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Commission authorises €319 million Austrian aid for Infineon's Villach site

This dossier follows the upgrade of Infineon's Villach site for gallium nitride power devices, public funding and industrial milestones, distinguishing authorisations from payments and actual production.

Last updated : 1 key moments
Infineon's Villach site under construction in September 2020. Archive illustration, not work on the project announced in 2026.
Infineon's Villach site under construction in September 2020. Archive illustration, not work on the project announced in 2026. — Johann Jaritz / Wikimedia Commons — CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0/ — archives du 21 septembre 2020, version réduite.

Where things stand

The European Commission authorised €319 million in Austrian state aid on 27 October 2026 to upgrade Infineon's Villach site. The group plans to invest around €1.1 billion by 2034 in gallium nitride power semiconductors.

Reported information

Commission authorises €319 million Austrian aid for Infineon's Villach site

The European Commission authorised €319 million in Austrian state aid on 27 October 2026 to upgrade Infineon's Villach site. The group plans to invest around €1.1 billion by 2034 in gallium nitride power semiconductors.

Infineon's Villach site under construction in September 2020. Archive illustration, not work on the project announced in 2026.
Infineon's Villach site under construction in September 2020. Archive illustration, not work on the project announced in 2026. — Johann Jaritz / Wikimedia Commons — CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0/ — archives du 21 septembre 2020, version réduite.

The project will use existing cleanrooms and move this production to 300-millimetre wafers. Infineon announces a start by the end of 2027, followed by a ramp-up aligned with demand. This is a planned timetable, not a facility already operating.

These components switch and convert electricity, with applications including data centres, energy infrastructure and electric mobility.

The European approval concerns an Austrian grant; it does not mean €319 million has been paid. Infineon says the Austrian ministry's formal funding commitment is still awaited. Associated commitments include broader cooperation with smaller businesses and researchers, as well as training activities.

Sources 3