Commission clears €319 million Austrian subsidy for Infineon chip plant
The funding will support a €1.1 billion upgrade in Villach, where Infineon plans high-volume production of gallium nitride power chips.
The European Commission authorised Austrian support worth €319 million on 28 October 2026 for Infineon Technologies’ factory in Villach. The aid will help finance a €1.1 billion investment to expand production, with work expected to finish in 2034.
Infineon says the upgraded plant will be the first worldwide to manufacture next-generation gallium nitride power semiconductors at high volumes using 300-millimetre wafers. The German company says it successfully processed wafers of that type in 2024, also claiming a world first.
The Commission said the support, approved under the EU’s Chips Act, would reinforce the bloc’s semiconductor supply chain and autonomy. The EU wants its share of worldwide chip production to rise to 20 per cent by 2030, compared with 10 per cent in 2023, while reducing dependence on imports.
Gallium nitride chips can operate at higher voltages and temperatures than silicon and switch faster. Their applications include device chargers, AI data centres, electric vehicles and renewable-energy equipment.
Using 300-millimetre wafers rather than conventional 200-millimetre versions allows manufacturers to produce 2.3 times more chips per wafer, lowering production costs. Infineon says the investment will make Villach a global centre of expertise for power semiconductors.
