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# Infineon to invest €1.1bn in Austrian plant for gallium nitride chips

**[The Next Web](https://daily.dev/sources/tnw)** · 2 min read · 0 upvotes · 0 comments

## Summary

Infineon will invest about €1.1bn in its Villach, Austria site to build what it calls the world's first high-volume plant for gallium nitride (GaN) chips on 300mm wafers. GaN power chips switch faster, waste less energy and run cooler than silicon, and Infineon is targeting AI data centers, energy networks, electric cars and robots. A 300mm wafer holds about 2.3 times as many chips as the 200mm wafers commonly used for GaN today. Production should start by end of 2027, with investment continuing through 2034, and the EU has approved €319m in aid under the Chips Act.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://thenextweb.com/news/infineon-1-1bn-gallium-nitride-villach>

## Questions this post answers

### Why is gallium nitride better than silicon for power chips?

Gallium nitride (GaN) switches faster, wastes less energy and runs cooler than silicon in power chips that control electricity flow in devices. This makes it well suited for handling large amounts of power efficiently, which is why Infineon is targeting GaN chips at AI data centers, energy networks, electric cars and robots.

_Engineers evaluating power components for AI hardware can follow GaN manufacturing progress on daily.dev._

### How much is Infineon investing in its gallium nitride chip plant in Villach, Austria?

Infineon is investing about €1.1bn in its Villach site to build what it describes as the world's first high-volume plant for gallium nitride chips on 300mm wafers. Production is planned to start by the end of 2027, with continued investment in the site through 2034, partly supported by €319m in EU Chips Act aid.

_Those tracking semiconductor investment trends can follow chip manufacturing news like this on daily.dev._

### What's the advantage of 300mm wafers over 200mm wafers for chip manufacturing?

A 300mm wafer holds about 2.3 times as many chips as the 200mm wafers more commonly used for gallium nitride production today, according to Infineon. This larger wafer size is expected to bring down production costs, and Infineon first produced 300mm GaN wafers in 2024.

_Hardware teams weighing manufacturing scale trade-offs can keep up with chip fab news on daily.dev._

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---

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