According to Reuters, Infineon CEO Reinhard Ploss said on July 2 that the semiconductor supply chain is still difficult due to remote working and economic recovery after the epidemic has slowed.

Ploss said that chip manufacturers have limited capacity to increase production capacity, and some Asian manufacturers are also facing further production restrictions in response to the epidemic. The situation is still difficult at this stage, and the situation in some areas is more severe.

Ploss said in May that the foundry failed to invest enough in new capacity. In order to meet production needs, Infineon’s new Austrian fab is about to start production, while the Dresden fab in Germany also has available capacity.

"We have two sites to ramp, which is advantageous (compared) to the majority of our competitors who are short on everything," said Ploss.

Still, the overall level of product stocks Infineon has on hand is depleted, said Ploss. Bringing supply into balance with demand would require chipmakers to run a temporarily overloaded supply chain, he added.

Ploss said that Infineon is a leading supplier of power semiconductors in the automotive industry, highly dependent on TSMC and other foundries, and has conducted in-depth discussions with TSMC on meeting customer needs.