Infineon to Build First 300mm GaN Production Site in Villach With €1.1 Billion Investment

Infineon Technologies (IFNNY) said October 27 it will build the world's first 300-millimeter (12-inch) GaN power semiconductor mass-production site at its Villach, Austria facility, committing about €1.1 billion ($1.23 billion) through 2034. Production is slated to begin at the end of 2027. The European Commission approved €319 million in state aid under the European Chips Act framework, though formal commitment awaits Austrian authorities. The project upgrades existing cleanroom infrastructure rather than building new facilities. Villach employs about 4,800 people and already produces 200mm GaN wafers. A 300mm wafer yields roughly 2.3 times as many chips per wafer, potentially lowering per-chip costs, contingent on yields and utilization. Infineon produced its first 300mm GaN wafer in 2024. According to Yole Group, the global GaN power device market reached about $588 million in 2025, up 63% from $361 million in 2024. Innoscience leads with roughly 31% share; Infineon ranks second at about 16%, up from fifth place at 11.2% in 2024.