According to Nikkei Asia, Infineon Chief Marketing Officer and Board Member Helmut Gassel said in an interview recently that the chip industry needs to diversify production to ensure supply chain resilience and long-term growth.

Gassel noted that the chip industry has grown massively, and from a resiliency standpoint, it is wise to manufacture in multiple places.

"While diversification may not be easy at first, the government's move to push more chips to be produced locally is the right thing to do," Gassel said.

On the market side, Gassel said demand for PCs, TVs and smartphones is waning and the overall environment is more challenging than last year. However, demand from automotive, industrial, renewable energy and smart devices remains very strong, especially the strong growth of electric vehicles and the push for renewable energy will create new demand for semiconductors.