With falling demand, challenges loom

Infineon, Germany’s leading semiconductor maker, is facing headwinds as it navigates a period of sluggish demand and inventory corrections. The company’s CEO expresses concern about the current semiconductor depletion in the automotive sector and warns of possible supply shortages reminiscent of post-pandemic shortages if inventories are reduced too drastically. In addition to this cautious outlook, Infineon expects rising costs for underutilized production facilities, potentially amounting to around 1 billion euros.

Financial forecasts and market outlook

For the 2024/25 financial year, Infineon expects a slight decline in sales and a segment profit margin in the mid to high ten percent range, which corresponds to a decrease compared to the previous year. Despite these challenges, the company plans to maintain its dividend at 0.35 euros per share. The semiconductor giant expects business to develop subdued, with the current growth impulses being limited primarily to the area of artificial intelligence. The cyclical recovery is delayed as customers continue to reduce their high inventory levels, clouding the near-term demand outlook and potentially impacting Infineon’s market position.

Infineon shares: New analysis – November 12th

New Infineon information published. What impact does this have for investors? Our latest independent report examines current figures and market trends.

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