Infineon seeks customer commitments for further chip capacity expansion in Europe
Amid continued heavy spending on semiconductor manufacturing and research, Infineon says it cannot justify additional production capacity without firmer backing from customers. The stance highlights the financial pressure on chipmakers even as Europe pushes to expand domestic semiconductor output with public support.
Highlights
- Infineon CEO Jochen Hanebeck states further chip capacity expansion in Europe depends on customer commitments due to financial risk concerns.
- Infineon opened a €5 billion semiconductor factory in Dresden in July and announced a €1.1 billion gallium nitride chip investment in Villach in October.
- Hanebeck emphasizes government support is crucial but says European incentives remain less competitive than other regions for semiconductor investment.
Capacity expansion conditions in Europe
As reported by Reuters, Infineon Chief Executive Jochen Hanebeck says the German chipmaker needs commitments from customers before it brings further semiconductor production capacity online. Speaking at an industry event ahead of the electronica trade fair in Munich on Monday, he says chipmakers are already investing heavily in production and research but cannot carry the financial risks of expansion on their own.Hanebeck says there are limits to what the company can shoulder, and adds that customer commitments are definitely needed to justify additional capacity. His comments point to a more cautious approach to new chip investment, even as demand for regional supply resilience remains a priority for European industry and policymakers.
Recent investments and policy support
Infineon opened a new 5 billion euro semiconductor factory in Dresden, Germany, in July. In October, it also announced plans to invest around 1.1 billion euros in gallium nitride chip production in Villach, Austria.Hanebeck says government support remains essential for attracting semiconductor investment. He cites economies of scale, existing engineering expertise and public funding as reasons Infineon continues to expand its European factories, while arguing that support in Europe still does not match conditions offered in other regions.
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