Gassel said that if the plan supported the European manufacturers in areas like automotive, industrial and Internet-of-Things, Infineon would be willing to participate. “We think Europe should focus on bringing modern, but not state-of-the art technology” Bloomberg quoted Gassel saying.

European politicians are seeing the strategic significance of IC design and production and want to increase both the continent’s volume and its leading-edge capability. The politicians want to increase the volume to 20 percent of global supply but also get to the leading edge at 5nm to 2nm. However, European chip companies have abandoned leading-edge digital chip manufacturing many years ago, preferring to buy this production from foundries. This leaves the European Union with few options for the fulfilment of its agenda.Gassel made the point that most electronic equipment made in Europe doesn’t need leading-edge production. “The vast majority, if not all of the components, in a car today and in the next five years to come, won’t take any benefit from anything below 20-nanometers,” Gassel said.

Infineon’s Gassel has followed in the footsteps of STMicroelectronics’ CEO Jean-Marc Chery, who said recently that his company would not be participating in a Euopean alliance to get to the leading-edge (see ST will not join European advanced chip alliance).

The European Union is arguing that the continent is too dependent on off-shore supply chains and that the crisis in semiconductor supply is evidence that Europe needs to take more control

Related links and articles:

ST will not join European advanced chip alliance

European 2nm chip fab a “futile endeavour,” says think tank

Opinion: Time for Europe to wake from a 30-year slumber

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