Infineon Technologies AG, a globally recognized manufacturer of power semiconductors, recently released its financial report for the fourth quarter and full year of fiscal year 2023, which ended on September 30, 2023 . The report shows that Infineon achieved significant earnings growth in fiscal year 2023, thanks to growth in electric vehicles, renewable power generation and energy infrastructure.
Analyzing this report in detail, we can see that in the fourth quarter of fiscal year 2023, Infineon's revenue reached 4.149 billion euros (about 32.6 billion yuan), with a net profit of 1.044 billion euros (about 8.2 billion yuan), and a profit margin of 25.2%. For the entire fiscal year 2023, the company's revenue reached 16.309 billion euros (about 128.2 billion yuan), an annual growth rate of 15%; net profit was 4.399 billion euros (about 34.6 billion yuan), an increase of 30%, with a profit margin of 27%.
Among them, Infineon's Automotive Electronics Division (ATV) performed particularly well, contributing 2.16 billion euros in revenue, up 12% year-on-year, making it the company's largest revenue source.
For the outlook for fiscal year 2024, Infineon expects first-quarter revenue of about 3.8 billion euros (about 29.9 billion yuan), assuming a euro-to-dollar exchange rate of 1:1.05, and profitability is expected to reach about 22 percent. For the full year, Infineon expects revenue between 16.5 billion and 17.5 billion euros (about 129.7 billion to 137.6 billion yuan), with a margin of about 24% and an adjusted gross margin of about 45% if calculated at the midpoint of the forecast.
Infineon also mentioned that it expects revenue growth to slow in fiscal 2024 due to weak demand in the personal computer (PC) and smartphone segments. However, the company still plans to invest about 3.3 billion euros (about 26 billion yuan) in fiscal year 2024 and expects free cash flow of 2.2 billion euros (about 17.3 billion yuan) after adjustment.
In terms of strategic layout, Infineon is actively developing its third-generation semiconductor business, especially in the two representative areas of silicon carbide and gallium nitride. The company recently acquired GaN Systems and Imagimob in Sweden, aiming to expand its AI product line. In addition, long-term supply agreements have been signed with local Chinese silicon carbide substrate manufacturers such as Tianyue Advanced and Tianke Heda. In terms of production capacity, Infineon is planning a plant expansion in Malaysia and expects to build the world's largest 200 mm silicon carbide semiconductor wafer fab by 2027, aiming to increase its share of the global silicon carbide market to 30% by the end of 2030.
In terms of market prospects, Infineon is optimistic about the growth of the overall market for third-generation semiconductors. This is especially true in the areas of renewable energy and electric vehicles, where demand for semiconductors remains strong. At the same time, TrendForce Tiburon consulting data also support this view, it is expected that by 2026 the global GaN power components market size will be as high as 1.33 billion U.S. dollars, while the SiC power components market size is expected to reach 5.33 billion U.S. dollars in 2026, and its main areas of application are still electric vehicles and renewable energy.
