Infineon wins €319M EU grant for world's first 300mm GaN chip plant
What's the deal? Infineon Technologies has secured €319 million (≈$355 million) in EU state aid to build what it calls the world's first high-volume manufacturing plant for gallium nitride (GaN) power semiconductors on 300mm (12-inch) wafers. The grant, approved by the European CommissionDealroom has a profile for this one. Try Dealroom → under the European Chips Act, supports a roughly €1.1 billion investment at Infineon's Villach site in Austria through 2034.
By the numbers: It is among the largest semiconductor grants on record for the sector in Germany, ranking in the top 1% of 174 comparable grant rounds. Production is scheduled to start by the end of 2027, ramping to match market demand.
Why GaN? GaN switches and converts power more efficiently than silicon, enabling smaller, more energy-efficient systems. Infineon is targeting AI data centres, energy infrastructure, e-mobility, robotics, and consumer electronics. A 300mm wafer yields 2.3 times as many chips as a 200mm one, improving production efficiency.
Why now? AI data centres are driving demand for high-efficiency power supply. Infineon recently deepened work with Nvidia on GaN power conversion for 800V DC architectures and says demand for data-centre power products is strong. It processed its first 300mm GaN wafers two years ago and is now moving the technology into volume production.
What's the endgame? The investment reinforces Europe's semiconductor supply chain and what Infineon calls "Europe's technological sovereignty." The Villach plant will upgrade existing cleanrooms rather than build from scratch, which the company says expands capacity cost-effectively.
"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 chief executive officer Jochen Hanebeck.
What could go wrong? The plant will not produce until late 2027, so returns hinge on demand holding up and a smooth production ramp. Infineon has not said how many jobs the project will create.
The signal: GaN is moving from technical validation to large-scale supply, with manufacturers betting that efficient power conversion becomes a core part of AI infrastructure. Infineon cites Yole Group estimates that the GaN power semiconductor market will reach roughly $3.5 billion by 2031, growing about 35% a year from 2025.
Read more: tw.finance.yahoo.com
Image credit: Generated with Gemini
