Infineon aims to ramp up in-house production in 2022

German-based automotive and power semiconductor supplier Infineon is planning to ramp up in-house production in 2022 as it expects semiconductor demand to continue to outweigh the supply, according to company CEO Reinhard Ploss.

Ploss said Infineon began fiscal year 2022 (October 2021-September 2022) with a significant revenue increase. The company posted consolidated revenues of EUR 3.16 billion (US$3.61 billion) in the first quarter of fiscal year 2022, increasing 5% sequentially and 20% on year, and a pre-tax profit of EUR717 million.

Ploss expects Infineon to achieve an annual revenue of EUR13 billion for fiscal year 2022, including EUR3.2 billion for the second quarter. He said the company is also planning to invest approximately EUR2.4 billion for the year, with its free cash flow possibly reaching EUR1 billion.

Expressing optimism about Infineon’s shipment prospects for fiscal year 2022, Ploss pointed out that demand for Infineon’s products and solutions remains robust and that the company is gradually expanding its production capacity to keep up with large orders from its clients.

Meanwhile, sources familiar with the global semiconductor supply chain suggested that most of Infineon’s high-end ICs and power modules are developed in-house. They explained that leadframe makers Shuen Der Industry (SDI) and Jih Lin Technology are some of the Taiwan-based companies that have joined Infineon’s supply chain over the years.

As Infineon continues to place a strong emphasis on the development of automotive electronics and high-end power modules, and as demand for leadframe applications in the automotive and industrial control markets grows, industry analysts are expecting Taiwan-based leadframe makers to experience revenue growth in fiscal year 2022.