Infineon Sees Record Revenue and Strategic Investments for 2023 Fiscal Year, Sets Ambitious Goals for 2024

Infineon Technologies, a leading semiconductor solutions provider, has concluded its fiscal year 2023 on a high note, marking record revenue and substantial growth. The company reported a Q4 FY 2023 revenue of €4.149 billion, representing a 1 percent increase from the previous quarter.
Infineon Connected Secure SystemsFor the entire FY 2023, Infineon Technologies reported a revenue of €16.309 billion, marking a remarkable 15 percent increase compared to the previous year, setting new records for revenue and profitability.

Jochen Hanebeck, CEO of Infineon, in its earnings report, attributed these results to the company’s more ambitious strategic direction set a year ago.

In the breakdown of segments:

The Automotive (ATV) segment displayed consistent growth, with Q4 revenue reaching €2.162 billion, primarily fueled by increased demand in electromobility and driver assistance systems.

The Green Industrial Power (GIP) segment observed a 3 percent increase in revenue, reaching €582 million, driven by rising demand in renewable energy, energy infrastructure, and industrial automation.

The Power & Sensor Systems (PSS) segment experienced a marginal 1 percent decrease in revenue, settling at €912 million in Q4. While certain sectors like microinverters for solar systems and electric vehicle charging stations exhibited growth, other areas faced weaker demand.

The Connected Secure Systems (CSS) segment witnessed a 3 percent increase in revenue, climbing to €490 million, primarily attributed to increased revenue in government identification, payment, and authentication, offsetting declines in IoT applications.

Looking ahead to FY 2024, Infineon Technologies has set ambitious targets. It anticipates a revenue target of around €17 billion, signifying a growth rate of approximately 4 percent compared to FY 2023. However, segment-wise expectations differ: ATV segment revenue is predicted to grow in the low double-digit percentage range, GIP segment revenue to remain stable, while PSS and CSS segments may see a decline in revenue in the high single-digit percentage range.

Moreover, the company plans significant investments, targeting around €3.3 billion for FY 2024. This includes completing Phase 1 of the manufacturing module in Malaysia for compound semiconductors and initiating Phase 2. Additionally, investments are earmarked for constructing the fourth manufacturing module in Dresden (Germany) and equipment for silicon carbide and gallium nitride-based products.

For the first quarter of FY 2024, Infineon anticipates revenue around €3.8 billion. While ATV segment revenue is expected to remain steady, the GIP, PSS, and CSS segments might experience a decrease in revenue within the mid-teens percentage range.

Infineon Technologies continues to chart a path of growth, emphasizing strategic investments and segment-specific advancements to navigate the dynamic semiconductor landscape in the upcoming fiscal year.