Infineon will allocate billions of euros to buy startups and build a plant in Dresden for €5 billion

The German semiconductor company Infineon plans to buy startups in order to accelerate its own growth. And the manufacturer is ready to spend a lot.

Here's What We Know

Infineon intends to buy semiconductor startups and wants to allocate several billion euros for this purpose. It is not known at the moment which companies will be within the sight of the German manufacturer. It is possible that small startups that are experiencing financial difficulties will be willing to merge.

The company also wants to build a new plant in Germany. The enterprise will appear in Dresden. Infineon is ready to invest €5 billion ($5.33 billion) in new production.

The German manufacturer posted a profit of €3.4 billion ($3.63 billion) for the fiscal year ended Sept. 30. Compared to the previous period the growth was 63%. Infineon is ready to produce chips for electric cars, data centers and the Internet of things. At the same time a deficit of semiconductor products on the market is still observed, which occurred due to the consequences of the pandemic COVID-19.

Source: Reuters