Despite the weakening world economy, business at Infineon is booming. The semiconductor manufacturer can now tackle another multi-billion dollar project. This will create around 1000 jobs in Dresden.
For the semiconductor manufacturer Infineon, the way is clear for the construction of a new factory in Dresden. The board of directors and the supervisory board gave the project the green light, and the Ministry of Economics gave approval for the project to start earlier, explained Infineon. This means that work on the plant can begin.
Infineon is investing a total of around five billion euros in the plant, making it the largest single investment in the company's history. Around one billion euros of this should come from public funding. Power semiconductors are to be manufactured in the plant, and production is scheduled to start in 2026. A total of around 1000 jobs would be created. At full capacity, Infineon can generate annual sales in the amount of the investment volume. Infineon announced the investment in November.
The semiconductor group recently raised its profit forecast slightly despite the weakening global economy. In the first fiscal quarter, business was more profitable than expected thanks to high prices. The automotive industry needs more and more chips for electric vehicles and assistance systems. The energy transition also continues to ensure high demand.
After two strong years, the demand for chips for smartphones, PCs, notebooks, televisions and game consoles is significantly weaker, as is demand for data centers and household appliances. On the other hand, business with the automotive industry - Infineon's largest customer - is booming.
For the current year, Infineon is targeting sales of 15.5 billion euros, but is now expecting a higher profit margin: Instead of 24 percent, 25 percent of sales should remain as operating profit. In the first quarter, sales fell by five percent to 3.95 billion euros, but the operating result rose by five percent to 1.11 billion euros. The margin increased surprisingly to 28 percent.
