Herbert Diess becomes president of chip maker Infineon
In 1999, the 175-year-old German company Siemens spun off its semiconductor arm into an entity called Infineon, with headquarters just outside of Munich. Infineon has done nothing but grow since then. When it bought US chipmaker Cypress Semiconductor in 2020, Infineon said it had become one of the top 10 chipmakers in the world, making the automotive industry its number one customer. Herbert Diess, former CEO of the Volkswagen Group, should have understood the inner workings of Infineon at the time of Cypress’s purchase because he was on Infineon’s supervisory board from 2015 to 2020. Diess found himself quit his job at VW in September this year. HI’s management style and conflicts with the labor council, plus ongoing costs and missteps on the ambitious electrification path, have become overwhelming for the board and families. have control. In the file ‘Landing on your feet’, Financial Times report that Diess will be elected chairman of Infineon’s supervisory board on February 16, 2023.
Over the past three years, we’ve all learned how important chip manufacturing is to almost everything. Infineon is not only expanding geographically, planning to build a new factory in Germany to follow the new ones in Hungary and Singapore, but also expanding within the transportation industry. The German company has signed a multi-year deal with Stellantis potentially worth more than $1 billion, building on the business it already has with OEMs like Hyundai and BYD and suppliers like ZF Friedrichshafen. VW has been an Infineon customer for more than a decade, both parties touting relationships. In 2019, Infineon put out a release titled, “Volkswagen leans on Infineon for its electric future.” In August of last year, VW organizes a cross-country trip in the US of ID.4 to showcase EV charging potential, ID.4 alone is reported to contain 50 Infineon chips.
Diess’ take on the position is contingent on a confirmation vote at Infineon’s shareholder meeting in February. This appears to be a form of deterrence from now and then revelations. Outgoing Chairman Wolfgang Eder said: “Given the challenging environment in which Infineon operates, I am pleased to welcome Dr. Herbert Diess as the ideal candidate to become my successor. He has a wealth of knowledge. great knowledge of the company and the industry landscape.” He joins another recently hired in CEO Jochen Hanebeck, who took up that position in April.
In related news closer to home, an Infineon representative said the company sees the chip crisis easing around the summer of 2023.