Apple-supplier Infineon is still ‘far away’ from meeting chip demand

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  • Infineon is the largest chip maker in Europe.
  • It makes a wide range of semiconductor technologies, including microcontrollers, LED drivers, sensors and power management integrated circuits.
  • “Automotive, but other verticals are also very tight on supply,” Infineon CEO Reinhard Ploss told Businesshala’s “Squawk Box Europe” on Wednesday.
  • Apple lists Infineon as a supplier in its 2021 supplier list, but does not specify which products it purchases from the company.

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German chipmaker and Apple-supplier Infineon is struggling to meet demand for its semiconductors, according to company CEO Reinhard Ploss.

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“Automotive, but also other verticals, are currently very tight on supply,” Ploss told Businesshala’s “Squawk Box Europe” on Wednesday.

“We are far from meeting demand,” he said, adding that demand continues to grow as a backlog is building. “The problems keep getting bigger and bigger over time.”

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Apple lists Infineon as a supplier in its 2021 supplier list, but does not specify which products it purchases from the company. Infineon manufactures a wide range of semiconductor technologies including microcontrollers, LED drivers, sensors and integrated circuits for power management.

It is unclear whether Apple is getting all the components it needs from Infineon. Infineon declined to comment on the matter, while Apple did not immediately respond to Businesshala’s request for comment.

Shares of Infineon rose more than 2% on Wednesday after the company announced that it nearly doubled its profit to 464 million euros ($535 million) in the three months to the end of September, up from the prior quarter. Was.

Asked whether the Munich-based company is charging higher prices for its products because of their relative scarcity, Ploss said: “We don’t take advantage of the current situation because of the long-term relationships we have with our customers.”

However, he acknowledged that there are “bits and packets” of Infineon’s product portfolio that “follow market prices.”

Infineon opened a new 1.6 billion euro semiconductor factory in Villach, Austria, in September as part of an effort to meet demand for its products. It said chips from the plant will be used primarily to meet the demand for renewable energy generation from the automotive industry, data centers and solar and wind power.

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