Infineon Technologies AG will invest €1.6 billion (US$1.9 billion) to build a new factory for power semiconductors. A fully automated chip factory for manufacturing 300-millimeter thin wafers will be constructed at the Villach location in Austria alongside the existing production facility.
Construction is scheduled to start in the first half of 2019 and production is expected to commence at the start of 2021. The additional sales potential of the new factory, given full capacity utilization, is put at around €1.8 billion (US$2.1 billion) a year.
Global demand for power semiconductors is soaring. As the market and technology leader, Infineon is particularly sought-after by customers and is even growing more strongly than the market. Growth is underpinned by global megatrends such as climate change, demographic change and increasing digitization. Electric vehicles, connected and battery-powered devices, data centers or power generation from renewable sources require efficient and reliable power semiconductors. We recognized that trend early on and so are rapidly expanding production capacities for 300-millimeter technology at our Dresden location. The new facility at Villach will help us cater for the growing demand that our customers anticipate, and continue on our path to success in the coming decade. Backed by the unique expertise we have built at our locations in Europe, we as a global company can strengthen our position on the world market long term—Dr. Reinhard Ploss, CEO of Infineon
Villach is the group’s competence center for power semiconductors and has long been an important site for innovation in Infineon’s production network. Manufacturing of power semiconductors on 300-millimeter thin wafers was developed here and then expanded into fully automated high-volume production at the Dresden location over the past years. Due to the larger diameter of the wafers, this technology delivers significant gains in productivity and reduces working capital.
Dresden is Infineon’s largest site for wafer processing (frontend) and 300-millimeter production capacities there are expected to be fully utilized by 2021. Infineon will apply the automation and digitization concepts from Dresden at the new Villach factory and develop them together with the two locations in order to increase productivity and ensure synergies in relation to systems and processes at both.
According to market researchers from IHS Markit, Infineon is the world’s largest provider of power semiconductors and has a market share of 18.5%.