The semiconductor major has enhanced its long-term financial targets after witnessing a remarkable FY22
Germany-based Infineon Technologies recently released its results for the fourth quarter and for the full fiscal year, both of which ended on 30 September 2022. The report showcased that the company generated a €4.143 billion revenue in 4Q22, and €14.218 billion of total revenue in FY 2022. It is noteworthy that the supervisory board approved further planning for the construction of a new factory for 300-millimetre analog/mixed-signal and power semiconductors for about €5 billion in Dresden (Germany). For FY22 dividends, the notification charted out the increase from €0.27 to €0.32 per share.
The official statement specified that Infineon Technologies AG is increasing its target operating model with over 10% revenue growth (previously 9% +), 25% Segment Result Margin (previously 19%) and 10 to 15% adjusted Free Cash Flow of revenue, in each case over the cycle.
Infineon CEO Jochen Hanebeck remarked: “Decarbonization and digitalization are causing structurally increasing demand for semiconductors. Infineon will benefit disproportionately from this development thanks to its strategic positioning. This dynamic has further accelerated, so now is the right time for us to define an even more ambitious target operating model.”
Furthermore, he added, by the planned investment in a new factory we are continuing the consistent execution of our strategy and are broadening the base for our accelerated profitable growth trajectory in a forward-looking way. “We are pleased to have political support for an investment at the Dresden site (Germany) and we are counting on adequate funding through the European Chips Act. We concluded the challenging 2022 fiscal year very successfully, with an excellent fourth quarter. The 2023 fiscal year has also started well. In view of ongoing macroeconomic and geopolitical uncertainties, heightened vigilance is required in the coming quarters. We are prepared to act swiftly and flexibly if necessary.”
The company presented the outlook for FY 2023 as, “Based on an assumed exchange rate of US$1.00 to the euro, the revenue of around €15.5 billion (plus or minus €500 million) is anticipated for the 2023 fiscal year, with an adjusted gross margin of around 45 per cent and a Segment Result Margin of around 24 per cent at the mid-point of the guided revenue range.” The notification also pointed out that investments of around €3.0 billion are planned.
Neubiberg-headquartered Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Its products and solutions are aimed at driving decarbonization and digitalization. The 1999-born company has around 56,200 employees worldwide.