The new chip factory of the German group is scheduled to go into operation in the summer instead of the end of 2021 as announced.
The chip company Infineon is screwing up its forecasts for the current fiscal year and is expanding its capacities more quickly. “In view of the dynamic increase in incoming orders and, in large parts, well-filled production facilities, we are raising our forecast for the year slightly,” said CEO Reinhard Ploss. Infineon is bringing the start date for the new power semiconductor factory in Villach (Carinthia) forward to the last quarter of the current financial year.
The Group's sales are expected to increase by a good quarter to around 10.8 (2019/20: 8.6) billion euros – plus / minus five percent – in 2020/21 (as of September 30), as the company said on Thursday in Neubiberg Munich announced. So far, Infineon had expected around 10.5 billion. The operating return on sales will also benefit from this: it is expected to increase to around 17.5 (13.7) percent, previously the expectation was 16.5 percent.
“In addition to the economic recovery, we are benefiting from the digitalisation boost in all areas of life,” said CEO Reinhard Ploss. The orders would pick up “dynamically”. “Semiconductors are needed more than ever.”
Chip shortages
Car manufacturers in particular, but also machine builders, are already complaining about shortages in chip replenishment. Infineon expects that demand there, but also for sensor chips, will accelerate in the second half of 2020/21. The company therefore wants to put the new factory for power semiconductors in Villach in Carinthia into operation this summer, as Ploss announced. So far, the end of 2021 had been discussed.
The rising demand from the automotive industry was already evident in the first quarter: From October to December, Infineon's sales rose by six percent to 2.63 (fourth quarter 2019/20: 2.49) billion euros. Although the weak dollar dampened development, sales were in the upper range of the expected 2.4 to 2.7 billion euros.
The chip bottleneck was also reflected in the margin: At 18.6 percent, the operating return on sales clearly exceeded own expectations (16 percent). The net profit doubled compared to the previous quarter to 256 (109) million euros.
For the current second quarter, Infineon expects sales of 2.5 to 2.8 billion euros with an almost stable dollar exchange rate. The operating margin is expected to decrease to around 16.5 percent.
