© 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.
TSMC's looking to expand with new chip plant in Japan During an online earnings briefing, TSMC CEO C. C. Wei, announced the company's intention to build a specialty technology fab in Japan.
Bosch to set up R&D centre for automotive electronics in Ireland The German engineering and technology company has announced that it will establish an automotive R&D centre in Limerick, Ireland, creating over 30 new jobs over the course of the next two year.
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).
RFMW and CML Microcircuits ink global distribution agreement RFMW and CML Microcircuits (USA) Inc. announces that the companies are expanding their business relationship. Their existing distribution agreement has now been widened to include global marketing and sales of the CML product portfolio.
New Yorker Electronics acquires Omni-Pro Franchised distributor of passive electronic components and discrete semiconductors, New Yorker Electronics, announces that it has acquired Omni Pro Electronics, Inc., an electronic component distributor, located in Addison, Texas.
Pepperl+Fuchs adds to its capacity with a new facility Pepperl+Fuchs has officially opened its new production site in Trutnov, Czech Republic. This marks the conclusion of a project which started in 2019 and will allow the company to strengthen its position as a producer of industrial sensors.
RISC-V player announces expansion of US operation Andes Technology USA Corp., the HQ of the North America operations of Taiwan-based Andes Technology Corporation, a supplier a RISC-V processor cores, is planning a major expansion of Its US operation.
Sponsored content by HamamatsuModuł C14093 do detekcji promieniowania rentgenowskiego metodą Dual Energy Moduł został wyposażony w matrycę fotodiod do detekcji rentgena. 32-elementowa linijka na wierzchniej stronie przeznaczona jest do detekcji promieniowanie o niskiej energii, a 32-elementowa linijka na spodniej stronie do detekcji promieniowania z wyższego zakresu. Każda linijka połączona jest ze scyntylatorem.
NXP Semiconductors names new CFO NXP Semiconductors announces that the company names Bill Betz has been named NXP’s Executive Vice President and Chief Financial Officer, effective immediately.
GlobalWafers / Siltronic deal gets a green light from the US GlobalWafers has provided an update regarding its ts all-cash tender offer for the outstanding ordinary shares of Siltronic AG.
Samsung starts mass production of its 14nm EUV DDR5 DRAM Samsung Electronics says that it has begun mass producing its 14-nanometer DRAM, based on extreme ultraviolet (EUV) technology.
Schurter completes its latest Swiss expansion The new construction and conversion of the Schurter Group headquarters in Lucerne, Switzerland has been completed.
Sponsored content by KyzenThe Effects of pH: Cleaning Agent Properties and Performance in Production As cleaning agents evolve to meet customer and supplier environmental challenges, we take a closer look at the effect of pH cleaning agent properties and performance including material compatibility and rinsing behavior all while answering questions with SIR data.
UK is off the table for potential Intel fab after Brexit The UK would have been a potential site for an Intel fab, but not after Brexit, Intel CEO Pat Gelsinger told the BBC.
Solution from Fingerprint Cards integrated in new Honor MagicBook Swedish biometrics company, Fingerprint Cards, announces that the the company’s new biometric solution for the PC market is integrated in the new HONOR MagicBook V14.
Kanthal sells its semiconductor capital equipment business Heating technology company Kanthal announces that it has reached an agreement to divest its semiconductor capital equipment business to Yield Engineering Systems, Inc. (YES), headquartered in Fremont, California, USA.
Sponsored content by iTACiTAC presents milestone at productronica 2021: MES becomes MOM The MES specialist iTAC Software AG will present an important milestone in its product development at productronica 2021: The iTAC.MES.Suite becomes the iTAC.MOM.Suite. The company is thus decisively further developing the existing Manufacturing Execution System for the digitalized factory world. The solution, which is being developed in cooperation with iTAC's holding company Dürr AG, has significant new features for controlling, optimizing and predicting production processes in real time. It is based on a completely new, open architecture and can therefore be integrated into existing ecosystems. iTAC will be attending the trade fair from November 16 to 19, 2021 in hall A3 at booth 161.
GaN power IC supplier opens new office in China Navitas Semiconductor, a provider of gallium nitride (GaN) power ICs, has opened a new office in Shenzhen, China which offers the company 300% increase in capabilities to support revenue growth in the region.
Generating very low voltages with standard regulators Question: What is a good solution for generating a tiny dc supply voltage of a few hundred millivolts?
SiPearl opens new design center in France Microprocessor designer SiPearl has opened yet another European design center, this time in Grenoble, France.
Infineon plans to increase investments by 50% next year The German chip manufacturer has provided its investors with an update on its strategy, business performance and long-term perspective as well as on the outlook for the fiscal year 2022.
Sponsored content by Rochester ElectronicsThe POWER of Authenticity and Reliability Critical End-of-Life Component Management
Product lifecycles typically extend far beyond active semiconductor component availability, making lifecycle status a key factor when planning, at any phase, in the new product introduction (NPI) process.
HEICO subsidiary acquires specialised electronics company HEICO Corporation's dB Control subsidiary has acquired 100% of Paciwave, Inc. The RF and microwave specialist is HEICO's 6th acquisition this year.
TI might not be done with Sherman Early last year the news that Texas Instruments disclosed that it planned to close two wafer plants within three to five years. The plants in question were two 50+ year old factories, located in Dallas and Sherman. But TI might not be done with Sherman just yet, the city is a finalist for a new multi-billion dollar production plant.
Business is booming for Flip - Moves into expanded location Flip Electronics has had major success and growth in the last five years. So much so that the authorised distributor of obsolete and excess semiconductor and electronic components recently moved from a 12,000 square feet facility to a new one which provides the company with a total of73,000 square feet.
Marvell completes its acquisition of Innovium The provider of infrastructure semiconductor solutions has completed its acquisition of Innovium, Inc.,and thus broaden its portfolio of silicon solutions targeting cloud data centers.
Cree is no more - welcome Wolfspeed Following a massive four-year transformation, involving the divestiture of two-thirds of the business and a repositioning of the company’s overall core strategy, the company formerly known as Cree is now officially Wolfspeed.
US semiconductor distributor opens office in Germany Smith, a global distributor of electronic components and semiconductors, today announces the opening of its sales office in Berlin, Germany.
Qualcomm and SSW Partners win the battle for Veoneer Qualcomm Incorporated and investment firm SSW Partners, have reached a definitive agreement to acquire Veoneer, Inc. for USD 37.00 per share in an all-cash transaction, representing a total equity value for Veoneer of USD 4.5 billion.Load more news