Infineon Turns on Charm as China Builds Domestic Chip Industry

Infineon Bilanz-Pk
Infineon chief executive Reinhard Ploss is focused on China. Source: DPA

The German chip maker Infineon is on a charm offensive in China, where the  government is drawing up plans to set up a domestic semiconductor industry.

At the moment, Chinese chip companies account for just 2 percent of global semiconductor sales which reached $339 billion in 2016. China’s central and regional governments  plan to pump more than $100 billion into the chip industry in the coming years.

Infineon Chief Executive Reinhard Ploss is hoping to head off direct competition by investing in research in China, and persuading authorities his company is a useful partner, not a rival.

China, which accounts for some 24 percent of Infineon revenue after a three-fold increase in sales there to just under €1.6 billion ($1.8 billion) since the start of the decade.

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