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Infineon CEO emphasizes scale in power semiconductor market amid Japanese industry fragmentation
Friday, January 2, 2026 at 08:12 PM
The CEO of Infineon Technologies has stated that the power semiconductor market is shifting toward a competition of scale, cautioning Japanese manufacturers against maintaining a fragmented industry structure. This indicates a potential trend toward consolidation or massive capacity expansions to remain competitive in global supply chains.
Context
Infineon CEO Jochen Hanebeck recently asserted that the power semiconductor industry is entering a "game of scale," specifically targeting the fragmented landscape of Japanese competitors. As the global leader, Infineon is emphasizing that massive capital expenditure and manufacturing volume are now the primary barriers to entry. This shift is driven by the urgent demand for power-efficient chips in electric vehicles and AI data centers, where large-scale production is essential to drive down costs and secure long-term supply agreements with major global OEMs.
Currently, Infineon commands approximately 19% of the global power discrete and module market, while the Japanese sector remains split between mid-sized players like Mitsubishi Electric, Fuji Electric, Toshiba, and Rohm. By highlighting this fragmentation, Hanebeck suggests that these firms may struggle to remain competitive against integrated giants. With Infineon aggressively expanding its 300mm thin-wafer capacity and its massive €5 billion silicon carbide plant in Malaysia, the company is positioning itself to consolidate its dominance through 2030.
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