© Infineon Components | February 16, 2021
Infinion brings production start in Villach forward
Revenue for the three-month period increased from EUR 2,490 million to EUR 2,631 million quarter-on-quarter, with all segments contributing to the 6 percent growth despite the weaker US dollar, the manufacturer states in their latest fiscal.
“Infineon has made a good start to the new fiscal year. Despite headwinds from a weak US dollar, we recorded significant increases in both revenue and earnings in the first quarter. In addition to the economic recovery in some regions, we continue to benefit from the digitalization push affecting all areas of life. Semiconductors are needed more than ever,” said Dr. Reinhard Ploss, CEO of Infineon. "We are monitoring ongoing risks closely. Nevertheless, in view of dynamic ordering momentum and manufacturing plants running at good utilization rates in the majority of product areas, we are making a slight upward adjustment to our outlook for the full year. We are increasing our investments in manufacturing capacity and bringing forward the starting date for the new power semiconductor plant in Villach to the last quarter of the current fiscal year." Group performance in first quarter of 2021 fiscal year Revenue for the three-month period increased from EUR 2,490 million to EUR 2,631 million quarter-on-quarter, with all segments contributing to the 6 percent growth despite the weaker US dollar. Revenue grew particularly strongly in the Automotive (ATV) segment. The Industrial Power Control (IPC) and Power & Sensor Systems (PSS) segments also recorded marked increases, while the Connected Secure Systems (CSS) saw a slight improvement compared to the previous quarter. Infineon’s gross margin rose from 31.8 percent in the previous three-month period to 37.4 percent in the first quarter of the current fiscal year. The adjusted gross margin improved from 36.6 percent to 40.3 percent quarter-on-quarter. The Segment Result rose considerably from EUR 379 million to EUR 489 million, pushing up the Segment Result Margin for the quarter from 15.2 percent to 18.6 percent. In addition to a sharp decrease in underutilization costs, non-recurring items – such as research subsidies received and patent-related revenue – also contributed to the improvement. Operating income rose from EUR 182 million to EUR 332 million quarter-on-quarter. The financial result improved from negative EUR 28 million to negative EUR 26 million Investments – which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs – totaled EUR 283 in the first quarter of the current fiscal year, compared with EUR 332 million in the preceding three-month period. Depreciation and amortization decreased from EUR 379 million to EUR 368 million quarter-on-quarter. Free cash flow generated totaled EUR 313 million, down from EUR 387 million one quarter earlier. Net cash provided by operating activities from continuing operations amounted to EUR 588 million, compared to EUR 747 million in the final quarter of the preceding fiscal year Outlook for the second quarter of the 2021 fiscal year Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of between EUR 2.5 billion and EUR 2.8 billion in the second quarter of the 2021 fiscal year. Revenue generated by the ATV and PSS segments is predicted to grow by a low-single digit percentage compared to the previous quarter. Revenue in IPC is expected to remain at a similar level to the previous quarter while revenue of the CSS segment should see a low-single digit percentage decline quarter-on-quarter. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at about 16.5 percent. Outlook for the 2021 fiscal year Based on an assumed exchange rate of USD 1.20 to the euro, Infineon expects to generate revenue of around EUR 10.8 billion (plus or minus 5 percent) in the 2021 fiscal year. Particularly for the ATV and PSS segments, revenue is expected to grow during the second half of the fiscal year, driven by continued market momentum. At the mid-point of the guided revenue range the Segment Result Margin is expected to come in at about 17.5 percent. Investments in property, plant and equipment and other intangible assets, including capitalized development costs, are planned to be around EUR 1.6 billion for the 2021 fiscal year. Depreciation and amortization are expected to amount to between EUR 1.5 billion and EUR 1.6 billion, of which approximately EUR 500 million is attributable to depreciation and amortization from purchase price allocations arising mainly in connection with the acquisition of Cypress and to a lesser extent with the acquisition of International Rectifier. Free cash flow is predicted to exceed EUR800 million.
Marvell and Fujitsu partner to deliver 5G baseband technology Fujitsu has selected Marvell's baseband processor silicon to power its new 5G New Radio (NR) base station offerings.
