Infineon shares tumble as China accelerates chip production

Infineon Technologies AG saw its DAX-listed share price plunge about 17% in a single week, falling roughly 40% below its summer peak and becoming the index’s laggard. The drop mirrors a broader sell‑off across the semiconductor sector, with peers such as Samsung Electronics and ASML also posting double‑digit declines.

Investors are reacting to reports that China has made significant progress in developing modern lithography equipment and has launched the CXMT memory‑chip IPO, signalling a push toward self‑sufficiency in advanced chip manufacturing. Analysts warn that if Chinese firms can produce such equipment at scale, the technological lead of Western and South‑Korean chip makers could erode, putting additional pressure on companies like Infineon.