Infineon is the world‘s largest supplier of silicon chips to the automotive industry, and the company has stated that it is considering transferring more manufacturing operations to the other side of the Atlantic to comply with recently passed legislation aimed at promoting the development of the US semiconductor industry.

Peter Wawer, head of Infineon‘s green technology department, said that the German chip manufacturer was reviewing the requirements of the Inflation Reduction Act related to the value of goods made in Made in USA.http://www.ic-bom.com/

We certainly need to pay attention to this, we comply with these rules, "Wawer said." We will not be excluded from our business due to certain value shares that we do not have in the United States.

Wawer stated that the company is currently satisfied with its footprint in the United States, but added that in the future, it "may need to transfer a certain number of products or some additional manufacturing to the United States

This Munich based company has seven manufacturing bases in the United States and one manufacturing base in Mexico, which is largely due to the acquisitions in the past decade, such as the acquisition of International Rectifier with $3 billion in 2015, and the acquisition of competitor Cypress Semiconductor Semiconductor with $9 billion in 2019.http://www.ic-bom.com/

President Biden‘s $369 billion package of subsidies and tax incentives has raised concerns among European policymakers as the high-tech industries required for green transformation are watching opportunities across the Atlantic.

After the Chip shortage caused by the coronavirus pandemic severely hit its auto industry and highlighted its importance, Germany also invested billions of euros in subsidies to encourage domestic manufacturing.

Infineon benefits from the demand for semiconductor production bottlenecks caused by the pandemic. The company broke ground at a factory in the eastern German city of Dresden last month and received a subsidy of 1 billion euros - about one-fifth of the cost - for construction.http://www.ic-bom.com/

Wawer said that the pandemic revealed how many industries rely on semiconductors, which are mainly from Taiwan, China, China. Infineon focuses on less advanced chips, not devices with powerful computing power, but is manufactured for industries such as the automotive industry, accounting for 45% of the company‘s sales. Although car sales are slowing down, Infineon is betting that it will benefit from the transition to electric vehicles, which require more chips than internal combustion engines.

Wawer‘s green industrial power division accounted for only 13% of Infineon‘s sales of 14.2 billion euros last year. But Wawer stated that the increase in green energy infrastructure such as wind turbines, solar panels, electric vehicle chargers, and transmission lines needed to connect everything to the grid means that the demand for chips is "simply explosive growth".http://www.ic-bom.com/

Wawer stated that the department expects an annual revenue growth of over 10% in the "coming years".http://www.ic-bom.com/