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World NewsApple-supplier Infineon is still 'far away' from meeting chip demand

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

Matthias Balk | image alliance | Getty Images

German chipmaker and Apple-supplier Infineon is struggling to satisfy demand for its semiconductors, in response to the corporate’s CEO, Reinhard Ploss.

“The automotive, but also other verticals, are very tight currently on supply,” Ploss instructed CNBC’s “Squawk Box Europe” on Wednesday.

“We are far away from matching the demand,” he stated, including that demand is continually growing as a result of there is a backlog increase. “The problems are rising and piling up over time.”

Apple lists Infineon as a provider in its 2021 supplier list, nevertheless it doesn’t specify what merchandise it buys from the corporate. Infineon makes a variety of semiconductor applied sciences together with microcontrollers, LED drivers, sensors and built-in circuits for energy administration.

It’s unclear if Apple is getting all of the elements that it wants from Infineon. Infineon declined to touch upon the matter whereas Apple didn’t instantly reply to a CNBC request for remark.

Last month, Apple CEO Tim Cook stated the Cupertino-headquartered firm had “larger than expected supply constraints” on iPhones, iPads and Macs within the third quarter that price the corporate an estimated $6 billion.

“The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia,” Cook stated.

Infineon has a number of factories throughout the Southeast Asia area and focuses on legacy nodes.

Infineon shares had been up over 2% Wednesday after the corporate introduced that it nearly doubled its revenue to 464 million euros ($535 million) within the three months to the top of September, from the quarter earlier than.

Asked if the Munich-based firm is charging increased costs for its merchandise on account of their relative shortage, Ploss stated: “We do not take advantage of the current situation because we have a long term relationship to our customers.”

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

Infineon opened a brand new 1.6 billion euro semiconductor manufacturing facility in Villach, Austria, in September as a part of an effort to satisfy demand for its merchandise. It stated chips from the plant will primarily be used to satisfy demand from the automotive business, knowledge facilities and renewable vitality era of photo voltaic and wind energy.

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