MUNICH, Nov 10 - Executives at three of Europe's largest chipmakers said on Monday that the continent is well positioned to compete with rivals in the US and Asia as artificial intelligence extends beyond data centres into machines that interact with the physical world.
Leaders from Infineon, STMicroelectronics and NXP told an industry conference in Munich that Europe can build on its established capabilities in automotive and industrial technology to supply the power semiconductors, sensors and microcontrollers those machines need to operate safely and reliably.
The shift to what the executives described as "physical AI" - AI embedded in robots, vehicles and industrial equipment - will drive demand for components and systems that perform under real-world conditions, they said. Those conditions require predictable, dependable hardware and close integration between chipmakers and end users.
"For me, industrial AI or physical AI is, first of all, a must win for Europe," Infineon CEO Jochen Hanebeck said, adding that there remain many areas where Europe feels it is trailing other regions.
STMicroelectronics Chief Executive Jean-Marc Chery emphasised cooperation between chip suppliers and their customers as a key element of deploying AI into machines. He noted that training robots in AI-simulated environments ahead of operational use will be part of the process. STMicroelectronics has agreed to deploy humanoid robots from Italy's Oversonic inside its factories, with the first unit already installed at one of the company's semiconductor plants in Malta.
Rafael Sotomayor, CEO of NXP, said Europe’s historical technical strengths provide an advantage as AI systems move from advisory roles to taking physical actions where errors could have irreversible consequences. "There’s no undo for a broken bone if you make a wrong decision," Sotomayor said.
The three firms are established suppliers of the components used in these applications and compete with US rivals such as Texas Instruments and onsemi. Despite the executives' confidence in Europe's positioning, most projects remain at early stages, with factory trials more prevalent than broad commercial rollouts.
Speakers at the Munich gathering stressed that developing safe and reliable physical-AI systems will require continued collaboration across the semiconductor and industrial ecosystems. They framed the opportunity as a natural extension of Europe's existing strengths, while acknowledging that commercialization is still evolving.
Dateline: Munich