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Europe can compete in robotics and physical AI, top chipmaker CEOs say

By Reuters News

By Nathan Vifflin

MUNICH, Nov 10 (Reuters) - The CEOs of top European chipmakers Infineon IFXGn.DE, STMicroelectronics STMPA.PA and NXP NXPI.O said on Monday the region was well positioned to compete with the US and Asia in robotics and "physical AI", building on its traditional strengths in automotive and industrial technology.

As AI moves from data centres into robots, vehicles and industrial machinery, demand will grow for chips and systems that can operate safely and reliably in the real world, the executives told an industry gathering in Munich, Germany.

The three companies are major suppliers of the power chips, sensors and microcontrollers used in such machines, competing with US rivals including Texas Instruments TXN.O and onsemi ON.O.

"For me, industrial AI or physical AI is, first of all, a must win for Europe," Infineon CEO Jochen Hanebeck said. "There are so many topics where we feel that we are second to other regions."

STMicroelectronics CEO Jean-Marc Chery said physical AI would require close cooperation between chipmakers and customers, including training robots in AI-simulated environments before putting them to work.

ST itself has agreed to introduce humanoid robots from Italy's Oversonic into its factories, with the first already installed at a semiconductor plant in Malta. Most such projects remain at an early stage, with factory trials far more common than widespread use.

Rafael Sotomayor, CEO of NXP, said Europe's historical strengths gave it an advantage in developing the safe, reliable systems required as AI moves from making recommendations to taking physical action, where mistakes can have irreversible consequences.

"There's no undo for a broken bone if you make a wrong decision," Sotomayor said.

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