Infineon Technologies is investing around €1.1 billion in its Villach facility in Austria to establish what it says will be the world’s first high-volume manufacturing plant for gallium nitride (GaN) power semiconductors on 300mm wafers. Production is expected to begin by the end of 2027, with investment continuing through 2034. The move marks a significant step in scaling up GaN technology for commercial production, with implications for European semiconductor manufacturing and supply chains. For power electronics designers, the shift to larger wafers could improve manufacturing economics and accelerate GaN adoption in AI data centers, electric vehicles and industrial systems. Moving 300mm GaN into volume production The new manufacturing facility will build on Infineon’s existing cleanroom infrastructure in Villach, combining upgraded production capabilities with established operations to reduce expansion costs. Infineon successfully processed its first 300mm GaN wafers in 2024, demonstrating a technology that can deliver approximately 2.3 times as many chips per wafer compared with conventional 200mm manufacturing. The company is now taking that technology into high-volume production, with capacity ramp-up aligned with market demand. “This substantial investment shows our clear commitment to strengthening the European semiconductor ecosystem and Europe’s technological sovereignty. By establishing high-volume manufacturing on 300-millimeter wafers, we will be the first company in the world to bring gallium nitride power electronics into volume production,” said Jochen Hanebeck, CEO of Infineon Technologies AG. GaN devices offer faster switching, lower power losses and reduced heat generation compared with conventional silicon-based power devices, enabling smaller and more efficient power conversion systems. European Chips Act backs expansion The project is supported by €319 million in state aid approved by the European Commission under the European Chips Act. Formal funding approval from Austria’s Federal Ministry for Economic Affairs, Energy and Tourism is still pending. The investment is intended to strengthen Europe’s semiconductor manufacturing capabilities while supporting collaboration between industry, universities, research organizations and smaller technology companies. Villach is already a major center for Infineon’s power semiconductor research and manufacturing operations. The company employs around 4,800 people at the site, with approximately 5,800 employees across Austria. The new facility will also strengthen links between GaN manufacturing and ongoing power electronics R&D activities in the region. AI and electrification drive GaN demand Demand for GaN power semiconductors is expected to accelerate as AI infrastructure, energy systems, e-mobility and robotics require increasingly efficient power conversion. According to Yole Group’s Power GaN 2026 report, the global GaN power semiconductor market could reach approximately $3.5 billion by 2031, representing annual growth of around 35% between 2025 and 2031. For Infineon, moving to 300mm manufacturing offers a route to greater production scale as GaN expands beyond niche applications into mainstream power electronics. The post Infineon invests €1.1bn in Europe’s 300mm GaN chip production appeared first on eeNews Europe .