February/March 2021

14 MARKET NEWS Issue 1 2021 Power Electronics Europe www.power-mag.com Optimistic for FY 2021 2021 fiscal year off to a good start for Infineon. Target markets showing dynamic momentum, outlook for the year raised slightly. Production start in Villach for power semiconductors brought forward. Revenue for the three-month period increased from € 2,490 million to € 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. Revenues of the ATV segment during the three-month period rose from € 1,045 million to € 1,150 million quarter-on-quarter, with all lines of business contributing to the 10 percent growth. Demand for components for electric vehicles was particularly brisk. IPC segment revenue rose from € 349 million to € 362 million, up 4 percent quarter-on-quarter on the back of greater demand for renewables and home appliances. Revenue remained at a similar level for industrial drives and decreased in transportation and power infrastructure. PSS segment revenue grew by 3 percent to € 779 million in the first quarter, up from € 759 million in the preceding three-month period. Revenue from sensors increased significantly, while demand for power semiconductors for server, PCs and laptops remained stable on a high level. “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 CEO Dr. Reinhard Ploss. “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.” Based on an assumed exchange rate of $1.20 to the euro, Infineon expects to generate revenue between € 2.5 billion and € 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 declinequarter-on-quarter. For the full FY revenue of around € 10.8billion (plus or minus 5 percent) is expected. 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. “Besides geopolitical and macroeconomic factors, the economic disruption caused by the coronavirus pandemic makes accurate prediction difficult. Key factors influencing the expected development of revenue and earnings during the pandemic will be the progression of global infection rates over time, possible restrictions on economic activities, effects on production and supply chains and the level and effectiveness of governmental stimulus programs“, Ploss concluded. www.infineon.com To receive your own copy of Power Electronics Europe subscribe today at: www.power-mag.com “We continue to benefit from the digitalization push affecting all areas of life. Semiconductors are needed more than ever,” commented Infineon‘s CEO Dr. Reinhard Ploss the first quarter results 2021