Infineon
Infineon Technologies AG is a German semiconductor manufacturer headquartered in Neubiberg (Munich district), listed on the Frankfurt Stock Exchange. It was established in 1999 by spinning off Siemens' semiconductor business.[1]
According to the Handelsblatt newspaper, Infineon is the largest semiconductor company in Germany and among the world’s top ten semiconductors manufacturers.[2] The company is organized into four segments: Automotive, Green Industrial Power, Power & Sensor Systems, and Connected Secure Systems.[3]
With around 58,000 employees, Infineon generated revenue of €14.96 billion in fiscal year 2024, ending September 30, 2024. Since April 2020, results include the Cypress Semiconductor business acquired by Infineon.[4]
Business activities and segments
Activities by segment
Infineon operates four business segments:
- Automotive (ATV): Provides microcontrollers, power semiconductors, and sensors for automotive applications. Revenue in 2021 was €4.8 billion.
- Green Industrial Power (GIP): Focuses on power semiconductors and modules for energy generation, transmission, and consumption, including solar, wind, and electric vehicle charging infrastructure. Previously named Industrial Power Control until 2023, when it was renamed to reflect sustainability focus. Revenue in 2021 was €1.5 billion.[5]
- Power & Sensor Systems (PSS): Covers chips for efficient power supply and RF applications in consumer electronics, gaming consoles, PCs, mobile devices, and servers. Revenue in 2021 was €3.3 billion.
- Connected Secure Systems (CSS): Delivers security controllers for SIM cards, payment cards, and electronic documents, as well as secure applications for pay-TV, trusted computing, and NFC. Revenue in 2021 was €1.4 billion.
Regional activities
Infineon manages its operations worldwide through regional subsidiaries, with the US hub in Milpitas (California), Asia-Pacific in Singapore, and Japan in Tokyo. In 2021, revenues were split by region: 38% in Greater China, 25% in EMEA (12% in Germany), 16% in APAC (excluding China & Japan), 11% in Americas, and 10% in Japan.
German and Austrian sites
Major German sites include Munich region, Augsburg, Erlangen, Duisburg, Hanover, Regensburg, Karlsruhe; Austrian sites in Villach, Graz, Linz, and Vienna. The Dresden manufacturing facility, founded 1994, employs about 3,250 staff (2023). The Linz-based DICE focuses on radar and communication ICs. Other subsidiaries include IT Services in Klagenfurt, Bipolar joint venture in Warstein (60% Infineon, 40% Siemens Energy), and Industrial Analytics in Berlin (acquired 2022).
Name
"Infineon" is a portmanteau of "infinity" and "aeon", reflecting boundless innovation and longevity.
History
Spin-off from Siemens
Siemens spun off its semiconductor unit in 1999 to better finance the high capital requirements of the semiconductor industry through public markets. Siemens gradually reduced its stake below 50% by 2001 and fully exited by 2006.
2000–2008
On May 1, 2006, Infineon spun off its memory business as Qimonda, listed on the NYSE. Infineon held a majority stake until Qimonda’s insolvency in January 2009. Infineon left the Bavarian employers' association in November 2008.
Since 2009
In 2009 Infineon sold its Wireline Communications segment to Golden Gate Capital (forming Lantiq) and its Wireless Solutions business to Intel (forming Intel Mobile Communications). Facing losses in 2008–09, Infineon raised funds via convertible bonds to stabilize.
Infineon joined the FIDO Alliance in 2013 to support Universal Second Factor (U2F) authentication.
In August 2014, Infineon announced acquisition of International Rectifier, completed January 13, 2015. A planned 2016 purchase of Wolfspeed (Cree Inc.) for $850 million was blocked by CFIUS in February 2017. In October 2016, Infineon invested in Innoluce BV for LiDAR modules. In May 2018, Infineon committed €1.6 billion to expand its Villach plant, completed in September 2021.
