Infineon sees increase in revenue despite headwinds
“Demand for semiconductors is unbroken, as they play a key role in enabling the energy transition and digitalization. Currently, however, the market is faced with an extremely tight supply situation,” Dr. Reinhard Ploss, CEO of Infineon says in the company's quarterly report.
"Inventories are at a historic low; our chips are being shipped from our fabs straight into the end applications. Under these circumstances, any pandemic-related restrictions on manufacturing, such as those recently imposed in Malaysia, are especially grave. We are doing our utmost to improve matters along the entire value chain and are working as flexibly as possible in the best interests of our customers. At the same time, we are continuously building up additional capacity," says the CEO. The semiconductor giant recorded third quarter revenues of EUR 2.722 billion, compared with EUR 2.174 billion for the same period last year. Despite continued strong demand, revenue grew by only 1% due to pandemic-related constraints on the company's manufacturing capacity in Melaka, Malaysia, and the aftermath of the winter storm in Austin, Texas. Net income for the period amounted to EUR 245 million, a clear improvement from a loss of EUR 128 million during the same quarter 2020. For the final quarter of 20201 the company expects revenue of around EUR 2.9 billion, for the full fiscal year Infineon predicts revenues of about EUR 11 billion.