“We had a good start into the new fiscal year,” stated Dr. Reinhard Ploss, CEO of Infineon. Whereas revenue in the Power Management & Multimarket (PMM) and Industrial Power Control (IPC) segments decreased due to seasonal factors, revenue generated by the Automotive (ATV) segment continued to rise. ATV segment revenue increased by 2 percent to €705 million in the first quarter of the 2017 fiscal year, compared with €691 million in the preceding quarter. Continued high demand for driver assistance systems and products deployed in hybrid and electric vehicles more than offset slightly lower demand in other product lines related to the seasonal development. “In the first quarter revenue and earnings were better than expected, driven in particular by strong demand for our components for automotive electronics and MOSFET power transistors. We expect to achieve further growth in our markets during the coming months and, based on the long-term trends, also remain optimistic about the future. We confirm our forecast for the current fiscal year: higher revenue, earnings and margin”, Ploss continued.

Based on an assumed exchange rate of $1.10 to the Euro, revenue growth for the 2017 fiscal year is forecasted of around 6 percent. revenue guidance. The ATV segment is expected to grow at a substantially faster rate than the Group average. Growth in the IPC segment is forecast to be roughly in line with or slightly higher than the Group average. PMM – to which the Gallium Nitride (GaN) components belong - is expected to grow below the Group average. According to Ploss the GaN business will ramp-up in DC/DC converters, but is still in the starting phase. Regarding technology, the focus now is on normally-off from Infineon’s partner Panasonic with their X-GaN devices. Regarding Silicon Carbide, the acquisition of Wolfspeed is on track. “We believe to close this transaction in the first calendar quarter and to integrate Wolfspeed’s technology and organization within one year”, Ploss underlined. AS

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