Another story about all the eggs in one basket from the management of Infineon.
Infineon Technologies Marketing Director Helmut Gassel in an interview Nikkei Asian Review explained why companies and authorities in individual countries are beginning to realize the importance of geographic diversification in the production of semiconductor components. The old adage about the need not to put all your eggs in one basket eloquently illustrates the current principle of the development of the modern semiconductor industry.
Image Source: AP
The turnover of this sector of the economy, according to a member of the board of directors of Infineon, has reached such proportions that the effect of reducing costs from the concentration of production on one continent is leveled by potential risks of its violation. One incident is enough to paralyze the work of enterprises for several months, and therefore Infineon approves the desire of the authorities in different regions to develop local chip production.
Infineon is the largest supplier of semiconductor components to the automotive industry and controls a significant portion of the power electronics market. It produces part of the products on its own, the rest is trusted to produce contractors. The latter, she said, will not be able to meet industry demand for chips until the end of 2022, at best. At the same time, the market does see a decrease in interest in PCs, smartphones and TVs, according to an Infineon representative, but the same automotive sector is showing a long-term structural change in demand, which will require an increase in the production of core products.
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By the end of March, the company had already taken orders for 37 billion euros, and more than half of them were related to the automotive industry. About three-quarters of these orders Infineon will be forced to satisfy over the next 12 months.