Infineon Technologies, a leading semiconductor manufacturer, announced an impressive 13 percent increase in revenue for the April-June quarter of its 2023 fiscal year. The company’s revenue reached €4,089 million, marking significant growth compared to the same period last year.
ATV Segment Continues to Thrive
The ATV (Automotive) segment witnessed robust growth during the third quarter of the 2023 fiscal year, with revenue climbing to €2,129 million. This 2 percent increase was primarily driven by surging revenue from microcontrollers and sustained strong demand in the electromobility sector.
GIP Segment Records Modest Revenue Rise
In the third quarter, the GIP (Industrial Power Control) segment experienced a slight revenue uptick, reaching €565 million from €558 million in the second quarter. The 1 percent growth was attributed to rising demand in the areas of transport, energy infrastructure, and renewable energy applications. However, revenue from automation and industrial drives remained steady, while the revenue from home appliances decreased during the same period.
PSS Segment Faces Slight Decline
The PSS (Power & Sensor Systems) segment saw a slight decline of 1 percent in revenue, dropping to €917 million from €925 million in the previous quarter. This reduction was mainly due to a decrease in demand for certain applications. Nevertheless, there was a positive note as revenue from USB controllers and smartphone products increased from a low level.
CSS Segment Revenue Witnesses a Dip
The CSS (Connected Secure Systems) segment experienced a decline in revenue, dropping to €474 million from €550 million in the second quarter. The 14 percent decrease was primarily caused by reduced demand in the microcontrollers and Wi-Fi areas. However, revenue in other segments remained stable.
CEO’s Statement
Jochen Hanebeck, the CEO of Infineon, commented on the contrasting market conditions, stating, “On the one hand, in electromobility, renewable energy, and related application areas, demand has stayed high. On the other hand, demand for consumer applications, such as PCs and smartphones, remains low.”
Outlook for the Future
Infineon is optimistic about its prospects for the coming quarters. The company expects to generate revenue of approximately €4 billion in the fourth quarter of the 2023 fiscal year. Furthermore, the projected revenue for the entire fiscal year 2023 stands at €16.2 billion, representing a remarkable 14 percent growth compared to the previous fiscal year. Both the ATV and GIP segments are expected to outpace the average growth rate for the group, while the CSS segment’s revenue growth will likely align with the group’s average rate. However, revenue in the PSS segment is anticipated to be lower than in the prior year.
Investment Plans
Infineon also revealed its Capex plans for the 2023 fiscal year, which amounts to approximately €3 billion. The company’s primary focus for Capex will be on expanding its manufacturing capabilities. This includes the construction of the third manufacturing module in Kulim, Malaysia, to produce compound semiconductors, and the commencement of construction work on the fourth manufacturing module in Dresden, Germany, for analog/mixed-signal components and power semiconductors. Additionally, Infineon will continue to invest in the expansion of frontend manufacturing capacity, particularly in Dresden, Germany, and Villach, Austria.
With a promising outlook and strategic investments in the pipeline, Infineon Technologies is poised for further growth and innovation in the semiconductor industry.
