Infineon raises forecast, brings forward production start in Villach

Infineon raises forecast, brings forward production start in Villach

Business news |
By Christoph Hammerschmidt

“Despite the headwinds from the weak US dollar, we were able to significantly increase revenues and earnings in the first quarter,” Infineon CEO Reinhard Ploss said when presenting the figures. “In addition to the economic recovery in some regions, we are benefiting from the digitalisation push in all areas of life. Semiconductors are needed more than ever.”

In view of dynamically increasing incoming orders and well-filled production lines in many parts, the company is raising its annual forecast slightly – the company now expects sales of 10.8 billion euros, 300 million euros more than before. The operating margin is expected to climb to 17.5 per cent. In the last financial year, it was 13.7 per cent. In addition, Ploss wants to use the momentum and invest 1.6 billion euros in the expansion of production – 100 million euros more than previously planned. This will primarily benefit the chip factory in Villach, Austria, where Infineon manufactures power components. This factory is now scheduled to start operations in the last quarter of the current financial year, i.e. in the period between July and September 2021.

Revenues increased by 6 % to Euro 2.63 billion compared to the previous quarter, and by as much as 37 percent compared to the same quarter last year – the last quarter before the Corona crisis. All business sectors contributed to this, but especially the automotive segment, where turnover increased by 10 and 40 percent respectively. Profit more than doubled compared to the previous quarter to now 256 million euros.

Ploss remains confident for the current quarter: the manager hopes for sales of up to 2.8 billion euros. This corresponds to an increase of about 7 %, mainly driven by the automotive sector. The margin is expected to reach 16.5 percent.

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