Infineon, Germany’s second largest chip maker, experienced extremely serious supply and inventory problems in the third financial quarter of this year. The company has been put in an extremely difficult position by further plant closures in Asia due to the epidemic, which is very bad news for mainly automotive suppliers whose direct supplier is the German chip maker.
The suffering is fundamentally well reflected in Infineon’s quarterly results, so with continued oversupply, the company’s revenue was able to grow by just 1% year-on-year to € 2.72 billion, falling short of preliminary analyst expectations. At the same time, the profit margin increased slightly due to demand-driven prices, reaching 18.2%, the company reported.
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During the presentation of the quarterly results, the company’s management announced that the company’s inventory volume had dropped to a historic low, so that all manufactured semiconductors are immediately transferred from the factory to the partners. In such a situation, any plant closure poses further significant difficulties which can only be remedied in the longer term by increasing production capacity or setting up new production plants, such as the plant in Villach, which is being built in neighboring Austria.
Europe’s largest chip maker, French-Italian STMicro, whose CEO Jean-Marc Chery told Reuters last week, he saidthat the company is expected to be able to deliver only 70% of the total order backlog this year, this rate – if the global epidemic situation does not worsen significantly – could be only 85-90% next year, while the situation will “normalize” at best 2023 can be expected.
Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.
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