Infineon Technologies plans a new €5 billion chip facility in Dresden, Germany. The chipmaker said the plant will boost its 300-millimeter capacity while strengthening long-term financial ambitions.
Infineon stated that the factory could begin operations in autumn 2026 and support up to 1,000 jobs if appropriate public funding is obtained.
When fully operational, the envisioned facility reportedly has the ability to produce yearly income equivalent to the amount invested. Infineon has increased its future growth forecasts, expecting more than 10 percent annual sales growth, up from 9 percent.
The chipmaker is optimistic
Infineon believes that electromobility, autonomous cars, clean energy, datacenters, and the internet of things will drive development.
The sector result margin is predicted to increase to 25 percent on average, up from 19 percent. Infineon forecasts a margin of 24 percent for the current fiscal year, which runs through September 30, with sales of roughly €15.5 billion.
According to CEO Jochen Hanebeck, the new fiscal year is off to a good start. However, the executive added, given the continued macroeconomic and geopolitical concerns, caution is essential in the coming period.
Infineon’s sales increased 29 percent to €14.2 billion euros in fiscal 2022 while segment profit increased 63 percent to €3.4 billion euros, beating analysts’ estimates on both counts. Infineon stock rose 7.5 percent when the news was announced.
The organization organized a Startup Night on November 9. Solarnative won the competition by presenting its Smart Energy Home and Power Stick, an extremely small and fast inverter based on eight Infineon chips.