Infineon to build high-volume 300-millimeter GaN power chip plant in Villach

Infineon Technologies will invest around €1.1 billion in its existing Villach cleanroom facilities by 2034 to build a high-volume manufacturing site for gallium nitride (GaN) power semiconductors on 300-millimeter wafers, with production scheduled to start by the end of 2027. The project is supported by €319 million in state aid under the European Chips Act, following European Commission approval. Infineon says 300-millimeter wafers yield 2.3 times as many chips per wafer as 200-millimeter production.

Key facts

Market context

Gallium nitride is a wide-bandgap semiconductor material used in power transistors and related devices that switch electricity more efficiently than conventional silicon, with lower losses and the ability to operate at higher frequencies. Demand is driven by power conversion in AI data center server power supplies, renewable and grid energy infrastructure, electric vehicle chargers and onboard power systems, robotics, and consumer electronics such as fast chargers. Most GaN power device volume has historically been produced in Asia and the United States, so new capacity in Europe can diversify supply for automotive and industrial buyers. Moving production to 300-millimeter wafers matters because larger wafers give more chips per wafer and typically lower unit costs as output scales, which can pressure pricing and push competitors to match wafer size and yield. Buyers of GaN devices should watch how quickly qualified volumes arrive and whether pricing follows the cost curve.

Source: official release on infineon.com. Summary and context written by Market Krystal.