Infineon to invest EUR 1.1 billion in Villach site for GaN power chips
Infineon will invest EUR 1.1 billion in Villach, Austria, for Europe's first high-volume GaN power chip plant on 300 mm wafers, starting end-2027.
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what happened
Infineon Technologies said it plans to invest 1.1 billion euros in its Villach site in Austria. According to the company, the facility will become the first high-volume production plant in Europe for gallium nitride (GaN) power semiconductors on 300 mm wafers. The site is meant to serve as a global competence center for power semiconductors.
Funding under the European Chips Act will amount to 319 million euros. The company says the project aims to strengthen Europe's technological sovereignty. Production is scheduled to start at the end of 2027.
why it matters
The announcement points to a long-term expansion of European capacity for power semiconductors. Public funding lowers the capital risk of the project, while the late start date means returns from the investment will only become visible in several years. For investors, it is a useful marker for Europe's chip sector.
market impact
Infineon and European chip sector: long-term capacity growth for power semiconductors
tags
instruments
sources
- Infineon To Invest EUR 1.1 Bln In Austria Site — Reuters, 27 October 2026 at 07:51 UTC
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