The European Commission has approved €319 million in Austrian state aid for Infineon Technologies Austria AG (IFAT) to support the mass production of gallium nitride (GaN) power semiconductors on 300 mm wafers at its Villach site.

The project, known as Empowering Fab, forms part of an investment of around €1.1 billion planned by Infineon by 2034. Production is expected to begin by the end of 2027, with output increasing in line with market demand.

The facility will move production from 200 mm to larger 300 mm wafers. The Commission describes the project as first-of-its-kind in the European Union, where comparable high-volume manufacturing of power GaN devices on 300 mm wafers is not currently available.

GaN semiconductors improve power conversion efficiency and are used in applications such as artificial intelligence data centres, electric vehicles, energy infrastructure and robotics. Larger wafers can increase the number of chips produced per wafer and improve manufacturing efficiency.

The investment aims to strengthen Europe’s semiconductor manufacturing capacity and reduce reliance on external supply chains. It supports the EU’s wider efforts under the European Chips Act to expand strategically important technologies.

The approved aid will take the form of an Austrian state grant, subject to the Commission’s conditions. The formal funding commitment from the Austrian government was still expected following the approval. The decision authorises the aid but does not mean the money has been disbursed or the facility is operational.

The project is expected to strengthen Europe’s advanced power semiconductor industry as production capacity expands.