Infineon CEO wants EU chip plants to decrease reliance on Asia

Infineon CEO wants EU chip plants to decrease reliance on Asia

Reuters reports that Infineon CEO Jochen Hanebeck supports contract manufacturers developing new European semiconductor plants to decrease his company’s dependency on Asian suppliers.

About 15 percent of the German chipmaker’s production components currently come from Taiwan. In an interview with Reuters, CEO Hanebeck said his company would welcome the establishment of more capacity in Europe, adding that he was particularly interested in chips with dimensions ranging from 28 to 12 nanometers.

Infineon plans a plant in Dresden

Under the European Chips Act, the European Commission has set aside €15 billion for public and commercial semiconductor initiatives by 2030. The Commission wants to use the money to quadruple Europe’s share of the highly competitive semiconductor industry by 2030.

Taiwan’s TSMC, the world’s largest contract manufacturer, has previously said that no decision on a European facility has been taken so far, adding that the possibility isn’t being ruled out. On Monday, Infineon announced plans to build a €5 billion facility in the German city of Dresden to enhance its 300-millimeter production capacity.

Reliance on government funding

Hanebeck stated that the company relies on governmental backing for the Dresden facility, adding that while a financial decision has yet to be made, he has gotten political signals.

On Tuesday, the economy ministry stated that it would immediately investigate the financial prospects of the project proposed by Infineon. The government ultimately decides on state assistance and subsidies.

Infineon will propose answers to today’s greatest chip industry challenges at ‘electronic Munich 2022’, a conference taking place from the 15th of November through the 18th of November. The company claims it is a critical component for a better, climate-neutral future.