Infineon sees market weakness ahead after results: Page 2 of 2

May 08, 2019 //By Christoph Hammerschmidt
Infineon sees market weakness ahead after results
After a previous profit warning, Infineon saw better than expected results in the first quarter of 2019 and warns of weakness in the market this year.

Despite the current market weakness, the chip manufacturer is sticking to its strategic investments. Ploss continued: "The long-term prospects in key target markets such as electromobility, automated driving, renewable energies, data centers and mobile communications are excellent.”

Regardless of the presentation of the quarterly figures, Hans Adlkofer, head of Infineon's Automotive division, was very optimistic about the semiconductor manufacturer's future at an event. In a speech at the Cadence Design Systems user meeting, Adlkofer predicted that electromobility would lead to a significant increase in demand for semiconductors for vehicles. While today's cars contain semiconductors with an average value of $375 ($475 for Mild Hybrid vehicles in 48V technology), this value would rise to 750 dollars for battery electric vehicles, of which $455 will be for power semiconductor. The company also anticipates an increase in electric vehicles (48V mild hybrid, plug-in hybrid and battery electric vehicles) from 5.5 million units in 2018 to 38 million units in 2025, resulting in a multiplication of power semiconductor fabs - Adlkofer expects 7 to 9 times as many production facilities in 2030 as today. 

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