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

Matthias Balk | image alliance | Getty Photographs

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

“The automotive, but additionally different verticals, are very tight at the moment on provide,” Ploss informed CNBC’s “Squawk Field Europe” on Wednesday.

“We’re far-off from matching the demand,” he mentioned, including that demand is consistently growing as a result of there is a backlog build up. “The issues are rising and piling up over time.”

Apple lists Infineon as a provider in its 2021 supplier list, however 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 is 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.

Infineon shares have 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.

Requested if the Munich-based firm is charging larger costs for its merchandise because of their relative shortage, Ploss mentioned: “We don’t reap the benefits of the present state of affairs as a result of now we have a long run relationship to our clients.”

Nonetheless, he admitted that there are “bits and packets” of Infineon’s product portfolio that “comply with market costs.”

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

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