Semiconductor Industry - Hope for a halt to the downward trend at Infineon
Semiconductor giant Infineon is presenting its numbers for the third quarter today. The trend has been downward in recent quarters, with the chip market tense. The industry is grappling with high inventory levels, and demand for consumer-facing applications is sluggish. Even growth in automotive chips has slowed due to a dip in electric vehicle demand in Western markets.
Infineon's revenue and results have declined significantly in recent quarters. The company has already had to lower its forecast for the current fiscal year 2023/24 twice. To counter this, the company is implementing a cost-cutting program. For the third quarter, Infineon has announced a halt to the downward trend in revenue, with sales expected to rise to 3.8 billion euros, from 3.6 billion in the previous quarter.
Analysts predict that the crucial automotive segment, as well as the Green Industrial Power segment, which includes business with chips for renewable energy and energy infrastructure, should also show signs of recovery. The area of power control semiconductors is also expected to grow.
The downturn in revenue for Infineon, primarily due to reduced demand in the electric vehicle market and sluggish consumer-facing applications, has led to a decrease in the manufacture of electrical equipment. To combat this, Infineon is focusing on expanding its business in segments like automotive and renewable energy, which involves an increase in the manufacture of relevant electrical equipment.
