LONDON — Aiming to address growing demand for power semiconductors, Infineon Technologies AG announced today an investment of around €1.6 billion (about $1.88 billion) over six years on a new 60,000-square-meter fab.

The fully automated 300-mm fab will be located in Villach, Austria, alongside Infineon's existing production facility. It is expected to begin production in 2021.  

Reinhard Ploss, Infineon's CEO, said through a statement that global megatrends such as climate change, demographic change and increasing digitization are driving an increase in demand for power semiconductors. "Electric vehicles, connected and battery-powered devices, data centers or power generation from renewable sources require efficient and reliable power semiconductors," Ploss said.

Visualization shows Infineon's new power semiconductor fab in Villach, Austria. Source: Infineon
Visualization shows Infineon’s new power semiconductor fab in Villach, Austria.
Source: Infineon

Villach is Infineon's competence center for power semiconductors. Manufacturing of power semiconductors on 300-millimeter wafers was developed in Villach and then expanded into another fab in Dresden, Infineon's main location for Infineon's front-end wafer processing.

Infineon said the new Villach fab would create about 400 new jobs and begin construction in the first half of next year.

Infineon is the world's largest provider of power semiconductors with global market share of about 18.5 percent, according to market research firm IHS Markit.

— Nitin Dahad is a European correspondent for EE Times.