Shortages of semiconductors and supply chain problems have prompted many companies and contract manufacturers to build new chip factories. However, Sabine Herlitschka, CEO of Infineon Technologies Austria, does not believe that this will lead to overcapacity. “There may be an oversupply in the short term, but that is immediately absorbed by the high demand,” she said on Friday.
Even if 30 to 40 new plants have been announced at this point, the lead time for building a new high-tech semiconductor plant is at least two to three years, Herlitschka said at the Salzburg Summit in the city of Salzburg. In addition, the availability of qualified construction companies and associated equipment would be “bottlenecks”.
Infineon expects demand to increase
On the other hand, Herlitschka continued to assume that demand would increase. “In the automotive and industrial sectors alone, growth is estimated at around ten percent.” The green transformation is also an important driver through the use of energy-efficient applications. The German semiconductor manufacturer only opened a new chip factory in Villach in 2021.
No easing is currently expected on the market itself. “Chip is not just any chip,” Herlitschka said. In many areas people are dependent on suppliers from Asia. The semiconductor industry will always remain global. “But where we have strengths in Europe, we have to start.” This is the case in areas such as automotive and industry, sensor technology, cybersecurity or energy efficiency applications.
Herlitschka demands speed from the EU with the “Chips Law”
At the same time, Herlitschka warned that the resolution on the EU’s “Chips Act” should be completed quickly. The EU wants to increase the market share of European manufacturers from the current 10 to 20 percent by 2030 with a package of 43 billion euros – according to krone.at. “At the same time, however, the semiconductor market will also double.” The “European Chips Act” is a correct, important step. “But what is well-intentioned must also become good.”
She sees the problem – certainly for smaller countries – that the expansion of production capacity must be financed nationally. The competition is not sleeping: The US passed its own “Chips Act” this week with a volume of $53 billion, and China is investing an estimated $150 billion in developing its own semiconductor industry by 2025.
Energy crisis: Infineon tests hydrogen and biogas
The supply of raw materials also remains problematic. Although Infineon depends on gas for only three percent of its total energy needs, it is process gas. “If there is no supply here, it will be difficult,” said the boss of Infineon Austria. That is why alternatives such as hydrogen or biogas are being investigated. Herlitschka also saw great potential in Africa to strengthen or develop partnerships. “However, to do this we need to see ourselves in Europe as a powerful player. The EU can then weigh heavily on shopping.”
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
