Daily Management Review

German Chipmaker Infineon Technologies Is Expanding in China Despite of the Slowdown in the Economy


10/13/2015


German chipmaker Infineon Technologies announced plans to build a second plant in China near Shanghai. About $ 300 million will be spent on the plant’s construction.



Rufus46
Rufus46
After the launch, the company will employ 2.5 thousand locals, and its area will amount to nearly 36 thousand sq. m. According to preliminary information, the plant will be completed by the end of 2016. Recall that the first company’s venture located in Beijing with 1.8 thousand employees.

The German chipmaker came to the Chinese market in 1995. The proximity of production to the main sales market is paid out. Last year, a fifth of Infineon’s revenue came from the Chinese market.

In addition to the traditional products used by Chinese entities LG and Samsung, Infineon is going to produce solutions for the Internet of Things - compact systems with a high degree of integration and a variety of sensors that can transmit information wirelessly with low energy consumption.

Infineon in China not only works with local developers and scientists, but also provides consulting services for the automation of production processes. The presence of leading enterprises in the region allows local producers to apply the experience of foreign colleagues on a legal basis.

It is worth noting that China now accounts for more than half of the total consumption of microelectronic products. The year before, the country has spent on the chips more than on oil.

The slowdown of the Chinese economy not confuses foreign investors. In addition, the Chinese authorities have shown interest in Western technology, what gives a new impetus to the "home" of the microelectronics industry.

In 2014, Infineon's revenue jumped 12% compared to a year earlier and reached 4.3 billion euros, which allowed the company to enter the top three largest European semiconductor manufacturers along with STMicroelectronics and NXP. About 40% of Infineon’s revenue is brought by automotive chips, on which the German company intends to focus, making acquisitions in the future.

At the end of the II quarter of 2015 fiscal year, Infineon's revenue amounted to 1.48 billion euros against 1.13 billion euros a year earlier. Adjusted revenue, which excludes currency fluctuations and the purchase of International Rectifier, grew from 9% in the second financial quarter.

source: eetimes.com