Infineon opens Austrian power-chip plant ahead of schedule

Infineon Technologies opened a 1.6 billion euro ($1.9 billion) plant in Austria on Friday, boosting the German semiconductor company’s ability to supply power chips for cars, datacenters and renewable power generation.

The plant in Villach, ready three months early, will make chips on 300 mm wafers thinner than a human hair, operating in tandem as a ‘megafab’ with an existing plant in Dresden, Germany and adding up to 2 billion euros a year in revenues.

Infineon is adding capacity at a time when global semiconductor supply chains are under extreme stress, with most leading carmakers being forced to idle production due to chip shortages.

Munich-based Infineon, the leading supplier to the auto industry, has itself faced problems meeting delivery commitments after a winter storm knocked out a plant in the United States and coronavirus lockdowns disrupted operations in Malaysia.