In June 2019, Infineon agreed to buy Cypress Semiconductor for about €9 billion, closing in April 2020 as its largest acquisition. In February 2023, Infineon announced €5 billion investment to expand Dresden facility (production from 2026), plus €1 billion state aid; acquired GaN Systems (Canada) for $830 million and Imagimob (Sweden) for edge ML solutions.
Board of Management
- Jochen Hanebeck, Chief Executive Officer
- Sven Schneider, Chief Financial Officer
- Andreas Urschitz, Chief Marketing Officer
- Rutger Wijburg, Chief Operating Officer
- Elke Reichart, Chief Digital and Sustainability Officer
Strategic partnerships
- Globalfoundries: Co-development and manufacturing for 40nm technology
- UMC: Manufacturing cooperation for logic and power semiconductors for automotive
- TSMC: Co-development and manufacturing for 65nm technology
Financial figures
Revenues and key metrics:
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|
| Revenue (EUR million) | 7,063 | 7,599 | 8,029 | 8,567 | 11,060 | 14,218 | 16,309 | 14,955 |
| EBIT (EUR million) | 930 | 1,416 | 1,089 | 433 | 1,310 | 2,684 | 3,894 | 2,147 |
| Total assets (EUR million) | 10,481 | 11,229 | 13,824 | 22,802 | 24,101 | 26,912 | 28,439 | 29,261 |
| Equity (EUR million) | 5,636 | 6,446 | 8,633 | 9,016 | 10,198 | 13,741 | 15,841 | 16,016 |
| Employees | 37,479 | 40,098 | 41,418 | 46,665 | 50,280 | 56,194 | 58,590 | 58,065 |
| Stake | Shareholder |
|---|---|
| 6.83% | BlackRock |
| 3.04% | Norges Bank |
| 3.01% | Amundi |
| Remaining | Free float |
Controversies
Alleged sanctions violations
In August 2023, the F.A.S. reported Infineon chips found in remnants of Russian cruise missiles (Ch-101) used in Ukraine, in breach of EU sanctions. Infineon stated that it cannot fully trace its long supply chains and terminates any distributor that is found to violate sanctions. Critics argue the volume of sales to suspicious buyers indicates negligence in due diligence.[6]
Price-fixing convictions
In 2002 the US DOJ investigated DRAM makers for price fixing. In 2004 Infineon pleaded guilty, paying $160 million in restitution. Four executives served jail terms and fines. In May 2010 the European Commission fined Infineon €56.7 million for DRAM price-fixing with other manufacturers.[7]
Corruption scandal
In July 2005 prosecutors in Munich investigated Infineon executives for bribery, embezzlement, and tax fraud. COO Andreas von Zitzewitz and others were implicated, and he resigned on July 18, 2005.[8]
Corporate ethics
In September 2010 Infineon was included in the Dow Jones Sustainability Index.[9]
Literature
- Gerd Otto, Kurt Rümmele, Hermann Jacobs (eds.), 50 Years of Future: From Siemens Regensburg to Infineon Technologies AG, 2009.
- Jörg Berkner, From Wernerwerk to Campeon: Milestones of Siemens Semiconductors and Infineon, 2013.
External links
- https://www.infineon.com/ (global)
- https://www.infineon.de/ (Germany)
References
- ↑ Source: Unternehmensverband Westfalen-Mitte e.V, "Infineon Technologies AG – 75 Jahre erfolgreich am Standort Warstein", retrieved 2021-09-27
- ↑ Renate Köcher, Handelsblatt, "Manager of the Year: Reinhard Ploss writes an extraordinary success story with Infineon", 2020-12-21
- ↑ Infineon presentation Q2 2023, retrieved 2023-10-16
- ↑ Handelsblatt, "Infineon’s largest acquisition in company history is complete", retrieved 2021-09-27
- ↑ Infineon press release, 2023-04-03
- ↑ Konrad Schuller, FAZ.NET, 2023-08-12
- ↑ dpa-AFX, 2010-05-10
- ↑ FAZ.net, 2005-07-19
- ↑ Elektronik Praxis, 2011-03-31