With the shortage still weighing heavy ADI delays fab closure In January Evertiq reported that Analog Devices was planning to permanently close its facility Milpitas, California.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
Tower Semi invests to expand its manufacturing capabilities The company is planning a capacity expansion for 200mm and 300mm to answer the exceeding demand forecast.
Synchronous Rectification on the Secondary Side Question: How can I increase the efficiency of my isolated power supply?
Biden to push for $37 billion to boost chip manufacturing US President Joe Biden has responded to the industry’s call to reinvigorate domestic semiconductor manufacturing. The president is pushing a USD 37 billion bill to identify solutions to the semiconductor shortfall.
Kioxia starts the expansion of its Yokkaichi Plant Kioxia has started the construction of new fabrication facility at its Yokkaichi plant, located on the Mie Prefecture, Japan, to support the production of sixth-generation 3D flash memory.
Mycronic receives US order for two SLX systems The Swedish technology company has received an order for two SLX mask writers from an unnamed, but existing customer in the USA. The total order value is between USD 8 and 12 million.
HP to acquire HyperX in a $425 million HP Inc. has entered into a definitive agreement to acquire HyperX, the gaming division of Kingston Technology Company, for USD 425 million.
TSMC ranks in Top10 in three wafer size categories As of December 2020, only TSMC—the world’s largest foundry—was listed among the wafer capacity leaders in each of the three wafer size categories. It had the most 200mm wafer capacity last year and ranked second, trailing only Samsung, in 300mm wafer capacity.
SK Hynix ink $4.3 billion deal with ASML The Dutch supplier of semiconductor equipment has signed a five-year long deal, worth USD 4.3 billion, with SK Hynix as the South Korean company works to secure equipment to boost it output.
Microchip invests $20M in new Irish development centre Up to 200 new engineering jobs will be created in Cork, Ireland as Microchip Technology invests USD 20 million to create a new development centre.
Explosive growth in Automotive DRAM demand expected Driven by such factors as the continued development of autonomous driving technologies and the build-out of 5G infrastructure, the demand for automotive memories will undergo a rapid growth going forward, according to TrendForce’s latest investigations.
Renesas Naka facility is back to full operation Following the earthquake that hit the coast of Fukushima Prefecture and the surrounding areas on February 13, Renesas shut down production at its Naka factory to investigate potential damages. Since then then company has brought the plant back online bit by bit.
Rücker Lypsa is now EDAG Engineering Spain Barcelona-based company Rücker Lypsa S.L. has been operating under the name of "EDAG Engineering Spain, S.L." since January, 2021.
Continental invests in German-US AI chip start-up Continental has acquired a minority stake in the German-US start-up Recogni, a company working on a new chip architecture for object recognition in real time based on artificial intelligence (AI).
Edmund Optics opens new assembly and design facility Edmund Optics, a provider of optical and imaging components, has opened a new Assembly and Advanced Design Facility in Tucson, Arizona, the second Edmund Optics location in the state.
SEMI calls on Biden to reinvigorate US semiconductor manufacturing SEMI, along side 16 industry groups have sent a letter to President Biden urging the administration to bolster domestic semiconductor manufacturing and research.
Solas OLED settles patent disputes with LG Display Solas OLED, an Irish company that specialises in OLED technologies that it licenses to consumer electronics manufacturers, has entered into a Settlement and License Agreement with LG Display, resolving a number of patent infringement actions brought by Solas against LG Display and a certain number of its customers, including Sony.
Panthronics seals global partnership agreement with AdvanIDe Panthronics AG, a fabless semiconductor company specialising in high performance wireless technology, has signed a global partnership agreement with specialist supplier of NFC, RFID and smart card components, AdvanIDe.
Logic ICs account for the largest share of China’s IC market China became the largest IC market in the world in 2005 and has continued to grow in size since then. In 2020, the Chinese IC market increased to USD 143.4 billion, a 9% gain from USD 131.3 billion in 2019.
Why Is my processor leaking power? That sounds like an open-ended question Question: Why is my processor consuming more power than its data sheet suggests?Load more news