Europe can compete in physical AI, chipmakers say

Europe’s strengths in automotive and industrial technology position it to compete with the US and Asia in robotics and physical AI, according to the CEOs of Infineon, STMicroelectronics and NXP. Speaking at an industry gathering in Munich, the executives said AI’s expansion beyond data centres into vehicles, robots and industrial machinery would increase demand for chips and systems that operate safely and reliably.

The companies supply power chips, sensors and microcontrollers used in these machines, competing with US rivals including Texas Instruments and onsemi. Infineon CEO Jochen Hanebeck described industrial and physical AI as a strategic priority for Europe. NXP CEO Rafael Sotomayor stressed that systems taking physical action require greater safety assurances because mistakes can have irreversible consequences.

STMicroelectronics CEO Jean-Marc Chery said progress would require close cooperation between chipmakers and customers, including training robots in AI-simulated environments before deployment. ST has agreed to introduce humanoid robots from Italy’s Oversonic into its factories, with the first already installed at a semiconductor plant in Malta. Such projects remain nascent, with factory trials more common than widespread use.