Key takeaways:
- Production is slated to start at the end of 2027.
- Infineon sees huge demand for GaN in AI data centers, energy infrastructure, robotics, automotive and more.
- Investment continues Infineon’s push into GaN after TSMC made plans to exit the market.
German chipmaker Infineon Technologies said it will establish what it claims is the world’s first high-volume manufacturing facility for gallium nitride (GaN) power semiconductors on 300 mm wafers in Villach, Austria.
Under the project, Infineon said it will invest about $1.23 billion in its existing cleanroom facilities at the Villach fab by 2034. The fab will use both existing and upgraded infrastructure to expand GaN manufacturing capacity. Infineon said production is scheduled to begin by the end of 2027.
Infineon said the need for GaN comes as there is a growing demand for high-performance power semiconductors for applications like:
- AI data centers
- Energy infrastructure
- Robotics
- Consumer electronics
“This substantial investment shows our clear commitment to strengthening the European semiconductor ecosystem and Europe’s technological sovereignty,” said Jochen Hanebeck, CEO of Infineon Technologies. “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.”
Infineon pushes heavily into GaN manufacturing
In September 2024, Infineon developed what it claimed at the time was the first 300 mm GaN wafer that would offer about 2.3 times more chips per wafer than 200 mm GaN wafers.
The company said it would manufacture the 300 mm GaN wafer on an integrated pilot line in its existing 300 mm silicon production fab at the Villach facility. It also said it would scale GaN capacity with the market demand.
The company said it would manufacture the 300 mm GaN wafer on an integrated pilot line in its existing 300 mm silicon production fab at the Villach facility. It also said it would scale GaN capacity with the market demand.
Infineon is now transferring this technology to what it claims is the world’s first high-volume manufacturing fab.
Infineon bids for gap in GaN manufacturing left by TSMC
In 2025, the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), announced it would phase out support for GaN manufacturing by 2027. The Taiwanese company cited market dynamics and its long-term business strategy. Analysts said the low-margin, low-volume business didn’t fit TSMC’s focus on leading-edge manufacturing, and that mounting price pressure from Chinese rivals likely played a role.
That left a gap in GaN supply. Shortly after TSMC’s announcement, Infineon said it would scale up its GaN operations, including plans to expand its 300 mm GaN wafer production.
