Gallium nitride power semiconductors switch faster and waste less energy than silicon devices, so power supplies can be smaller and more efficient. The European Commission lists AI among the main applications.

What is Infineon building in Villach?

The Empowering Fab project moves power GaN production from 200 mm to 300 mm wafers, which the Commission says will be a first in the EU.

Infineon Technologies news

Semiconductor company1 story

Infineon Technologies is a German semiconductor maker based in Neubiberg near Munich, best known for power semiconductors, microcontrollers and sensors.

A large new grey factory building with cranes and an electricity pylon in front, set against a wooded mountainside in Villach, Austria. — Infineon gets EU approval for €319M Austrian aid to build Europe's first 300 mm GaN power fab

AI Policy & Regulation27 Oct 2026, 09:00 UTC

The European Commission approved €319M of Austrian state aid on 27 October 2026 for Infineon to make power GaN chips, used in AI, on 300 mm wafers.

Summary

The European Commission approved €319 million of Austrian state aid on 27 October 2026 for Infineon Technologies Austria to upgrade its Villach fab for high-volume power gallium nitride (GaN) production on 300 mm wafers. The Commission says the facility will be the first of its kind in the EU and names AI among GaN's key applications. The aid is a direct grant, approved under EU State aid rules and Chips Act principles.

About Infineon Technologies

Infineon Technologies is a German semiconductor maker based in Neubiberg near Munich, best known for power semiconductors, microcontrollers and sensors. Its Austrian unit runs a large fab in Villach, Carinthia, where it makes power gallium nitride (GaN) devices used in AI data center power supplies, energy infrastructure, electric vehicles and robotics.

Reviewed 28 Oct 2026

Facts at a glance

Type: Power semiconductors, microcontrollers and sensors
Headquarters: Neubiberg, Germany source
Austrian unit: Infineon Technologies Austria AG (IFAT), Villach, Carinthia source
Villach GaN production: 200 mm power GaN today; 300 mm high-volume line planned source
EU-approved state aid: €319 million direct grant from Austria, approved 27 October 2026 source

Questions people ask

What is power GaN?: Gallium nitride power semiconductors switch faster and waste less energy than silicon devices, so power supplies can be smaller and more efficient. The European Commission lists AI among the main applications.
What is Infineon building in Villach?: The Empowering Fab project moves power GaN production from 200 mm to 300 mm wafers, which the Commission says will be a first in the EU.

Infineon Technologies news

Every story about Infineon Technologies

Infineon gets EU approval for €319M Austrian aid to build Europe's first 300 mm GaN power fab