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IFX - Infineon Technologies AG News Story

€35.49 0.0  0.1%

Last Trade - 16/04/21

Sector
Technology
Size
Large Cap
Market Cap £40.00bn
Enterprise Value £43.17bn
Revenue £8.04bn
Position in Universe 35th / 1048

UPDATE 1-Infineon says can meet chip demand with help of new Austria plant

Thu 25th February, 2021 10:22am
(Releads with CEO remarks)
    Feb 25 (Reuters) - German chipmaker Infineon  IFXGn.DE  said
on Thursday it was expanding its production capacity to help
address global supply shortages, and would be able to meet the
needs of its customers in the long term.
    CEO Reinhard Ploss said Infineon's new plant in Villach https://www.reuters.com/article/us-infineon-austria-idUSKCN1IJ18G,
 Austria, due to open in late summer, would be capable of
producing enough power semiconductors each year to equip the
drive trains of 25 million electric vehicles.  urn:newsml:reuters.com:*:nASN000SLV
    A semiconductor supply crunch has forced carmakers like
Volkswagen  VOWG_p.DE , Ford  F.N  and General Motors  GM.N  to
idle production after the chip market was swept clean by demand
for higher-margin consumer electronics.  urn:newsml:reuters.com:*:nL8N2KO3Q2
    Analysts say that supply of automotive products like
microcontrollers will remain tight until mid-year as chipmakers
adjust to demand that has snapped back since the outbreak of the
coronavirus pandemic last spring.
    Infineon rode out last year's turbulence relatively well by
building inventory. But it has faced challenges because - like
its competitors - it outsources a share of production to Asian
contract manufacturers that are running flat out.
    With the commissioning of the 1.6 billion euro ($1.95
billion) 'fab' in Villach that makes chips on large, 300
millimetre wafers, Infineon will add a twin to a similar plant
in Dresden, Germany and thereby gain flexibility.
    "This will enable us to control production at the two sites
as if they were one factory," Ploss told shareholders at
Infineon's annual general meeting, being held online for the
first time due to the pandemic.
    Infineon otherwise confirmed its existing guidance for
revenue of 10.8 billion euros in the fiscal year to Sept. 30 and
a profit margin of 17.5%.  urn:newsml:reuters.com:*:nL8N2KA1FY
    Infineon also said it had appointed Constanze Hufenbecher as
chief digital transformation officer, a newly-created a role
that will help integrate its recent $10 billion acquisition of
U.S. Cypress Technologies.
    Hufenbecher joins from Lufthansa Technik, where she was
chief financial officer. A former Infineon employee, she becomes
the fifth member of the management board.
    The supervisory board will, at its next meeting in May,
extend Chief Financial Officer Sven Schneider's contract by a
further five years. Schneider joined Infineon in 2019 from
industrial gases group Linde.
 ($1 = 0.8187 euros)

 (Reporting by Douglas Busvine
Editing by Riham Alkousaa and Thomas Escritt)
 ((douglas.busvine@tr.com; +49 30 220 133 562;))
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