Infineon CEO Demands Customer Commitments for Capacity Expansion

Infineon CEO Jochen Hanebeck stated on Monday that the German chipmaker requires firm commitments from customers to justify further expansions of its semiconductor production capacity. Speaking at an industry event before the electronica trade fair in Munich, Hanebeck argued that chipmakers cannot shoulder the financial risks of expansion alone while investing heavily in research and production.

Hanebeck emphasized that government support remains essential for attracting investment in Europe. However, he noted that current European support does not yet create a "level playing field" compared to other regions, stating, "There are limits to what we can shoulder."

The company has recently increased its European footprint, opening a €5 billion semiconductor factory in Dresden, Germany, in July. In October, Infineon announced an additional €1.1 billion investment in gallium nitride chip production in Villach, Austria.