Europe's semiconductor industry must invest in larger, automated 300-millimeter wafer fabs to counter surging competition from Chinese rivals, Infineon Technologies Vice President Thomas Altenmueller said Friday.
Speaking at a semiconductor conference in Sopot, Poland, Altenmueller emphasized that Chinese manufacturers are rapidly expanding capacity and expertise in power and analog chips-sectors long dominated by European firms.
"They are learning fast. They have the capacity," Altenmueller said. "It is super serious."
He attributed China’s shift to power and analog chips to export controls on advanced tools like ASML’s EUV lithography machines.
Europe must consolidate operations and scale up using automation to offset higher labor costs, Altenmueller urged. He stressed that existing profitable plants remain critical to global competitiveness.
While European firms trail in AI accelerators led by Nvidia, Samsung, and TSMC, Altenmueller highlighted strong growth potential in energy-efficient power delivery chips-vital for data centers facing rising energy demands.
The EU’s original Chips Act targets boosting its global chip production share from 10% to 20% by 2030. A new Chips Act 2.0 is now in development.
"Europe's competitiveness ultimately resides in its traditional industrial strengths in automotive and industrial chips," Altenmueller said. "Don't forget our strengths."
STMicroelectronics executives at the same event outlined plans to automate legacy fabs using robotics where full modernization isn't feasible.