At the grand opening of Infineon's power IC manufacturing facility in Malaysia, CEO Jochen Hanebeck highlighted Asia's important role in driving the fast-growing demand for chips in the artificial intelligence (AI) and automotive industries. According to Hanebeck, Southeast Asian countries, including Malaysia, Viet Nam and Indonesia, as well as India and Taiwan, are critical to Infineon's continued growth and technological innovation. He believes that the market dynamism and development potential of these regions will bring new growth opportunities for the company and strengthen its leadership position in the global semiconductor industry.
1. the criticality of the Asian market
Huge market demand: Asia, especially China, India, Southeast Asia and other regions, has a huge market demand, and there is a huge demand for Infineon's products, especially automotive chips, power semiconductors and microcontroller chips. These products are widely used in various fields such as mobile phones, automobiles, and industry.
Growth in the field of electric vehicles and AI: With the rapid development of electric vehicles and artificial intelligence (AI), there is a growing demand for these key technologies in the Asian market. As a leading chip manufacturer, Infineon's products offer significant advantages in these areas.
2. Manufacturing and R&D layout
Complementary manufacturing base in Southeast Asia: Southeast Asia, including Malaysia, Viet Nam, Indonesia, etc., complements Infineon's European manufacturing base. Infineon has launched a state-of-the-art silicon carbide (SiC) chip production plant in Malaysia and plans to further expand production capacity. These initiatives contribute to strengthening Infineon's supply chain resilience worldwide.
Expansion of R&D team: Infineon is also expanding its R&D team in Viet Nam, India and Taiwan to strengthen its R&D capabilities in new technologies and products. The R&D strength and innovation environment in these regions provide Infineon with continuous technical support and market insight.
Picture: Infineon's CEO said that Asia is important for chip development (Source: Nikkei)
3. Considerations for supply chain resilience
Localization and diversification of production: In response to the global focus on supply chain resilience, Infineon is actively promoting localization and diversification of production. For example, in Chinese mainland, Infineon has established partnerships with several silicon carbide substrate suppliers to implement a "dual source" strategy to enhance the flexibility and stability of the supply chain.
Economies of scale: Infineon focuses on achieving economies of scale as part of its expansion. The reason why Malaysia has become one of the important bases for chip production is that the local chip packaging industry chain has matured to provide favorable conditions for achieving economies of scale.
4. the demand continues to grow
Despite the current uncertainties in the global market and the technology industry, Infineon believes that demand is gradually picking up in various industries. In particular, Infineon expects significant growth in the areas of e-mobility and AI.
Technological innovation and leadership: As one of the world's largest suppliers of automotive chips, power semiconductors and microcontroller chips, Infineon will continue to focus on technological innovation and product development to maintain its leading position in the industry.
