Infineon Reports Strong 15% YoY Revenue Growth in FY2023

Infineon Reports Strong Financial Results

Infineon, a leading semiconductor manufacturer, has announced its financial results for the third quarter of the calendar year (fourth quarter of the fiscal year). The company reported a revenue of €4.149 billion, with a profit of €1.044 billion, resulting in a margin of 25.2%. Additionally, Infineon achieved a free cash flow of €614 million.

Looking ahead, Infineon has set ambitious targets for the year 2024. The company expects to generate revenues of €17 billion, with a margin of 24.2%. This projection demonstrates Infineon's confidence in its ability to sustain growth and profitability in the coming years.

For the fiscal year 2023, which ended on September 30, Infineon reported revenues of €16.309 billion, representing a 15% increase compared to the previous year. The company also achieved a profit of €4.399 billion, marking a significant 30% year-on-year growth. Infineon's margin for the fiscal year was 27%, and it generated a free cash flow of €1.158 billion.

Infineon's free cash flow, adjusted for investments in frontend buildings and the acquisition of GaN Systems, is expected to be around €2.2 billion. The reported free cash flow is projected to be approximately €400 million. These figures highlight Infineon's commitment to strategic investments and its focus on long-term growth opportunities.

Looking specifically at the fourth quarter of the calendar year (first quarter of the fiscal year), Infineon anticipates revenues of around €3.8 billion, with a margin of 22%. This forecast reflects the company's cautious optimism in the face of market challenges.

"In the 2023 fiscal year, Infineon has set new records for revenue and profitability. The results are an initial confirmation of our more ambitious course we embarked on as a company a year ago," said Jochen Hanebeck, CEO of Infineon. "Nevertheless, we find ourselves in an environment that continues to present challenges. We are seeing different trends in our target markets. Structural semiconductor growth in the areas of renewable energy, electromobility – especially in China – and microcontrollers for the automotive industry remains unabated. In contrast, consumer, communication, computing, and IoT applications are experiencing a temporary period of low demand. Overall, we are expecting revenue growth to continue in the 2024 fiscal year but at a slower rate. We are reacting decisively to the market situation. At the same time, we are continuing to implement our strategy consistently with regard to structural growth opportunities and we are reinforcing our leading position in power systems and IoT with long-term investments."