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The German chip manufacturer Infineon is cutting 1,400 jobs worldwide. A further 1,400 jobs will be relocated to low-wage countries. This means that jobs in the chip industry
The German chip manufacturer Infineon is cutting 1,400 jobs worldwide. A further 1,400 jobs will be relocated to low-wage countries. This means that jobs in the chip industry in Germany will be lost before investments by other manufacturers bear fruit.
The German chip manufacturer Infineon will save 2,800 jobs. Worldwide, 1,400 jobs will be lost, and 1,400 more jobs will be relocated to low-wage countries. In Germany, several hundred jobs will be lost at the Regensburg plant, although this was already announced.
The cuts were announced by CEO Jochen Hanebeck after disappointing third-quarter results. Infineon wanted to raise 3.8 billion euros, but ended up with 3.702 billion euros. The annual sales forecast was revised downwards for the third time, to 15 billion euros.
Infineon is making a profit and was in the black at 403 million euros in the third quarter of this year. This is also less than investors expected, which is why Hanebeck decided to restructure.
Infineon is a spin-off of Siemens and was founded in 1999. The company currently employs just over 58,000 people worldwide and has offices in Germany, Austria, Hungary, Italy, France, Portugal and Romania. The company also has factories and research and development centers outside the EU, for example in Taiwan, the UK, India, Malaysia, Indonesia, Bangladesh and China.
It is not yet clear which jobs will disappear and which will go where. Infineon at least has the size and presence to change internally. The CEO promises that Regensburg will remain the central location for Infineon, but that the focus will be more on innovation.
In any case, the move is a setback for the European and German chip industry. The EU wants more autonomy due to the strategic importance of microchips and Germany wants to act as a hub. The company has already secured various investments to this end.
For example, TSMC is starting to build a large factory near Dresden together with European partners. This site is expected to be operational in 2027 and will primarily support the automotive industry. Intel promised an advanced chip factory for the company’s most modern processors near Magdeburg, but these plans were not implemented. Construction will not begin until next year at the earliest.
The entire tech industry is struggling after stocks shot up due to the AI ​​hype without much support from reality. Sky-high expectations are thus missed. Market leader Intel has been hit hard and has had to lay off 15,000 employees worldwide.
Source: IT Daily
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