Infineon Opens State-of-the-Art Factory for Chips for Power Electronics Using 300mm Thin Wafers

17 September 2021, Munich (Germany)

Infineon Technologies (FSE: IFX / OTCQX: IFNNY) has officially opened a state-of-the-art chip factory for power electronics using thin 300mm wafers at its Villach site in Austria under the slogan "Ready for Mission Future". did. With an investment of EUR 1.6 billion, it will be one of the largest investment projects in the semiconductor sector in the European microelectronics sector. The Villach plant is one of the most advanced fabs in the world and has been supported by Infineon CEO Reinhard Plos, Infineon Austria CEO Sabine Herlitschka and EU Commissioner Thierry Breton. ), inaugurated by Sebastian Kurz, Chancellor of Austria.

Infineon set an early target for long-term and profitable growth and in 2018 announced the construction of a chip factory for power electronics.

Reinhard Plos, CEO of Infineon, said: "The new fab is a milestone for Infineon and its opening is very good news for our customers. Given the growing global demand for power semiconductors. , there is no better time than now to set up new production capacities in Europe.In the last few months, it has become clear how essential microelectronics is to all areas of life. As electrification accelerates, demand for power semiconductors is expected to continue to grow, and this increase in production capacity will lead to improved long-term service to customers around the world."

The global state of the semiconductor market underscores how important investments in innovative key technologies are for the future. Today, microelectronics is a key technology that underpins the digitization of developments, systems and technologies. With the expansion of its production base, Infineon promotes an important industrial policy of reliable supply for the European industry and the world market.

First products shipping now

After three years of preparation and construction, the plant began operations in early August, three months ahead of schedule. The first wafers leave the Villach facility this week. These chips are primarily used in end products such as automobiles, data centers, and renewable energy generation from solar and wind. For the Infineon Group as a whole, the new plant has the potential to increase annual sales by around €2 billion.

Semiconductors manufactured in Villach are used in a wide variety of applications. The new plant will enable Infineon to serve the growing market for power semiconductors used in end products such as electric vehicles, data centers, solar and wind energy. A simple calculation shows that the plant's annual production capacity for industrial semiconductors is sufficient to equip a solar system with a total power generation of about 1,500 TWh, which is more than Germany's annual electricity consumption. Equivalent to about three times.

Energy-saving chips for green products

Infineon's products have been contributing to energy efficiency and thus climate protection for many years. Infineon's Villach plant is central to the supply of power electronics and plays a key role in these solutions. These energy-saving chips intelligently switch power to minimize CO2 emissions in many applications. It also reduces energy consumption in home appliances, LED lighting, mobile devices, and more. For example, modern semiconductors can reduce the energy consumption of refrigerators by 40%. The energy consumption used for building lighting is reduced by 25%. More than 13 million tonnes of CO2 emissions can be avoided through the operation of new production facilities and the variety of products produced there. This is equivalent to the amount of CO2 emitted by more than 20 million people living in Europe.

Energy efficient factory

Further improvement of the energy balance was a key point in the construction of the factory. Intelligent recycling with waste heat from the cooling system will cover 80% of the heating needs of the premises, saving around 20,000 tons of CO2 annually in the future. It also makes effective use of exhaust cleaning systems to bring direct emissions to near zero.

Another breakthrough in terms of sustainable production and circular economy is the production and recycling of green hydrogen. The hydrogen required for the production process will be produced at this plant directly from renewable energy sources from early 2022. This reduces CO2 emissions during manufacturing and transportation. This green hydrogen will be recycled after being used in chip manufacturing and used as fuel for public transportation buses. This kind of dual use of green hydrogen is a unique initiative even in Europe. Initiatives such as these will contribute significantly to the Infineon Group's goal of becoming carbon neutral by 2030.

Two advanced European chip factories form a megafactory

The total floor area of the new chip factory is approximately 60,000m², and we plan to gradually increase production over the next four to five years. In addition, more than two-thirds of the 400 specialists needed to run the plant have already been hired.

The chip factory is one of the most advanced in the world, with full automation and digitalisation. As a “learning factory,” an AI (artificial intelligence) approach is mainly used for predictive maintenance. By networking the factory, you can use a large amount of data and simulations to know the timing of maintenance at an early stage.

Infineon is looking one step further. Jochen Hanebeck, Member of the Management Board and Chief Operations Officer of Infineon, said: "Infineon now has two large-scale power semiconductor manufacturing sites in Dresden and Villach, handling 300 mm thin wafers. Both sites are based on the same standardized production and digitalization concept, which allows us to control the manufacturing operations of the two sites as if they were one factory. and create more flexibility for our customers, because we can quickly adjust the production volumes of different products between sites and respond more quickly to customer needs.Infineon has a virtual megafactory that enables 300mm manufacturing We will create a new standard for the use of our products, which will enable us to be even more resource and energy efficient and have a lower environmental impact.”

Pioneer of 300mm thin wafer technology and power electronics

Chips produced at this factory are made on 300mm wafers, 40 micrometers thinner than a human hair. Villach is the power semiconductor core of the Infineon Group and for many years has been an important innovation center of Infineon's manufacturing network. About ten years ago, the technology for manufacturing power semiconductors on 300 mm thin wafers was developed here and scaled up to fully automated mass production in Dresden. This technology makes it possible to increase the diameter of wafers, greatly improving productivity and reducing capital investment.