Recently, Infineon has experienced strong business growth in automotive, industrial, Internet of Things and security applications. These are all Infineon’s target markets. As part of its long-term planning, Infineon is adjusting its target operating model to set target values ​​for revenue growth, segment profitability, and investment-to-sales ratio for the entire cycle.

"In the next few years, various structural trends will drive growth: electric vehicles, renewable energy, factory automation, data centers, and steadily increasing the number of battery-powered connection devices." Dr. Reinhard Ploss, CEO Infineon. “Because of our leading technology and differentiated manufacturing expertise, we have established a superior position in the markets we operate in, and we are determined to use the resulting opportunities and therefore adopt a rigorous approach to investment. The aim is to provide the necessary manufacturing capacity to meet the expected growth. As the current forecasted that over the next 10 years, more than half of Infineon's production of power semiconductors will be manufactured using 300mm wafers (Dresden/Germany and Villach/Austria). This will enable us to further increase our profitability, despite the higher depreciation expense."

In the next few years, Infineon plans to further invest a total amount as low as 3 million euros to help Infineon develop more business opportunities and respond appropriately to structural changes. In addition, Infineon plans to invest approximately EUR 700 million in front-end cleanrooms and certain large office buildings during the planning period of the next five years. In the recently announced Villach (Austria) investment, this figure includes a 300 mm clean room and R&D building. Implementing these measures on a prescribed scale will temporarily result in a ratio of investment to sales that is much higher than that envisaged by the target operating model.

Today, Infineon will hold the Investor and Analyst Capital Markets Day in London, during which time it will explain in more detail its strategy and the retuned target operating model.