Brussels Backs Infineon's Villach GaN Bet as Enphase and Wolfspeed Deals Broaden the Power Portfolio

Published on 10/29/2026 at 02:50 | Editorial boerse-global.de

European Commission approves EUR 319 million Austrian state aid for Infineon's Villach GaN expansion, with production set to begin at the end of 2027.

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The European Commission has cleared Austria's EUR 319 million state aid package for Infineon's Villach expansion, removing the final regulatory hurdle from a project the chipmaker says will host the world's first high-volume production of GaN power semiconductors on 300-millimeter wafers. The approval, reported by media outlets, covers the build-out of high-volume GaN manufacturing at the site and comes under the European Chips Act framework. Infineon shares added 1.1% on the day of the announcement.

The funding underpins a broader commitment: roughly EUR 1.1 billion in investment through 2034, directed at existing cleanroom capacity in Villach rather than new construction. Production is slated to begin at the end of 2027, giving the project an investment horizon that stretches well beyond first output.

Gallium Nitride at the Center of the AI Power Stack

GaN technology also anchors Infineon's expanded collaboration with NVIDIA, announced on October 21. The two companies are developing GaN-based intermediate bus converters for DC architectures in AI data centers, engineered for 800 V systems and targeting racks drawing up to 1 MW. A phased rollout is planned from 2027.

That partnership is not the only data-center thread. On Monday, Infineon and Enphase Energy unveiled 900 V GaN bidirectional switches for solid-state transformers in AI data centers. According to Infineon, the components have already been tested and are being integrated into development builds. The news lifted the stock 2.3% in the following session. On Tuesday the company also presented an M-CRPS reference design for enterprise servers and edge AI, rated at 5.6 kW with peak efficiency above 98%.

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Infineon plans to showcase its AI infrastructure technologies at electronica, alongside Physical AI, robotics and mobility themes. The trade fair runs from November 10 to 13, with the company's participation announced on October 14.

Silicon Carbide Supply Secured Through Wolfspeed

On the silicon carbide side, Infineon and Wolfspeed agreed on October 15 to multi-year wafer deliveries. The arrangement supports Infineon's shift from 150-millimeter to 200-millimeter SiC production and is intended to strengthen supply chain resilience.

Automotive power distribution got its own addition on Tuesday, when Infineon introduced LinearFET MOSFETs for power distribution systems in electric vehicles and software-defined cars.

Infineon at a turning point? This analysis reveals what investors need to know now.