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00:00We're in Taiwan, of course, and Taiwan plays a really major role for you, for your business, the ecosystem, But just share the significance of the island. Yeah, it's clearly one of the hotspots of the semiconductor industry and it used to be always for manufacturing. It's the base for the biggest foundries in the world, very important partners of ours. But now with the emergence of the AI, it's really also the center for the AI ecosystem and therefore really important and looking forward to those days here in Taiwan to meet up with lots of partners, customers and also welcome them at our signature event of October Tech tomorrow. Let's talk about as well. You mentioned, of course, I and it's very clear today that A.I. demand is real. It's it's it's really in the early innings. But but also the evolution because we're moving from the point now that focus on limbs into more physical A.I. or embodied A.I.. And what does that also mean for your business and the kinds of semiconductors you're producing as well? Yeah, absolutely. So the generative A.I., the big topic for us is how to power the AI data center. But you're right, the next incarnation sort of is physical A.I.. And here we are talking about very complex autonomous systems like cars or humanoid robots which need to perceive, understand and act in a very complex environment. And that's for us, a big, big opportunity coming up because it's about sensors, it's about, for sure compute. But not only the main compute, it's also about local compute. And this you think about humanoid robots. If you think about what our our fingers and joints able to do, that will be a real challenge to replicate that in a humanoid robot and you need lots of semiconductors like gallium nitride, for example, to realize this small drawing. So big opportunity. I'm looking forward to learn more here from our partners about it. You've signed a partnership with NVIDIA as well. On humanoids in particular. We hear these estimates about millions of humanoid robots being here in a couple of decades, the industry worth billions of dollars. But but what's the opportunity for your business and could you quantify it, do you think? Yeah, I think it's at the early innings, as you said, the the humanoid robots story and of course there's a lot of enthusiasm around it. I think we have to also look at what already exists because classical automation, certain types of Roberts are existing and already today useful in manufacturing lines or wherever. And we I think the industry still has to find out where exactly the humanoid Roberts is adding value. But any humanoid robot we are talking about 1 to $2000 worth of semiconductor content for Robert and then you multiply it with whatever number you, you you see in the forecast and therefore it's a very irrelevant story to come up. Yeah, really huge, really huge cost component basically for any humanoid robot on the market. What about orders as well? You mentioned that and then of course your big supplier into the automotive industry. We've seen a slowdown in in cars. I mean in Europe for instance, I've been speaking about it, but on the flip side, you've got new technologies that are developing like autonomous driving software, for instance. So. What does the industry look like to you right now? Yeah, I mean, on a global level, the number of cars the car produced globally is not changing that much, right? It's phenomenally fluctuates between 90 or 85 million. So it shifts between the regions. But here, Infineon is very well placed because we have a rather similar market share across all the regions in the world. And then what matters for us a lot more is what you mentioned is the growth of the Bill of materials. So the number of semiconductors in the car is growing with the e-mobility in terms of power and in the sense of automated autonomous driving. We are talking about more sensors, we are talking about more compute, we are talking about the software defined vehicle. And that's clearly a big opportunity. Besides, market shifts are a sort of, of course, a difficult situation cost by the by the tariffs. But in the medium term, I'm very optimistic that not only from a cyclical point of view, there will be a growth coming back in the auto industry, but mainly from a structural point of view. What about the auto industry in China? I mean, this is a market as well where where you are getting a large amount of revenue from from China as as a country. But but also we see names like Bhiwadi, for instance, that are increasingly bringing their chip designs and chip manufacturing in-house. How does that impact your business? It's as a matter of fact, we have many of the Chinese OEMs are at the forefront of adopting new technologies. If you think about software defined vehicles, the Chinese OEMs are in average, I would say, ahead of of of other regions. And therefore they are important for us to bring new technologies in the car when it comes to certain OEMs that decides to do some of their semiconductor manufacturing themselves. That's that's far okay because at the end of the day we offer about 100 product families in automotive and they are focusing typically on the SLC for automated driving or they focus on the high power inverter module, but that's then about maybe 5 to 10 product groups and all of the household names in China, all of those we supply with our broad portfolio ranging from power to microcontroller, which we have now strengthened with the acquisition of the Marvell Automotive Ethernet business as well as sensor. So we are really a broad player and if somebody decides for whatever reason to do this in-house, fine, we can accommodate. There has been, though, and we've seen it that big push for self-reliance is led by Beijing, and we're seeing the rise of a lot of different semiconductor players in China as well, even if they are still behind, you know, the largest names in the world. Do you feel that as a as a business, even if you do have a big product suite? Of course, China is investing big time into semiconductors and you see a lot of capacity that has been built up. Capacity alone doesn't mean products. Again, you need to build up the portfolio. We have done so over over 40 years, 40 years of of of learning, of of gaining experiences. So I absolutely take local competition serious but from a from a bigger perspective. One thing that where Infineon shines, for example, is that we are not only a component supplier, but we understand the system. And we can sit down with the OEM, all the tier ones, and define the next generation of architecture and combine them certain things. And this sort of system innovation is typically where you can keep any component competitor at a distance. I guess trying to stay one step ahead of what is a very fast innovation accelerate innovation is is key these days. Last question on China then. Do you see yourself losing market share there? Is that a concern for you? Sorry? Do you see yourself losing market share there? I think our market share, as I mentioned already, is pretty, pretty stable. If you compare China and Europe, it's at the same level actually also in Japan. So that's was always our strategy because we we said many years ago we will never be able to predict where, which and which region is going to be more successful, which car model. So we are really aiming to be a broad player in all, all markets.

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Infineon CEO on How AI Applications Are Evolving

Infineon CEO Jochen Hanebeck discusses evolving AI applications including to humanoids and EVs. Hanebeck also discusses the outlook for Infineon in China, which is a major source of revenue. He speaks exclusively on the sidelines of Semicon Taiwan with Annabelle Droulers on "Bloomberg: The China Show." (Source: Bloomberg)

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