Helmut Gassel, chief marketing officer and board member of Infineon, said the chip industry needs to diversify production to ensure supply chain resilience and long-term growth.

According to the Nikkei Asian Review, Gassel noted that the chip industry has grown massively and that manufacturing in multiple locations is a smart move from a resilience standpoint. "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.

According to World Semiconductor Trade Statistics, the global semiconductor industry will grow 26.2% to $556 billion in 2021, and many industry executives believe it could become a trillion-dollar industry by 2030.

In addition, Gassel said that judging from the current market conditions, demand in the fields related to personal computers, TVs and smartphones is weakening, 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.