Chip manufacturer Infineon announces the double boom

Chip manufacturer Infineon announces the double boom

Dhe Infineon CEO Jochen Hanebeck has not been in office for a year, but is starting the new 2022/23 financial year with a bang: According to this, the chip manufacturer from Neubiberg near Munich wants a new billion-dollar plant in Dresden to build. The Dax group is so optimistic about its own prospects that Hanebeck has also raised its long-term goals.

The announcement was very well received on the stock exchange. The share price rose by up to 7 percent in the course of trading. No wonder: Because with the step stands Infineon not only in line with the major investments made by Intel in the new chip plants in Magdeburg and Ohio, and those made by TSMC and Samsung in the Far East and the United States; As one of the three major European manufacturers, it is now catching up with the Americans and Asians in the investment race and is also strengthening Dresden, Europe’s largest semiconductor location to date, with its EUR 5 billion investment.

increasing the prognosis

“Decarbonization and digitalization are causing structurally increasing demand for semiconductors,” said Hanebeck. Thanks to its strategic focus on industrial customers, Infineon will benefit disproportionately from this development. “This dynamic has continued to accelerate, so now is the right time to give us an even more ambitious target business model,” said the manager, who took over the top position in the group in the spring.

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For detailed view

Infineon supplies power semiconductors, primarily for the automotive industry and the associated electromobility. However, the components are also used in other growth areas such as mechanical engineering, in data centers and in systems for renewable energies. The Group expects that these areas will develop very quickly and dynamically and will ensure sustained strong growth far beyond the semiconductor industry.

Circuit board with Infineon chips

Circuit board with Infineon chips

Image: dpa

Therefore, Infineon now anticipates sales growth of more than 10 percent instead of at least 9 percent previously. Above all, profitability should also improve. Infineon has set itself the goal of achieving the so-called segment result margin, i.e. the operating margin, on average in the future at a level of 25 percent – previously the group had assumed 19 percent. According to this, among other things, an increasing proportion of system solutions, a product mix with higher margins and cost-efficient production on silicon wafers, i.e. pizza-sized discs with a diameter of 300 millimeters, should ensure better results.

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