Infineon to Spend $300 Million on Second Factory in East Chinaby
Company plans to hire 2,500 people in Wuxi, near Shanghai
Last year, China accounted for 20% of Infineon's revenue
Infineon Technologies AG is investing $300 million in its second factory in eastern China, defying concerns about slowing Chinese growth as the German chipmaker seeks to get closer to its Asian customers.
The company plans to complete its second plant in Wuxi, near Shanghai, at the end of next year. It plans to hire about 2,500 workers, the Neubiberg-based company said Thursday. Infineon made about 20 percent of its sales in China in 2014, and its Asian customers include LG Electronics Inc. and Samsung Electronics Co., according to data compiled by Bloomberg.
Infineon entered China two decades ago and it employs 1,900 people in the country, producing chips used in automotive, industrial, power management and security applications. China buys more than half the semiconductors sold each year, and in 2013 the nation spent more money on chip imports than on oil, according to Sanford C. Bernstein.
The investment “highlights Infineon’s confidence in the continuous opportunities of the Chinese market,” Chief Executive Officer Reinhard Ploss said in a statement.
Besides Wuxi, Infineon also owns a small manufacturing site in Beijing.