Technology: Infineon is investing more than one billion euros in Austria

Munich. The chip manufacturer Infineon is massively expanding its factory in Villach, Austria. A new production line for power-saving chips made from the innovative material gallium nitride (GaN) is to be built for 1.1 billion euros. The DAX group announced this on Tuesday morning.

“This substantial investment is our clear commitment to strengthening the European semiconductor ecosystem and Europe’s technological sovereignty,” said Infineon boss Jochen Hanebeck. In the summer, the manager opened a new factory in Dresden that cost five billion euros.

For Infineon, GaN is one of the great hopes for growth. Hanebeck therefore invests a lot in the business. Three years ago, the CEO bought the Canadian chip designer GaN-Systems for $830 million.

Compared to the silicon commonly used in the chip industry, the crystal-like material is characterized by lower energy losses and higher switching speeds. But so far it is significantly more expensive than comparable amounts of silicon.

Two years ago, Infineon succeeded for the first time in producing GaN power semiconductors on 300 millimeter disks. The larger the wafers, the lower the unit costs. GaN chips are currently manufactured on 150 millimeter wafers as standard; the industry is currently switching to 200 millimeters.