Infineon says it can meet chip demand with new Austrian plant

German chipmaker Infineon said it was expanding its production capacity to help address global supply shortages, and would be able to meet the needs of its customers in the long term.

CEO Reinhard Ploss said Infineon’s new plant in Villach, Austria, due to open in late summer, would be capable of producing enough power semiconductors each year to equip the drive trains of 25 million electric vehicles.

A semiconductor supply crunch has forced carmakers like Volkswagen, Ford and General Motors to idle production after the chip market was swept clean by demand for higher-margin consumer electronics.

Analysts say that supply of automotive products like microcontrollers will remain tight until mid-year as chipmakers adjust to demand that has snapped back since the outbreak of the coronavirus pandemic last spring.

Via Reuters