German chipmaker Infineon is considering moving more of its production to the US to comply with the Inflation Reduction Act (IRA) launched by President Biden. The $369bn package of subsidies and tax incentives aims to accelerate domestic production of green technologies, including semiconductors. Infineon is one of the world’s largest silicon chip suppliers for the automotive industry and already operates six factories in the US, eight in Asia, and five in Europe. The chipmaker may need to transfer some product or manufacturing to the US to meet the IRA’s requirements associated with the value of goods manufactured in the country.
Peter Wawer, head of Infineon’s green technology division, stated that the company is satisfied with its current share of value but wants to ensure that the percentage doesn’t exclude it from business. Meanwhile, Intel’s new chip plant in Germany hangs in the balance after the federal government refused to provide extra state funding. This refusal has jeopardized Europe’s expected largest semiconductor facility. The EU’s strategy to boost its semiconductor industry is to attract foreign chipmakers to the continent while incentivizing domestic ones to expand their production capacity within the bloc. However, it is uncertain how successful this strategy will be.
Frequently Asked Questions (FAQs) Related to the Above News
What is Infineon?
Infineon is a German chipmaker that supplies silicon chips to the automotive industry.
Why is Infineon considering moving more of its production to the US?
Infineon is considering moving more of its production to the US to comply with the Inflation Reduction Act (IRA) launched by President Biden, which aims to accelerate domestic production of green technologies, including semiconductors.
How many factories does Infineon operate worldwide?
Infineon operates six factories in the US, eight in Asia, and five in Europe.
What may Infineon need to do to meet the IRA's requirements associated with the value of goods manufactured in the US?
Infineon may need to transfer some product or manufacturing to the US to meet the IRA's requirements associated with the value of goods manufactured in the country.
Who is Peter Wawer?
Peter Wawer is the head of Infineon's green technology division.
What is the IRA?
The IRA is a $369bn package of subsidies and tax incentives launched by President Biden to accelerate domestic production of green technologies, including semiconductors.
What chipmaker is Intel working on a new chip plant in Germany?
Intel is working on a new chip plant in Germany.
What did the federal government's refusal to provide extra state funding for Intel's chip plant in Germany jeopardize?
The federal government's refusal to provide extra state funding for Intel's chip plant in Germany jeopardized Europe's expected largest semiconductor facility.
What is the EU's strategy to boost its semiconductor industry?
The EU's strategy to boost its semiconductor industry is to attract foreign chipmakers to the continent while incentivizing domestic ones to expand their production capacity within the bloc.
Is it uncertain how successful the EU's strategy to boost its semiconductor industry will be?
Yes, it is uncertain how successful the EU's strategy to boost its semiconductor industry will be.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
