A New Standard in Chip Production
Green hydrogen is entering the semiconductor industry – combining climate strategy, technical purity requirements, and supply security into a new industrial standard.
A flagship example is the Infineon plant in Villach, where, together with Linde, a 2-megawatt electrolysis plant has been built. Since August 2025, it has been covering the site’s entire hydrogen demand directly on-site.
The hydrogen is produced via electrolysis using renewable electricity, replacing the previously truck-delivered gray hydrogen from fossil sources. This reduces CO₂ emissions, eliminates transport risks, and strengthens long-term supply security.
Ultra-High-Purity: Technological Precision at the Highest Level
In semiconductor manufacturing, hydrogen is a key process gas – but it must meet extremely high purity standards. “Ultra-High-Purity” (UHP) hydrogen has a purity of at least 99.999%, and sometimes even higher.
After electrolysis, the hydrogen undergoes multi-stage purification processes to eliminate every trace of contamination. Even tiny particles or gas impurities could alter the electrical properties of chips and lead to costly scrap production.
Areas of Application in Wafer Production
Hydrogen plays a critical role at several stages of chip fabrication:
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During annealing at around 1,000 °C to remove oxides.
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In epitaxy, where hydrogen acts as a reducing agent to deposit ultra-pure layers.
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In deposition processes, to stabilize the chemical environment.
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To stabilize process chemicals and maintain constant purity.
While the amount of hydrogen used per chip is small, process quality depends crucially on the purity and reliability of the hydrogen used.
Sustainability as a Strategic Decision
The Villach site’s annual requirement of around 290 tons of hydrogen is exactly the amount produced by the new on-site plant. This makes the facility completely independent from external deliveries. Since mid-2025, production has been running stably, and chip manufacturing has been fully converted to green hydrogen.
Balancing Economic and Climate Benefits
Despite higher investment costs, Infineon sees clear advantages:
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Climate neutrality and achievement of internal CO₂ goals.
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Independence from global supply chains.
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Long-term supply security.
Although green hydrogen is currently more expensive than fossil hydrogen, its cost impact per chip remains moderate. At the same time, quality, safety, and sustainability all improve – a triad that is becoming increasingly important in the high-tech industry.
Growing Markets for Ultra-Pure Hydrogen
- The market for high-purity hydrogen in electronics manufacturing is growing rapidly. Studies predict an annual growth rate of around 9% and a market volume of roughly 250 million USD by 2030.
As global semiconductor production expands – driven by digitalization, electromobility, and artificial intelligence – demand will continue to rise. Economies of scale and technological progress in electrolysis will further reduce costs in the future.
Quality Assurance as a Success Factor
If Infineon expands its production capacity, scaling up the electrolysis plant would be both technically and economically feasible – a logical next step for the site’s future.
Connection to our Portfolios: Green Tech & Hydrogen
The Infineon Villach project exemplifies the intersection of two core areas within our investment expertise at Global Strategic Capital AG:
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The Hydrogen Portfolio, which focuses on technologies, infrastructures, and business models that enable hydrogen as a sustainable energy carrier.
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The Green Tech Portfolio, centered on industrial applications that combine ecological responsibility with technological excellence.
The use of green hydrogen in semiconductor manufacturing unites these two worlds – demonstrating how decarbonization and digitalization together can set new industrial standards.
Political Frameworks as Accelerators
Subsidy programs, guarantees of origin for green electricity, and clear regulatory frameworks will determine how fast this transformation takes hold globally. But one thing is already clear:
Green hydrogen is more than an energy carrier – it is a key process material of the future.
Infineon and Linde have set the starting point in Villach – an example of how sustainability, technology, and competitiveness can go hand in hand.
Conclusion
The use of green hydrogen in semiconductor manufacturing marks the beginning of a new era: technological precision meets ecological responsibility.
What is already a reality in Villach could soon become the global benchmark for sustainable, secure, and future-oriented chip production – showing how Green Tech and Hydrogen together are shaping industrial transformation.
Recommended Sources
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Green hydrogen in semiconductor manufacturing (H2 View) – A current overview of green hydrogen in the semiconductor industry.
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Sustainable hydrogen supply for Infineon Austria (Infineon AG) – A case study on the 2 MW electrolysis plant at the Villach site.
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Hydrogen Gas: Revolutionizing Semiconductors and Clean Energy (Entegris Blog) – Technical insights into ultra-high-purity hydrogen and process gas applications.
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Hydrogen in electronics: Growing applications and consumption (Linde PDF) – A background paper on hydrogen’s role in electronics and semiconductor manufacturing.