Infineon more than doubles profit as semiconductor shortages persist

Lead times still lengthy as chipmakers continue to make bank on what little is available


Infineon joined the ranks of chipmakers that are benefiting from the industry-wide global semiconductor shortages, more than doubling profits in a sector where lead times are severely protracted.

Formerly Siemens Semiconductor, the German-based company reported revenue of €3.298 billion ($3.48 billion), up 22 percent year-on-year for Q2 of fiscal 2022 ended March 31 [PDF]. Profit bounced 131 percent to €469 million ($494 million).

Jochen Hanebeck, CEO at chip giant, said in a statement that the business "continues to perform well within an increasingly challenging environment."

"Global uncertainties, in particular the war in Ukraine and the further course of the coronavirus pandemic, are placing stress on supply chains. At the same time, demand for our products and solutions continues to exceed supply significantly," he added.

Infineon is a major supplier to the automotive industry, one that has acutely felt the deficit in chip availability. This was due to inflexible supply chains operated by car manufacturers, which tuned production downwards in the early outbreak of COVID-19 and then struggled to recover capacity.

Carmakers are still scrambling for chips, with Volkswagen's chief finance officer saying last month that he expects underlying structural problems in the supply chain to not be resolved before 2024.

Others including General Motors, Volvo, and Jaguar Landrover said in February that a dearth of chips was costing them vital revenues.

At Infineon, the Automotive division grew 23.1 percent to €1.491 billion ($1.57 billion) during Q2, with the Industrial Power Control unit up 21.7 percent to €430 million ($453 million). Power & Sensor Systems was up more than 25 percent to €925 million ($975 million), and Connected Secure Systems grew 24 percent to €448 million ($472 million).

For the year, Infineon raised its 2022 guidance by €500 million ($526 million) to €13.5 billion ($14.33 billion), so clearly the good times are going to roll for some time for chipmakers.

The semiconductor industry grew more than 26 percent in 2021 to $595 billion and 2022 looks to be a prosperous 12 months.

A string of companies have made auspicious starts to the year including chip brands AMD and Intel as well as lithography maker ASML.

Lockdowns in China haven't eased the production pressure on actual chip producers, with Texas Instruments and ST Microelectronics talking of lost sales recently. Meeting demand will be a challenge.

Gartner thinks the chip shortages have peaked but with semiconductor lead time stretched to 26.6 weeks in March, some will disagree. ®


Other stories you might like

  • Lonestar plans to put datacenters in the Moon's lava tubes
    How? Founder tells The Register 'Robots… lots of robots'

    Imagine a future where racks of computer servers hum quietly in darkness below the surface of the Moon.

    Here is where some of the most important data is stored, to be left untouched for as long as can be. The idea sounds like something from science-fiction, but one startup that recently emerged from stealth is trying to turn it into a reality. Lonestar Data Holdings has a unique mission unlike any other cloud provider: to build datacenters on the Moon backing up the world's data.

    "It's inconceivable to me that we are keeping our most precious assets, our knowledge and our data, on Earth, where we're setting off bombs and burning things," Christopher Stott, founder and CEO of Lonestar, told The Register. "We need to put our assets in place off our planet, where we can keep it safe."

    Continue reading
  • Conti: Russian-backed rulers of Costa Rican hacktocracy?
    Also, Chinese IT admin jailed for deleting database, and the NSA promises no more backdoors

    In brief The notorious Russian-aligned Conti ransomware gang has upped the ante in its attack against Costa Rica, threatening to overthrow the government if it doesn't pay a $20 million ransom. 

    Costa Rican president Rodrigo Chaves said that the country is effectively at war with the gang, who in April infiltrated the government's computer systems, gaining a foothold in 27 agencies at various government levels. The US State Department has offered a $15 million reward leading to the capture of Conti's leaders, who it said have made more than $150 million from 1,000+ victims.

    Conti claimed this week that it has insiders in the Costa Rican government, the AP reported, warning that "We are determined to overthrow the government by means of a cyber attack, we have already shown you all the strength and power, you have introduced an emergency." 

    Continue reading
  • China-linked Twisted Panda caught spying on Russian defense R&D
    Because Beijing isn't above covert ops to accomplish its five-year goals

    Chinese cyberspies targeted two Russian defense institutes and possibly another research facility in Belarus, according to Check Point Research.

    The new campaign, dubbed Twisted Panda, is part of a larger, state-sponsored espionage operation that has been ongoing for several months, if not nearly a year, according to the security shop.

    In a technical analysis, the researchers detail the various malicious stages and payloads of the campaign that used sanctions-related phishing emails to attack Russian entities, which are part of the state-owned defense conglomerate Rostec Corporation.

    Continue reading
  • FTC signals crackdown on ed-tech harvesting kid's data
    Trade watchdog, and President, reminds that COPPA can ban ya

    The US Federal Trade Commission on Thursday said it intends to take action against educational technology companies that unlawfully collect data from children using online educational services.

    In a policy statement, the agency said, "Children should not have to needlessly hand over their data and forfeit their privacy in order to do their schoolwork or participate in remote learning, especially given the wide and increasing adoption of ed tech tools."

    The agency says it will scrutinize educational service providers to ensure that they are meeting their legal obligations under COPPA, the Children's Online Privacy Protection Act.

    Continue reading
  • Mysterious firm seeks to buy majority stake in Arm China
    Chinese joint venture's ousted CEO tries to hang on - who will get control?

    The saga surrounding Arm's joint venture in China just took another intriguing turn: a mysterious firm named Lotcap Group claims it has signed a letter of intent to buy a 51 percent stake in Arm China from existing investors in the country.

    In a Chinese-language press release posted Wednesday, Lotcap said it has formed a subsidiary, Lotcap Fund, to buy a majority stake in the joint venture. However, reporting by one newspaper suggested that the investment firm still needs the approval of one significant investor to gain 51 percent control of Arm China.

    The development comes a couple of weeks after Arm China said that its former CEO, Allen Wu, was refusing once again to step down from his position, despite the company's board voting in late April to replace Wu with two co-chief executives. SoftBank Group, which owns 49 percent of the Chinese venture, has been trying to unentangle Arm China from Wu as the Japanese tech investment giant plans for an initial public offering of the British parent company.

    Continue reading
  • SmartNICs power the cloud, are enterprise datacenters next?
    High pricing, lack of software make smartNICs a tough sell, despite offload potential

    SmartNICs have the potential to accelerate enterprise workloads, but don't expect to see them bring hyperscale-class efficiency to most datacenters anytime soon, ZK Research's Zeus Kerravala told The Register.

    SmartNICs are widely deployed in cloud and hyperscale datacenters as a means to offload input/output (I/O) intensive network, security, and storage operations from the CPU, freeing it up to run revenue generating tenant workloads. Some more advanced chips even offload the hypervisor to further separate the infrastructure management layer from the rest of the server.

    Despite relative success in the cloud and a flurry of innovation from the still-limited vendor SmartNIC ecosystem, including Mellanox (Nvidia), Intel, Marvell, and Xilinx (AMD), Kerravala argues that the use cases for enterprise datacenters are unlikely to resemble those of the major hyperscalers, at least in the near term.

    Continue reading

Biting the hand that feeds IT © 1998–2022