German chipmaker Infineon announced on 27 October 2026 that it will invest around €1.1 billion to upgrade its Villach, Austria, site and establish what it calls the world’s first high‑volume manufacturing line for gallium nitride (GaN) power semiconductors on 300‑millimetre wafers. Production is scheduled to start by the end of 2027, with investment and build‑out stretching through 2034.
The project and timeline
Infineon said the Villach investment will be implemented inside existing cleanrooms so capacity can be expanded efficiently, and that the larger 300mm wafers yield about 2.3 times as many chips as 200mm production — a key driver of unit‑cost improvement as GaN moves to high volume. The company named AI data centres, energy infrastructure, e‑mobility and robotics among target markets for the new GaN devices.
The European Commission confirmed approval of up to €319 million in Austrian state aid for the project under the European Chips Act, saying the measure is intended to strengthen the EU semiconductor value chain and enable a first‑of‑a‑kind manufacturing capacity for power GaN on 300mm wafers in Europe. The Commission set the approval on 27 October 2026.
Why GaN matters for cars and AI
GaN (gallium nitride) is a wide‑bandgap semiconductor material that can switch and convert electricity with lower losses than silicon, enabling smaller, more efficient power systems. Infineon highlighted that the efficiency and power‑density gains from GaN make it attractive for electric‑vehicle power electronics as well as for the high‑power supplies used in AI training and inference centres. The company cited market research expecting strong growth in GaN demand over the coming years.
