The CEOs of Infineon and NXP are scheduled to deliver keynote speeches at the upcoming SEMICON Taiwan 2025 this week.
In recent years, SEMICON Taiwan has focused heavily on advanced processes, high-performance computing, high-speed transmission, and silicon photonics (SiPh), leaving relatively little room for European chipmakers. This has been the case for Infineon and NXP as well, even though they are deeply rooted in the Taiwanese market and are among the major investors in TSMC's European projects. As such, the presence of the two leading European IDMs at this year's SEMICON Taiwan is particularly noteworthy.
Diving deeper, however, Infineon and NXP do have much in common with the main themes at SEMICON Taiwan this year.
Infineon has strengthened its position in wide bandgap semiconductors over recent years, and currently leads in advanced power semiconductor technologies. While wide bandgap semiconductors receive relatively less attention at SEMICON, the exhibition still features dedicated areas showcasing the latest innovations in this field.
Meanwhile, NXP has begun collaborating with TSMC on advanced processes for automotive chips, while also expanding its packaging and testing facilities in Kaohsiung, a sign that the company still has significant expertise and influence in terms of chip production.
In the field of AI, both companies are focusing on edge applications in industrial control and robotics. Infineon's power semiconductors feature prominently in the supply chains for cloud AI data centers, while NXP concentrates more on deepening its presence in edge AI, emphasizing software platform development to meet diverse AIoT user demands.
Additionally, both firms are key suppliers in the automotive electronics sector, competing fiercely in the automotive MCU market. From the vantage of current trends, however, there appear to be few immediate AI-related breakthroughs in automotive electronics, aside from advanced driver-assistance systems (ADAS),
European perspectives amid challenges from US and China
Recent talk in the semiconductor industry has largely centered on moving investments back to the US and challenges in establishing new fabs. Given the demands of the Trump administration, market sources indicate that TSMC will concentrate its resources for overseas expansion on the US in the next few years, potentially delaying capacity growth in Europe and Japan.
For Infineon and NXP, as investors in TSMC's European projects, this means their supply chain security needs may be deprioritized in favor of US interests, and the two chipmakers may need to wait longer before they can rely on local production capacity in Europe.
Some industry insiders suggest this dynamic partly explains why these two companies have chosen to make a strong showing at SEMICON Taiwan, intending to amplify Europe's voice in the AI semiconductor era.
Indeed, with the ongoing AI boom, Europe is often seen as slow-moving and burdened by regulations, struggling to compete with the US and China in its attempts to secure a central role in the semiconductor race. Even so, European chipmakers do hold a unique perspective in terms of the AI surge.
As an example, NXP has consistently emphasized the importance of edge AI at Computex in recent years, even though this may be detrimental to its current status in cloud AI. This pragmatic approach to developing edge AI has become crucial in the field of robotics, which is expected to see a surge in 2025, offering European players a chance to compete head-to-head with other global powers.
In this light, anticipations are high regarding what fresh European perspectives Infineon and NXP can bring to SEMICON Taiwan this year.
Article edited by Jack Wu
