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CEOs of European chip makers concerned about nationalist industrial policies
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CEOs of European chip makers concerned about nationalist industrial policies
Nov 11, 2024 7:29 PM

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."

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