German companies are the top car suppliers with the highest turnover
Among the world's largest automotive suppliers, Bosch, ZF, and other German corporations occupy top spots. However, according to a ranking of the most profitable suppliers by revenue last year by consulting firm Berylls, three semiconductor companies - Japan's Renesas, Switzerland's ST Microelectronics, and Munich-based chipmaker Infineon - lead by a significant margin with operating profit margins of over 25 percent of revenue.
This is attributed to the high demand driven by the increasing importance of software, analysts wrote. "However, the outlook for 2024 doesn't look quite as bright": semiconductor manufacturers have expanded their production capacities but now face a sluggish automotive market; demand for semiconductors and processors has plummeted. "Significantly lower but still above-average margins are expected for 2024 and 2025."
Despite being renowned in the automotive industry, German corporations like Bosch and ZF still struggle to maintain their profitability in the semiconductor market, with Infineon being the only exception. Interestingly, Infineon, headquartered in Munich, Germany, continues to outperform its competitors in terms of profitability.
