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The billion-euro investment made by one of the leading global semiconductor companies represents one of the largest projects in the microelectronics sector in Europe.

Infineon Technologies officially opened its 60,000 m² wide high-tech chip factory claimed to be one of the most modern in the world. Designed based on full automation and digitization, this new plant located at the Villach site in Austria will produce power electronics on 300-millimeter thin wafers.

“The new fab is a milestone for Infineon, and its opening is very good news for our customers,” Infineon CEO Reinhard Ploss said. “The timing to create new capacity in Europe could not be better, given the growing global demand for power semiconductors. The last few months have clearly shown how essential microelectronics are in virtually every area of life. Given the accelerated pace of digitalization and electrification, we expect demand for power semiconductors to continue to grow in the coming years. The additional capacities will help us serve our customers worldwide even better, including long term.”

After three years of preparation and construction, the factory was commissioned ahead of schedule at the beginning of August. This week, the first wafers are set to leave the Villach plant. The energy-saving chips will primarily be used to meet demand from the automotive industry, data centers, and renewable energy generation of solar and wind power.

The announcement of this high-tech chip factory launch follows the 2021 State of the Union Address where the president emphasized the aim of creating a state-of-the-art European chip ecosystem. “There is no digital without chips,” said president Ursula von der Leyen.

Accordingly, she pointed out that while the global demand for semiconductor chips has exploded, Europe's share across the entire value chain, from design to manufacturing capacity has shrunk. On the other hand, Asian competitors such as Samsung and TSMC also fight for dominance in this market.

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