Infineon released its financial report for the third quarter of fiscal 2023 on Thursday local time, but the results were lower than expected. The report shows that the company's Q3 revenue was 4.089 billion euros, a year-on-year increase of 13%, slightly higher than market expectations of 4.05 billion euros. However, adjusted profit was 1.067 billion euros, down 10% month-on-month, with a margin of 26.1%, below expectations. Earnings per share were EUR 0.63 and gross margin was 44.5%.
In terms of business division, the revenue of the automotive electronics (ATV) department increased to 2.129 billion euros from the previous quarter, but the profit margin of the segment performance dropped from 31.1% in the previous quarter to 27.4%; the revenue of the green industrial power supply (GIP) department was 565 million euros, the segment performance profit margin was 30.3%, slightly lower than the 32.4% in the previous quarter; the revenue of the power supply and sensing system (PSS) department decreased by 1% to 917 million euros, the segment performance profit margin was 20.8%, slightly lower than the previous quarter's 21.3%; Safety Connected Systems (CSS) segment revenue was 474 million euros, segment performance margin was 25.1%.
Infineon's fourth-quarter guidance sparked concerns about the chipmaker's profitability, sending the company's European shares down the most in more than two years. After the financial report was announced, Infineon's European stock price fell by 10% at one point, the biggest intraday drop since 2020. Still, the stock has risen 23% this year.
Infineon Chief Executive Jochen Hanebeck said trends in the semiconductor market remained "uncertain" with low demand for consumer electronics such as personal computers and smartphones despite increased demand for electric vehicles and new energy sources.
In order to adapt to market changes, Infineon plans to expand its Kulim plant in Malaysia and make it the world's largest 8-inch silicon carbide power plant. The total investment in the project is planned to increase from 2 billion euros to 7 billion euros. It is reported that the expansion plan of the Kulim factory has obtained a design-win contract of about 5 billion euros and an advance payment of about 1 billion euros. Ke Wubian's clients include Ford, Chery, SAIC Motor, SolarEdge and three Chinese photovoltaic manufacturers. In addition, Infineon is also undertaking a 5 billion euro semiconductor plant expansion in Dresden, Germany, and opened a new plant in Villach, Austria, aimed at producing silicon carbide products.
While adapting to the uncertain market environment, Infineon is also actively adopting expansion projects to enhance its competitiveness. These investments will help strengthen Infineon's position in the semiconductor field and lay the foundation for the company's future growth.
About Infineon：
On April 1st, 1999, Siemens Semiconductors became Infineon Technologies. A dynamic more flexible company geared towards success in the competitive, ever-changing world of microelectronics.
Infineon is a leading global designer, manufacturer and supplier of a broad range of semiconductors used in various microelectronic applications. Infineon's product portfolio consists of logic products, including digital, mixed-signal, and analog integrated circuits, as well as discrete semiconductor products.
Infineon related products：
- RF Switches
- RF Transceiver ICs
- RF Transceiver Modules and Modems
- RF Transmitters
- RFID Evaluation and Development Kits, Boards
- RFID Transponders, Tags
- RFID, RF Access, Monitoring ICs
- Solid State Relays
- Specialized ICs
- Specialized Sensors
- Temperature Sensors - PTC Thermistors
- Thyristors - SCRs
- Thyristors - SCRs - Modules
- Transistors - Bipolar (BJT) - Arrays
- Transistors - Bipolar (BJT) - Arrays, Pre-Biased
- Transistors - Bipolar (BJT) - RF
- Transistors - Bipolar (BJT) - Single
- Transistors - Bipolar (BJT) - Single, Pre-Biased
- Transistors - FETs, MOSFETs - Arrays
- Transistors - FETs, MOSFETs - RF
- Transistors - FETs, MOSFETs - Single
- Transistors - IGBTs - Modules
- Transistors - IGBTs - Single
- Transistors - JFETs
- Transistors - Special Purpose
- TVS - Diodes
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