The chip manufacturer wants to produce more semiconductors in Germany.
(Photo: dpa)
Munich Infineon is building a new plant in Dresden for five billion euros. The company announced on Monday in Munich that the 300 millimeter production capacity for analog and mixed-signal chips as well as for power semiconductors should be expanded. It is the largest single investment in the company’s history. This could create up to 1000 jobs. The supervisory board approved the expansion of production.
“The planned production site is Dresden, subject to appropriate public funding,” the statement said. The factory could go into operation in autumn 2026.
At the same time, the Munich semiconductor manufacturer increased its long-term growth targets. In the future, revenues are expected to increase by more than ten percent per year, which is one percentage point more than previously predicted. The automotive, industrial and renewable energy markets, which Infineon mainly supplies with its chips, showed “increasing dynamics and permanently strong growth factors”, the company justified the investment and the increase in its goals. At 25 (previously: 19) percent, the operating return on sales (segment result margin) should be significantly higher than previously expected.
For the current fiscal year (until the end of September), Infineon expects a margin of 24 percent, sales are expected to increase to 15.5 billion euros with a range of 500 million in both directions. “The 2023 fiscal year that has just begun has got off to a good start,” said Infineon CEO Jochen Hanebeck. Nevertheless, vigilance is required in view of the economic and political uncertainties.
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In 2022, sales soared by 29 percent to 14.2 billion euros. The segment result improved by 63 percent to 3.4 billion euros. The company thus exceeded analysts’ expectations. According to the figures, the share rose by 7.5 percent to EUR 31.43.
In addition, Infineon announced a deal worth billions: the car manufacturer Stellantis secured silicon carbide semiconductors from the Munich chip group. The two companies signed a corresponding non-binding letter of intent, according to information on Monday.
Accordingly, Infineon reserves production capacities and will deliver the power semiconductors directly to the Stellantis suppliers in the second half of the decade.
Overall, it is about a possible volume of well over one billion euros. It’s about chips for electric vehicles from Stellantis. Infineon is preparing for the increasing demand in the industry with significant investments. In 2024, a new silicon carbide factory is scheduled to open in Kulim, Malaysia.
More: Automaker Stellantis benefits from decreasing shortage of semiconductors