+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
News Article

Infineon planning a major investment in a new factory in Dresden

News

After a record 2022 fiscal year, Infineon AG significantly increases its long-term financial targets, and is planning a major investment in a new factory in Dresden. Infineon Technologies AG is increasing its target operating model and reporting its results for the fourth quarter and for the full fiscal year, both of which ended on 30 September 2022.

“Decarbonization and digitalization are causing structurally increasing demand for semiconductors. Infineon will benefit disproportionately from this development thanks to its strategic positioning. This dynamic has further accelerated, so now is the right time for us to define an even more ambitious target operating model," says Jochen Hanebeck, Chief Executive Officer of Infineon. "Furthermore, by the planned investment in a new factory we are continuing the consistent execution of our strategy and are broadening the base for our accelerated profitable growth trajectory in a forward-looking way. We are pleased to have political support for an investment at the Dresden site (Germany) and we are counting on adequate funding through the European Chips Act. We concluded the challenging 2022 fiscal year very successfully, with an excellent fourth quarter. The 2023 fiscal year has also started well. In view of ongoing macroeconomic and geopolitical uncertainties, heightened vigilance is required in the coming quarters. We are prepared to act swiftly and flexibly if necessary."

In its target markets automotive, industrial and IoT applications, as well as renewable energies Infineon sees increasing dynamic and strong structural growth drivers. The company is therefore upgrading its target operating model, which defines financial targets over the cycle. In future, based on an exchange rate of US$1.00 to the euro, the expected average rate of revenue growth will be more than 10 percent, increased from 9 percent + previously. Growth will in particular be driven by electromobility, autonomous driving, renewable energies, data centers and IoT, such growth being accompanied by a significant improvement in profitability: the Segment Result Margin is expected to reach an average level of 25 percent, compared with 19 percent to date. The main factors influencing the rise in earnings will be an increasing proportion of system solutions, a higher-value product/technology mix due to portfolio management, the expansion of cost- effective 300-millimeter production, and operational expenses rising at a lower rate than revenue due to digitalization and economies of scale.

For the first time, Infineon is including an explicit Free Cash Flow target in its target operating model, replacing the investment-to-sales rate previously used. Free Cash Flow, adjusted for major investments in frontend buildings, should be within a range of 10 to 15 percent of revenue over the cycle. Infineon is planning to continue expanding its 300-millimeter manufacturing capacity, to enable the expected acceleration in growth of analog/mixed-signal and power semiconductors. The intended location is Dresden (Germany). Adequate public funding is required for the investment decision. With a planned total investment of €5 billion, this would be the largest single investment in Infineon’s history. Thereby, the company would strengthen its position as a global semiconductor leader in power systems. When operating at full capacity, the planned factory would have the potential to generate annual revenue equal to the level of the investment. The new factory is expected to create up to 1,000 newhighly qualified jobs and according to planning could be ready to start production in autumn of 2026.

Infineon planning a major investment in a new factory in Dresden
Particle Measuring Systems introduces 10 nm aerosol particle counter
EBARA presents the DYNOX™ Gas Abatement System
TSMC Launches OIP 3DFabric Alliance
DuPont reshapes IC materials manufacturing for post-COVID success
Evolving subfab vacuum challenges demand collaborative solutions
Next-gen low-k films can address present, future fabrication challenges
Critical Manufacturing redefines semiconductor MES for greater agility, success
Brewer Science bonding & dielectric materials deliver packaging solutions for 5G, IoT devices
Cutting FOPLP pattern distortion
EV Group advances leadership in optical lithography
ASM joins semiconductor climate consortium
KLA Launches New Double-Sided Direct Imaging Platform
Micron ships advanced DRAM technology with 1β node
Nor-Cal will do business as Pfeiffer Vacuum
ClassOne Equipment Releases Major New Lot of Used Semiconductor Tools for Resale
Park Systems Celebrates the Merger and Acquisition of Accurion GmbH
Amkor to support European semiconductor ecosystem
Nanometre components require sub-nanometre precision
ALD TechDay for More-than-Moore devices
Cadence Expands Collaboration with Samsung Foundry
Semiconductor Manufacturing Analytics Maturity: Common Barriers and Methods to Advance
Lam Research Pledges $10 Million to FIRST Global
Gigaphoton develops analytics maturity model and assessment ebook
Mycronic receives order for two SLX mask writers
Imec demonstrates flat-panel-display-compatible pMUT technology
An MES Designed for the Future of Semiconductor Manufacturing
Xenics introduces WILDCAT+ 1280
How Semiconductor Fabricators are Working Through Global FFKM Shortages
Eliminating EMI helps ensure accurate test, measurement
Pfeiffer Vacuum Components & Solutions celebrates 25th anniversary
Probe Test Solutions announces $30 million investment

{inStory3}
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the Silicon Semiconductor Magazine, the Silicon Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: