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Infineon sets up second factory in China

Posted: 09 Oct 2015 ?? ?Print Version ?Bookmark and Share

Keywords:smart manufacturing? smart home? smart city? power management?

Infineon Technologies plans to get closer to its Asian customers as it invests $300 million in its second factory in China, seemingly unconcerned about the country's slowing growth.

Some of the German chipmaker's Asian customers include LG Electronics and Samsung Electronics, according to Bloomberg.

Engaging an area of 36,000m2, the new facility will rise in Wuxi, near Shanghai, at the end of 2016. It is expected to generate 2,500 jobs upon ramp-up of all the production lines. One-fifth of Infineon's sales last year came from China.

"Infineon's new factory will foster further expansion in China, building on the experience of two decades in the country," said Dr Reinhard Ploss, CEO of Infineon. "It highlights Infineon's confidence in the continuous opportunities of the Chinese market as well as our commitment to substantial investment in China and our determination to support the 'In China, For China' strategy."

Infineon entered the Chinese market in 1995 and currently employs more than 1,800 employees in the country, manufacturing chips in applications such as industrial, automotive, power management and security card.

The new factory will further give play to Infineon's unique expertise in smart factory to provide demonstration and consulting services for local partners such as manufacturers and integrators of production systems, thus supporting the transformation of the local manufacturing industry towards smart production, Infineon said in a statement.

Infineon also focuses on the Internet of Things (IoT), which is identified as a catalyst for economic growth in China and around the world. Known as the "IoT pilot city of China," Wuxi has unique advantages in IoT-related research and applications.

Infineon has established and is maintaining a long-term partnership with the Wuxi-based Internet of Things Research and Development Centre of the Chinese Academy of Sciences, and provides one of the 10 IoT reference cases in the city with its IoT-enabled facility.

The new factory will leverage the company's proven expertise in sensing, security, power and micro-control, thus enhancing the connection between IoT and manufacturing.

According to research firm Sanford C. Bernstein, China consumes more than half of semiconductors produced each year. In 2013, it spent more money on chip imports than on oil.

Apart from Wuxi, Infineon also has a manufacturing site located in Beijing.

- Stephen Padilla

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