5 billion contract + 1 billion advance payment! Infineon will build the world's largest 8-inch silic
Automotive semiconductors have gradually become the driving force for the strong performance of major manufacturers. According to the latest news released by Infineon, due to the significant growth in revenue from the automotive chip business, its Q2 revenue not only increased by 13% year-on-year, but also will build the world's largest 8-inch silicon carbide power wafer fab in Malaysia.Q2 revenue of 4.09 billion euros
According to Infineon’s performance data for the third quarter of fiscal year 2023, thanks to the growth in demand for automotive chips, Infineon’s revenue increased by 13% year-on-year to 4.09 billion euros, which was higher than analysts’ expectations; the adjusted net profit was 1.067 billion euros, a decrease of 10% month-on-month, and a profit margin of 26.1% lower than expected.
Divided by business, the revenue of the automotive electronics (ATV) sector increased to 2.129 billion euros from the previous month, and the profit margin of the segment performance was 27.4%; the revenue of the green industrial power supply (GIP) was 565 million euros, and the profit margin of the segment performance was 30.3%. 32.4% in the previous quarter; power and sensing system (PSS) revenue fell 1% to 917 million euros from the previous quarter, segment performance profit margin was 20.8%, 21.3% in the previous quarter; safety interconnection system (CSS) revenue 474 million euros, segment performance margin of 25.1%.
Looking ahead, the company expects Q4 revenue to be about 4.0 billion euros, which is lower than market expectations of 4.13 billion euros, and the profit margin of segment performance is about 25%, which is also lower than market expectations of 26%. For the full year of fiscal 2023, revenue is expected to be approximately 16.2 billion euros.
Jochen Hanebeck, CEO of Infineon, said: "We had a strong performance in the past quarter, while the semiconductor market trend continues to be mixed. On the one hand, in the field of electric vehicles, renewable energy and related applications, demand has been strong. High. On the other hand, demand for consumer applications such as PCs and smartphones remains low. Infineon is performing well in this challenging market environment thanks to its structure that continues to focus on digital transformation and the transition to a green economy growth drivers. This is why we are taking a forward-looking long-term approach and investing in additional manufacturing capacity.”
The world's largest 8-inch silicon carbide power fab will be built
The rapid increase in demand for automotive chips has also promoted Infineon's expansion in the field of silicon carbide.
On August 4, Infineon announced that it will significantly expand its Kulim fab in Malaysia, which will build the world's largest 8-inch silicon carbide (SiC) power wafer in addition to the investment plan announced in February 2022. factory.
Behind this expansion plan is the commitment and support of our customers. According to Infineon, the expansion plan of the Kulim factory has received a design-win contract of about 5 billion euros from customers and an advance payment of about 1 billion euros.
Infineon aims to have a silicon carbide revenue of more than 1 billion euros by fiscal year 2025; by 2030, an annual silicon carbide revenue of 7 billion euros and occupy 30% of the global silicon carbide semiconductor market share.
Jochen Hanebeck, CEO of Infineon, said: "The silicon carbide market is showing accelerated growth, not only in the automotive sector, but also in a wide range of industrial applications such as solar energy, energy storage and high-power electric vehicle charging. As Kulim expands, we will ensure our leadership in this market. "
