Infineon announces new high-volume GaN facility; neutral for IFX, mild positive for AIXA

Infineon (OW) announced an investment into a high-volume, 300mm Gallium Nitride power semiconductor facility in Villach, Austria. The €1.1b investment is spread through to 2034 and makes use of existing clean room capacity in Villach, with production scheduled to start by the end of 2027. The investment has received support from the European Chips Act, with the European Commission approving €319m of state aid, implying a net investment for Infineon of ~€800m. J.P. Morgan views the announcement as a positive sign of Infineon's intention to maintain a leadership position in GaN, in particular in data center applications, with the associated capex likely within its guidance envelope, making the news neutral for IFX. For Aixtron (OW), the announcement is a positive signal of future industry-wide capacity additions, although GaN orders are not expected to materially change in Q3'26;