Infineon to invest €1.1 billion in Villach chip production
Tuesday 27th October 2026 on 09:00 in
Austria
Infineon plans to invest €1.1 billion in its Villach plant by 2034 to build Europe’s first high-volume production line for gallium nitride power semiconductors on 300-millimetre wafers, ORF reported.
The project will use existing cleanroom space at the site in the southern Austrian city. Production is expected to start by the end of 2027.
The new-generation semiconductors are designed to meet growing demand for energy-efficient chips used in artificial intelligence data centres, energy infrastructure, electric vehicles and robotics. The project is eligible for up to €319 million in support under the European Chips Act.
Infineon said using existing and modernised infrastructure would make the expansion more efficient and cost-effective. The company says 300-millimetre wafers can produce 2.3 times as many chips as 200-millimetre wafers.
Infineon Austria employs about 5,800 people, including around 4,800 in Villach. The investment is intended to strengthen the city’s role as a global centre for power semiconductors.
Infineon Technologies chief executive Jochen Hanebeck described the investment as a commitment to strengthening Europe’s semiconductor industry and technological independence. Austrian Chancellor Christian Stocker said it was one of the largest single investments in the country’s high-tech industry.