Finance
Infineon Executive Urges Europe to Build Larger, Automated Fabs
Published by Global Banking & Finance Review®
Posted on March 17, 2026
2 min readLast updated: March 17, 2026
Quick Summary
Infineon’s VP urges Europe to invest in larger, automated 300 mm fabs to improve scale and efficiency amid fast-growing Chinese competition in power and analog chips. He emphasizes leveraging automation in existing and new plants to bolster Europe’s semiconductor resilience.
Infineon: Europe Needs Larger, Automated Fabs to Compete in Semiconductors
Europe's Semiconductor Industry Faces Rising Competition and Calls for Modernization
By Nathan Vifflin
Infineon Executive Highlights Urgency at Industry Conference
SOPOT, Poland, March 17 (Reuters) - Europe's semiconductor industry must invest in more automated and larger 300-millimeter wafer fabs to counter growing competition from Chinese rivals in power and analog chips, an Infineon Technologies executive said last Friday.
Speaking at a conference for semiconductor industry executives in Poland, Thomas Altenmueller, Vice President Manufacturing Analytics at Infineon, said that Chinese manufacturers were rapidly gaining capacity and expertise in areas historically dominated by European chipmakers.
Chinese Manufacturers Accelerate in Power and Analog Chips
"They are learning fast. They have the capacity," Altenmueller said. "It is super serious."
Altenmueller said the shift toward power and analog chips by Chinese companies was pushed by export restrictions on more advanced semiconductor tools like ASML's EUV lithography machines.
Europe Must Scale Up and Consolidate Operations
EUROPE MUST SCALE UP AND CONSOLIDATE OPERATIONS
Automation and Modern Fabs as Key Strategies
Europe must scale up and consolidate its operations, utilising automation, particularly with modern 300-millimetre wafer fabs to increase economy of scale and lessen the impact of higher labour costs, Altenmueller said.
Automating Older Fabs: STMicroelectronics' Approach
At the same conference, executives from STMicroelectronics laid out plans for automating older fabs that cannot be fully modernised, deploying robots to increase efficiency.
Market Share and Growth Potential in Power Delivery Chips
While Europe's semiconductor firms lack market share in AI accelerators, which are dominated by Nvidia, Samsung and TSMC, Altenmueller said energy-efficient power delivery chips, crucial for managing the rising energy demands of data centers, had vast growth potential.
European Union Policy and Future Outlook
The Chips Act and Its Impact
The European Union's first Chips Act aimed to increase the bloc's share of global chip production from 10% to 20% by 2030. It primarily focused on new projects and "first-of-a-kind".
Importance of Existing Profitable Plants
Altenmueller said Europe's existing profitable plants should not be overlooked, as they remain essential to its global competitiveness.
The EU is now working on a refreshed Chips Act 2.0.
Europe's Traditional Strengths Remain Vital
"Europe's competitiveness ultimately resides in its traditional industrial strengths in automotive and industrial chips," Altenmueller said. "Don't forget our strengths."
(Reporting by Nathan Vifflin; Editing by Matt Scuffham)
Key Takeaways
- •Europe must invest in larger and more automated 300‑mm wafer fabs to enhance economies of scale and counter Chinese gains.
- •Automation upgrades—especially in older fabs—are vital to offset high labor costs and boost output efficiency.
- •While the EU aims to double its semiconductor market share to 20% by 2030 via the Chips Act, current projections suggest it may reach only around 11.7%, underscoring the need for Chips Act 2.0.
Frequently Asked Questions about Infineon executive urges Europe to build larger, automated fabs
1Why is Infineon calling for larger, automated semiconductor fabs in Europe?
Infineon believes larger, automated fabs are needed to boost efficiency and counter China's growing capacity in power and analog chips.
2What challenges is the European semiconductor industry facing?
European chipmakers face rising competition from China and must address higher labor costs and increased automation to remain competitive.
3How is the EU responding to the global chip competition?
The EU implemented the Chips Act and is working on Chips Act 2.0 to increase global market share and support new and existing fabs.
4What specific semiconductor segment does Europe have strength in?
Europe has traditional strengths in automotive and industrial chips, particularly power and analog chips.
5What role does automation play in Europe’s semiconductor strategy?
Automation helps European fabs increase efficiency and scale, reducing the impact of higher labor costs and boosting competitiveness.
