“Fiscal year 2014 was a successful year for Infineon, revenue rose to 4.320 billion Euros – an increase of 12 percent”, said Infineon's CEO Reinhard Ploss at the annual press conference end of November. “The fiscal year itself followed the typical pattern, with a seasonal decline in

revenue in the first quarter, followed by three quarters of growth. Compared to the respective quarters of the previous year, revenue in all four quarters of the 2014 fiscal year was significantly higher, mostly with two-digit growth rates.

Two factors contributed primarily to this success. Firstly, we had already geared the company at a very early stage towards growth in demand. And thanks to progress in cycle management, our manufacturing facilities responded quickly and flexibly, and were able to deliver on time. We thus seized the opportunities presented by the growing market”.

The automotive business, Infineon's largest sector, benefited from various developments. Firstly, growth in the global automotive market. This was supported by the market in North America with a revival in spring, the continuing growth in demand in China, and market recovery in Western Europe. Secondly, the above-average sales successes of the three German premium manufacturers. Audi, BMW and Mercedes using a particularly large number of semiconductors into their models, i. e. the new BMW i8 is equipped with 75 Infineon devices particularly in the drive train. Thirdly, an increasing demand for functions that make driving safer and more convenient – especially in mid-range vehicles. And fourthly, the growing demand for solutions that reduce CO₂ emissions. In numbers – revenues increased by 15 % from €1.714 billion in fiscal 2013 to €1.965 billion in 2014. Business in the Industrial Power Control segment (Power Modules) has recovered significantly, mainly due to the sharp rise in demand in the renewable energy and rail transport sectors accompanied by a slow but steady revival in industrial drives. Compared to difficult 2013 fiscal year, revenues increased from €651 million by as much as 20 % to reach a total of €783 million. The Power Management & Multimarket segment grew from €987 million in 2013 to €1.061 billion due to a greater demand for semiconductors in mobile devices. Secondly, the introduction of digital control concepts for DC/DC power supply in servers showed a very pleasing development. Controller and driver ICs and low-voltage MOSFETs benefited from this. Finally, the Chip Card & Security segment grew by 7 % from €463 million to €494 million in 2014.

“We are confident that this overall growth trend will continue. For the whole of the 2015 fiscal year, we expect revenue growth of 8 percent”, Ploss forecasts.

One of the most interesting items is of course the planned $3 billion acquisition of International Rectifier. Infineon has already secured credit lines and is of good hope to close this transaction early in fiscal 2015. “The product portfolios of Infineon and International Rectifier complement each other perfectly. The strengths of International Rectifier lie in its energy-efficient IGBTs, IGBT driver ICs and intelligent power modules for low-power applications, as well as its power MOSFETs and digital power management ICs. We can combine this portfolio very well with our range of discrete IGBTs and modules. By taking over International Rectifier, Infineon is acquiring a technology leader in gallium nitride-based power semiconductors. This will allow us to accelerate and consolidate our roadmap with regard to GaN discrete products and GaN system solutions. The gallium nitride technology platform promises significant growth potential”, Ploss underlined.

Regarding productivity, Infineon performs much better than the US-based fabs of IR. “In particular 300 millimeter wafers translate into 30 percent less investment in relation to revenues. Capacity loading is currently 80 percent”, Ploss stated. But IR also runs a 200-mm fab in Newport/UK, here Ploss refused to comment on closing or keeping this activity. AS