Infineon speeds capacity expansion amidst strong order entry
The company generated sales of € 1.836 million, 4% more than in the second quarter of the previous year. Earnings per share rose disproportionately strongly: from € 0.18 to € 0.40. For the 2018 fiscal year, Infineon CEO Reinhard Ploss now expects sales to increase by 4 to 7%. The sale of the high-frequency power components business to Cree will result in a consolidated profit of well over €1 billion.
Ploss explained that the company’s growth comes from four sources. Drive solutions for all types of electric vehicles, including 48-volt systems, high-speed trains and renewable power generation. In addition, Infineon is registering a growing demand for the power supply of data centers for artificial intelligence. “Our order books are full to bursting,” Ploss explained. In response to the strong order intake, Infineon intends to accelerate its capacity expansion. The chip manufacturer has earmarked €1.2 billion for this purpose, some €100 million more than previously planned.
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