High stakes in the chip shortage
Infineon opened its latest €1.6bn 300mm chip fab in Austria this morning to tackle the chip shortage

The chip shortage and Covid-19 is driving up chip costs says Reinhard Ploss, CEO of Infineon Semiconductors, but analysts warn of over-capacity and a price crash in 2023.

“We are not a company that plays poker and says it you need more chips you have to pay twice the price,” said Reinhard Ploss, CEO of Infineon at the opening of its latest semiconductor fab this morning. “We have increasing costs from the supply sector and higher investments and these increased costs are reflected in the costs for the customer.”

The opening of Infineon’s new 300mm fab in Villach today with the Chancellor of Austria is a prime example of the challenges of the semiconductor industry and the increasing importance of the semiconductor industry. The go-ahead for the €1.6bn project was given in 2018, long before Covid-19, and it opened ahead of schedule, right at the heart of the chip shortage.

The fab at Villach is producing silicon IGBT and MOSFET power devices on 300mm wafers for mainstream cars as well as electric vehicles and wind and solar power applications.