Automotive, power drive Infineon Q2 results
Infineon closed the second quarter significantly better than expected – now CEO Jochen Hanebeck is again raising the forecast for the current financial year.
While the Green Industrial Power (GIP) and Automotive (ATV) segments benefited from the trend towards decarbonisation of industry and thus from renewable energies with corresponding infrastructure as well as from electromobility, no improvement was discernible in consumer goods markets such as smartphones, PCs and household appliances (where Infineon is mainly active with power management solutions), explained Infineon CEO Jochen Hanebeck at the presentation of the business figures.
The semiconductor group’s revenues amounted to €4.2 billion, a 25% improvement on the same quarter last year, while its after-tax profit rose by as much as 76% to €826 million. The good figures prompted the company to raise its sales expectations for the full year by €700 million to now €16.2 billion. The same applies to the operating margin; it is now expected to be 27%, two percentage points more than previously estimated. The company expects the ATV and GIP divisions to continue to make above-average contributions to revenue.
“Infineon is doing very well. Our businesses around electromobility, renewable energy generation and energy infrastructure are developing strongly. We serve precisely these key decarbonisation applications,” says Hanebeck. “Overall, we are very confident for Infineon’s further business development. Therefore, we are adjusting our expectations for revenues and profitability in the current fiscal year upwards, as already announced at the end of March.”
Infineon also intends to underpin its growth in the medium and long term by expanding its manufacturing capacity. Just a few days ago, the company broke ground for an expansion of its production facilities in Dresden (eeNews Europe reported). This fab expansion will increase the total capacity of Infineon’s Dresden facility by a third. Present at the ceremony were senior politicians such as EC President Ursula von der Leyen and German Chancellor Olaf Scholz. The reason: Infineon will probably receive one billion euros in subsidies from the EU and federal coffers for the expansion.
Related articles:
Infineon strengthens Europe’s semiconductor industry with “Smart Power Fab”
Infineon widens SiC supply basis
Infineon brings decarbonisation, renewable energy to the fore
Power, automotive to drive higher ST growth in 2023
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
