The plan comes at a time when semiconductors are in high demand and short supply with problems particularly acute in the automotive sector. However, spending in 2022 will not boost manufacturing until late in 2023 or 2024 by which time it is predicted that for many product types there will be an oversupply.

Infineon is predicting revenues of about €11 billion (about US$13 billion) for FY21 along with a capex of €1.6 billion (about US$1.8 billion) and free cash flow of around €1.5 billion (about US$1.7 billion).

Infineon said it plans to increase investment in FY22 to €2.4 billion (about US$2.8 billion) while maintaining a free cash flow level of around €1 billion (about US$1.2 billion).

“Infineon is successfully managing the cycle and has leading positions in multiple markets with long-duration structural growth drivers. 2022 is shaping up to be a strong year; we are continuing our profitable growth journey and sustainable value creation,” said Reinhard Ploss, CEO of Infineon, in a statement.

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