MUNICH, Nov 11 (Reuters) - The CEOs of Europe's three
biggest computer chip makers on Monday said that demands by the
U.S., Chinese and European governments that each region have its
own semiconductor production are a worsening obstacle to
business.
In a rare joint appearance following the election of Donald
Trump to the U.S. presidency for a second term, the CEOs of
Infineon of Germany, French-Italian firm
STMicroelectronics and NXP of the
Netherlands said their businesses have been suffering from
uncertainty and the trend toward nationalist industrial policies
seen over the past decade.
"The danger is that we will accelerate in this
fragmentation," said Infineon CEO Jochen Hanebeck at the
electronics conference in Munich.
"Fragmentation is happening on the supply side, and
potentially with tariffs, which are written on the wall, it will
get worse", he said.
All three firms are major suppliers of chips used for cars,
electrical power controls, and industry. All are currently doing
strong business in China due to the booming electric vehicle
market there. Other chip markets around the world are weak,
excepting for chips used in artificial intelligence.
STMicroelectronics CEO Jean-Marc Chery said that recreating
supply and production chains on separate continents to make
"China for China and West for West" chips has been costly in
both material and engineering terms.
"So. Congratulations to the new U.S. president."
NXP Semiconductors ( NXPI ) CEO Kurt Sievers said no country will be
able to dominate the chip industry or be independent of the rest
of the world.
"And if it was possible, it would become so expensive that
no consumer could afford any device which uses chips," he said.
"And I'm sure every government over time will understand it."