Infineon plans 5 billion euro site in Dresden and raises its targets

BERLIN, Nov 14 (Reuters) – Infineon Technologies AG (IFXGn.DE) is planning a new 5 billion euro ($5.16 billion) factory in the eastern German city of Dresden to expand its 300-millimeter production capacity, the chipmaker announced on Monday. German, while raising its long-term financial objectives.

The plant, subject to adequate public funding, could come into operation in the fall of 2026 and create up to 1,000 jobs, Infineon added.

When operating at full capacity, the planned plant would have the potential to generate annual revenues equal to the level of the investment, he added.

The company has also raised its future growth targets and now expects its average rate of revenue growth to be over 10% per year, up from 9% previously.

The chipmaker said it expects growth driven in particular by electromobility, autonomous driving, renewable energy, data centers and the so-called Internet of Things – in which things such as appliances, factory equipment and health monitors are connected to the Internet or other communication networks. .

The segment’s profit margin should also reach an average level of 25% against 19% to date.

Infineon is already expecting a 24% margin for its current fiscal year to the end of September, with sales forecast to reach 15.5 billion euros plus or minus 500 million.

Managing Director Jochen Hanebeck said the new financial year had started well. But he added: “Given the continuing macroeconomic and geopolitical uncertainties, heightened vigilance is warranted over the coming quarters.”

In fiscal 2022, Infineon saw revenue rise 29% to 14.2 billion euros, while segment profit jumped 63% to 3.4 billion euros, beating industry expectations. analysts on both counts.

Following the earnings announcement, Infineon shares rose 7.5%.

($1 = 0.9681 euros)

Reporting by Alexandre Huebner; written by Miranda Murray and Rachel More; edited by Jonathan Oatis

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