Chip maker Infineon said on Thursday that it will expand its production capacity to solve the problem of global supply shortages and will meet customer needs in the long-term.

The company’s CEO, Reinhard Ploss, said that Infineon’s new factory in Villach, Austria, will open at the end of summer and will have the capacity to produce enough power semiconductors each year to equip 25 million vehicles. The transmission system of an electric vehicle.

Recently, semiconductor supply tightening has forced Volkswagen Group, Ford and General Motors and other automakers to stop some production, after the chip market was cleared by the demand for higher-margin consumer electronics products.

Analysts say that as chip makers adapt to rising demand since the coronavirus pandemic last spring, the supply of automotive products such as microcontrollers will remain tight until the middle of this year.

Infineon has overcome last year’s turbulence relatively well by building inventories. However, it faces challenges because it, like its competitors, outsources part of its production to the mediocre Asian contract manufacturers.

Infineon plans to add another factory in Dresden, Germany, to supplement Villach’s 1.6 billion euro (1.95 billion US dollars) factory in order to increase flexibility.

GLP said to shareholders at Infineon’s annual shareholder meeting: “This will allow us to control the production of the two factories in the same way as we control two factories.”

-German chip maker Infineon said on Thursday that its ability to meet orders has been stretched amid global supply constraints, and it only expects the situation to ease in the second half of this year.

Chief Marketing Officer Helmut Gassel (Helmut Gassel) said at its annual shareholder meeting: “The current order situation is very tight. He added that contract manufacturers’ production has been in a state of tension, expanding Infineon’s own The production capacity will take time.

Gassel added: “We hope to see a certain degree of easing in the second half of this calendar year.”