Munich-based Infineon is considering moving more of its production to the US, the FT reports. The future move would be made to comply with the Biden administration’s Inflation Reduction Act (IRA) — a $369 billion package of subsidies and tax breaks aimed at accelerating domestic production of green technologies, including semiconductors.
Infineon is one of the world’s largest suppliers of automotive silicon chips. It already has six factories in the US, in addition to eight in Asia and five in Europe, where Germany has three factories.
Peter Wawer, head of the chipmaker’s green technology division, told the FT that the company is reviewing the IRA’s requirements related to the value of goods manufactured in the country.
Waver said Infineon is happy with its current value share, but needs to ensure that this percentage doesn’t exclude it from doing business and that it “might need to transfer some amount of product or some additional manufacturing to the US.” .”
Meanwhile, Intel’s long-awaited chip factory in Germany is on the line after the federal government refused to provide additional state funding for the project. If Germany and Intel fail to reach an agreement, Europe will lose its expected largest semiconductor facility.
Attracting foreign chipmakers to the continent, while incentivizing domestic manufacturers to expand production capacity within the bloc, is a key element of the EU’s strategy to boost its semiconductor industry – but it doesn’t seem to like it will be an easy task.