|Infineon gears up for stronger long-term growth|
"A broad range of structural trends will drive growth in the coming years: electro-mobility, renewable energies, factory automation, data centers and a steadily increasing number of battery-powered, connected devices," points out Dr. Reinhard Ploss, CEO of Infineon. "Thanks to our leading technologies and differentiated manufacturing expertise, we have established an excellent position in the markets in which we operate. We are determined to exploit the opportunities that result from this and, accordingly, apply a rigorous approach to investing. Our current plans are aimed at providing the necessary level of manufacturing capacity to meet expected growth. It is currently forecast that, by the middle of the coming decade, more than half of the power semiconductors produced by Infineon will be manufactured on 300 mm wafers (in Dresden/Germany and Villach/Austria).This will enable us to improve our profitability further, despite higher depreciation expense".
In view of the current strength of the order book and based on a euro/US dollar exchange rate of 1.20, Infineon expects revenue to grow at least in the coming 2019 fiscal year by a minimum of 10 percent. For the fiscal years following this accelerated growth period, Infineon assumes that revenue will grow at an average annual rate of 9 percent (previously 8 percent).
Given that this superior growth is being driven in particular by strong demand for power semiconductors – an area in which Infineon’s in-house manufacturing capabilities provide a competitive advantage – it is necessary to adjust the investment-to-sales ratio:
On 12 June 2018, Infineon will hold a Capital Markets Day for investors and analysts in London, during which its strategy and realigned target operating model will be explained in more detail. The presentation documents and statements will be made available via live stream and subsequently as recordings on the internet.
This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.
These statements are based on assumptions and projections s resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business performance may therefore differ materially from what has been expected.
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2017 fiscal year (ending 30 September), the Company reported sales of around €7.1 billion with about 37,500 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).
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