“We expect significant price increases.”
The Chief Executive Officer of Infineon, Reinhard Ploss, Friday said that silicon chip prices are expected to rise significantly as the semiconductor makers, who have invested heavily to meet Covid-induced demand, needed to cover the cost of these investments, Reuters reported.
Infineon is a German semiconductor manufacturer.
“We expect significant price increases,” Ploss told a news conference at an opening ceremony for the company’s new power-chip plant in Villach, Austria.
Mr. Ploss said that Infineon chose not to sell to bidders during the pandemic and supplied to its customers instead. “We are a reliable partner when things go up and when they go down,” he told reporters.
Today, the German semiconductor manufacturer opened a 1.6 billion euro plant in Austria (Villach), boosting its silicon chips’ arsenal. With this plant, the company plans to supply power chips for data centres, cars, and renewable power.
“Our timing in adding new capacity couldn't be better, considering the growing demand for power-management semiconductors,” CEO Reinhard Ploss said.
Even though the pandemic plunged so many businesses worldwide, it did boost several others that desperately needed a makeover. The pandemic arrived with at least some good news that the electronics industry witnessed a boom. People worldwide purchased new gadgets for their online classes, etc., shunning the old ones. This kept the semiconductor industry on its toes, creating a huge demand. As a result, the company’s like Infineon are expanding their footprint from country to country.
The quotes used in this piece were extracted from Reuters.