Infineon’s €1.1 billion Villach expansion expected to benefit Styria

Infineon plans to invest 1.1 billion euros in its Villach facility over the coming years, with the expansion also expected to benefit Graz and the wider region of Styria, ORF reports.

The German chipmaker plans to build a plant in Villach to produce chips using a technology developed there that is new worldwide. The chips are expected to use less power and deliver greater performance than existing products.

Infineon’s Graz operation is part of the Silicon Alps Cluster, a network linking semiconductor companies, technology firms and research institutions in Styria. Cluster managing director Robert Gfrerer said construction of the new plant would also create work for regional businesses, including electrical contractors, plumbing firms and roofers.

Gfrerer said the investment could raise the international profile of the Villach-Graz chip region and help it attract more funding. He cited an analysis that ranks the region among Europe’s top six in internal documents.

The new technology was developed in collaboration with research institutions. Gfrerer warned that cuts to university funding could limit basic research and affect the region’s long-term prospects. The cluster plans to continue working closely with research institutions.