Infineon sees upturn, increases forecast for 2023

Infineon sees upturn, increases forecast for 2023

Market news |
By Nick Flaherty

Infineon Technologies is increasing its financial forecast for 2023 after a strong first half.

The company expects to see revenue in 2023 increase to as much as €16.5bn, up from €15.5bn. This is being driven by industrial and power. Revenue in the Automotive (ATV) and Green Industrial Power (GIP)1 segments improved significantly while the Connected Secure Systems (CSS) segment saw a slight increase in revenue. However the Power & Sensor Systems (PSS) segment experienced a significant decline as expected.

The company is spending €3.0bn on capital expenditure this year, and this week broke ground on a smart power fab in Dresden, Germany, that will start production in 2026.

“Global semiconductor demand will grow strongly and persistently in view of the high demand for renewable energies, data centres and electromobility. Our new plant will serve our customers’ demands in the second half of the decade. Together, we are driving decarbonization and digitalization,” said Jochen Hanebeck, CEO of Infineon.

The second quarter saw revenue of €4.119bn, up 4% on the previous quarter and up 25% on the same quarter last year, with Q2 2023 profits of €826m.

“Infineon is performing very well. We are seeing strong growth in our businesses relating to electromobility, renewable energy generation and energy infrastructure. These are precisely the key applications we are serving in terms of the decarbonization,” says Hanebeck.

“Although an improvement in consumer goods markets such as smartphones, PCs and home appliances is not yet visible, we are nevertheless very confident overall about Infineon’s future business performance. We are therefore revising our expectations for revenue and profitability in the current fiscal year upwards, as already announced at the end of March.”

This will see adjusted Free Cash Flow of €1.81bn


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