millimetre wafers are larger than conventional 200-millimetre ones and allow 2.3 times more chips per wafer, lowering manufacturing costs. Analysts expect the GaN power semiconductor market to reach about $3.1 billion by 2031, with annual growth of around 35% between 2025 and 2031.
The European framework
The aid was approved under the Chips Act, the EU plan to strengthen the bloc's position in the semiconductor value chain and reduce reliance on imports from third countries. The goal is to raise the EU's share of global production from 10% in 2023 to 20% by 2030.
Image: cleanroomtechnology.com — https://www.cleanroomtechnology.com/infineon-to-invest-1-6-billion-euros-in-new-chip-factory-in-austria--143100
Austrian Chancellor Christian Stocker called the project «one of the largest single investments in the history of Austria's high-tech industry», stressing that the future of semiconductors will not be shaped solely in Asia or the United States. Infineon's CEO spoke of a clear commitment to Europe's technological sovereignty.
Work at the Villach site is expected to be completed in 2034.
No comments yet. Be the first!