German chip manufacturer Infineon announced that the company will invest USD300 million to build its second Chinese plant in Wuxi, Jiangsu.
The new plant will be completed at the end of 2016 and the company plans to hire about 2,500 new employees.
Infineon entered the Chinese market 20 years ago and it currently has about 1,900 employees in the country, making chips used in automobiles, industrial applications, energy management, and security application sectors. In 2014, about 20% of Infineon's operating revenue was from China and its clients in Asia include LG and Samsung.
Reinhard Ploss, chief executive officer of Infineon, said in a statement that the new investment represents Infineon's confidence in the Chinese market. Ploss said this new factory in Wuxi will lay the foundation for Infineon's further expansion and development in China. By promoting investment in China, Infineon shows its active realization of localization strategy in China.
Apart from the Wuxi factory, Infineon also owns a small manufacturing factory in Beijing.