As it looks for acquisitions to accelerate growth, Infineon is prepared to spend several billion euros on the ideal takeover target, according to Chief Executive Jochen Hanebeck in an interview that was published on Wednesday.

Hanebeck told Frankfurter Allgemeine Zeitung that the German chip manufacturer is constantly “on the lookout” for suitable businesses (FAZ). “I estimate it to be between a few billion (euros) and more.”

The plans come at a time when the demand for chips, which are used in everything from smartphones to cars, is surging and supply chain bottlenecks that have lasted almost two years have afflicted numerous international industries, including the automotive, healthcare, and telecom sectors.

Infineon has stated that it sees growth in particular in electromobility, autonomous driving, renewable energy, data centers, and the so-called internet of things. The company reported a 63% increase in segment profit to 3.4 billion euros ($3.6 billion) in the fiscal year that ended on September 30.

The newspaper claimed that the CEO would not comment on specific takeover candidates. He claimed that the business could diversify into new markets, such as power semiconductors, sensors, software, and artificial intelligence.

Hanebeck told FAZ that it was quite conceivable for startups with insufficient funding, for instance, to want to join a corporation.

For $10 billion in 2019 and $3 billion in 2014, Infineon acquired U.S. rivals Cypress Semiconductor and International Rectifier, respectively, in order to grow its Internet and next-generation automotive businesses.

Brussels introduced the “Chips Act” in February to encourage public and private investment in the industry totaling an additional 15 billion euros by 2030, on top of the 30 billion euros in public investments already planned, to increase production capacity in Europe in a fiercely competitive market.

Infineon announced last month that it was preparing to build a new $5 billion factory in Dresden, Germany.

According to a media report, Taiwan’s TSMC is also in advanced discussions to build its first plant in Europe in Dresden.

According to a different media report, Intel, on the other hand, has changed its mind about launching a chip factory in eastern Germany in the first half of 2023.

(Adapted from EuroNews.com)