Infineon plans major investment in new factory in Dresden
Infineon is planning to continue expanding its 300-millimeter manufacturing capacity, to enable the expected acceleration in growth of analog/mixed-signal and power semiconductors.
With a planned total investment of EUR 5 billion, this would be the largest single investment in Infineon’s history, a press release reads. Thereby, the company would strengthen its position as a global semiconductor player in power systems.
When operating at full capacity, the planned factory would have the potential to generate annual revenue equal to the level of the investment. The new factory is expected to create up to 1,000 new highly qualified jobs and according to planning could be ready to start production in the autumn of 2026.
"By the planned investment in a new factory we are continuing the consistent execution of our strategy and are broadening the base for our accelerated profitable growth trajectory in a forward-looking way. We are pleased to have political support for an investment at the Dresden site (Germany) and we are counting on adequate funding through the European Chips Act. We concluded the challenging 2022 fiscal year very successfully, with an excellent fourth quarter. The 2023 fiscal year has also started well. In view of ongoing macroeconomic and geopolitical uncertainties, heightened vigilance is required in the coming quarters. We are prepared to act swiftly and flexibly if necessary," says Jochen Hanebeck, Chief Executive Officer of Infineon, in the press release.
After "a record 2022 fiscal year", Infineon significantly increases its long-term financial targets.
In its target markets automotive, industrial and IoT applications, as well as renewable energies Infineon sees increasing dynamic and strong structural growth drivers. Because of this, Infineon is upgrading its target operating model, which defines financial targets over the cycle. In the future, based on an exchange rate of USD 1.00 to the euro, the expected average rate of revenue growth will be more than 10%, increased from 9% previously.
The company says that growth will in particular be driven by electromobility, autonomous driving, renewable energies, data centres and IoT, such growth being accompanied by a significant improvement in profitability. In numbers, the Segment Result Margin is expected to reach an average level of 25%, compared with 19% to date.
