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February 11, 2021

Semiconductors needed “more than ever” – Infineon

Infineon says semiconductors are needed "more than ever" as the challenges facing their shortage continue to be felt.

By Rhodri Morgan

Infineon says semiconductors are needed “more than ever” as the challenges facing their shortage continue to be felt.

The supplier made its comments outlining first-quarter (period ended December, 2020) revenue of EUR2.6bn (US$3.2bn).

Some reports indicate the lack of chips could last for as long as six months, while others estimate volume losses of vehicles to be potentially around 200,000.

Valeo also recently told just-auto it was seeing “very strong tensions” on the semiconductor market and that for now, it had been able to protect its customers.

Many automotive manufacturers source their chip supplies from large semiconductor firms including Infineon, NXP Semiconductors, Nvidia, Renesas and Texas Instruments, but the current penury is causing several suppliers significant headaches.

“Infineon has made a good start to the new fiscal year,” said Infineon CEO, Reinhard Ploss. “Despite headwinds from a weak US dollar, we recorded significant increases in both revenue and earnings in the first quarter.

“In addition to the economic recovery in some regions, we continue to benefit from the digitalisation push affecting all areas of life. Semiconductors are needed more than ever. We are monitoring ongoing risks closely. Nevertheless, in view of dynamic ordering momentum and manufacturing plants running at good utilisation rates in the majority of product areas, we are making a slight upward adjustment to our outlook for the full year.

“We are increasing our investments in manufacturing capacity and bringing forward the starting date for the new power semiconductor plant in Villach to the last quarter of the current fiscal year.”

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