European chipmakers see robotics and physical AI as growth opening for Europe

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Highlights

Infineon, STMicroelectronics, and NXP executives told a Munich gathering that Europe's strengths in automotive and industrial tech position it for AI and robotics growth.
STMicroelectronics has installed Italy's Oversonic humanoid robot in its Malta plant, marking early adoption as factory AI deployment remains limited to pilot trials.
NXP noted the critical importance of safe, reliable chip and system design in robotics and industrial AI, as European firms compete with Texas Instruments and onsemi.

Munich gathering highlights Europe's industrial AI push

As reported by Reuters, the chief executives of Infineon, STMicroelectronics and NXP tell an industry gathering in Munich that Europe is well placed to compete in robotics and physical AI. They argue that the region's established strengths in automotive and industrial technology give it a solid base as AI applications expand into robots, vehicles and factory equipment.

The executives say demand is set to grow for chips and systems that can operate safely and reliably in real-world settings. That shift is creating opportunities for suppliers of power semiconductors, sensors and microcontrollers, areas where the three European groups already have strong positions.

Infineon CEO Jochen Hanebeck says industrial AI, or physical AI, is a "must win" for Europe. He says the region still trails others in several fields, but sees this segment as one where Europe can strengthen its competitive position.

Factory use cases and competitive implications

STMicroelectronics CEO Jean-Marc Chery says physical AI will require close cooperation between chipmakers and customers, including the use of AI-simulated environments to train robots before they are deployed. The comment points to a development model in which semiconductor groups play a larger role in integrating AI into industrial operations.

ST has already agreed to introduce humanoid robots from Italy's Oversonic into its factories, and the first unit is installed at a semiconductor plant in Malta. Even so, adoption remains at an early stage, with factory trials still more common than broad deployment across production sites.

NXP CEO Rafael Sotomayor says Europe's historical strengths support the development of safe and reliable systems as AI moves from generating recommendations to taking physical action. He says the stakes are higher in robotics and industrial machinery because errors can cause irreversible harm, increasing the value of dependable chip and system design as European groups compete with U.S. rivals such as Texas Instruments and onsemi.

Earlier, we reported that Wipro’s second-quarter revenue beat expectations as European client spending revived and AI services added new revenue streams.

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