Brussels Signs Off on EUR 319 Million for Infineon's Villach GaN Plant as Deutsche Bank Calls Chip Selloff Overdone
Published on 11/02/2026 at 13:31 | Editorial boerse-global.de
Infineon has secured European Commission approval for EUR 319 million in state aid backing its planned gallium nitride (GaN) power semiconductor plant in Villach, Austria — a project carrying a total investment of roughly EUR 1.1 billion through 2034 and billed by the company as the world's first high-volume production of GaN power chips on 300-millimeter wafers.
The approval lands as the Munich-based group works to put last week's sector-wide slump behind it. European chip stocks, Infineon among them, fell sharply on Friday after Intel guided fourth-quarter 2026 revenue to between USD 15 billion and USD 16 billion, below analyst expectations. Reuters reported that worries over how major US technology companies will fund their artificial intelligence infrastructure added to the pressure, with investors fretting about the strain that heavy data-center spending by Amazon and Alphabet could place on free cash flow. Infineon shares dropped 4.5% in that session.
Deutsche Bank Pushes Back on the Selloff
By Saturday, Deutsche Bank had weighed in, arguing that the markdowns across European semiconductor names had gone too far. The broker named Infineon among five hardware stocks it rates as a buy. Shares responded on Monday with a 1.4% gain.
The Villach project remains on schedule, with production slated to begin at the end of 2027. Infineon announced the investment just over a week ago.
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Warstein Lab Adds R&D Capacity
Infineon's expansion is not confined to Austria. On Wednesday the company inaugurated a new office and laboratory building at its Warstein site, providing roughly 1,200 square meters of lab space for around 350 employees. GARBE Institutional Capital and BC Partners Real Estate served as project developers and investors, committing a mid-double-digit million euro sum.
Product Rollouts Target EVs, AI Servers
Alongside the manufacturing build-out, Infineon has kept up a steady cadence of product launches. On October 27 it brought its LinearFET MOSFET technology to market for power distribution systems in electric and software-defined vehicles, and also unveiled the ENDOPACK chip-embedding platform for traction inverters. That same day the company presented a reference design for a power distribution board that lets developers evaluate GaN-based high-voltage intermediate bus converters for 800-volt systems in AI data centers, as well as a reference design for enterprise AI servers.
The company had deepened its collaboration with NVIDIA on power supply architectures for AI data centers about two weeks earlier, focusing on GaN-based intermediate circuit voltage converters. On October 22, UnternehmerTUM Accelerator, Microsoft, Infineon and NVIDIA jointly launched the Physical AI Growth Lab, a program aimed at European start-ups in physical AI, robotics and industrial AI that runs from January to April 2027.
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Results Date Set
Infineon will report fourth-quarter and full-year 2026 results on November 10, with the release scheduled for 7:30 a.m. CET. The company lists the date as provisional in its financial calendar.
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