Infineon Shines

All That and a Bag of Chips

Source: Oliver Killig
Infineon may be eyeing future investments.
  • Why it matters

    Why it matters

    While other chipmakers struggle to keep their edge in the competitive semiconductor market, Infineon delivers solid returns to investors and is looking to expand.

  • Facts


    • Munich-based Infineon is Germany’s largest chipmaker, producing semiconductors used in cars, computers, cell phones and other electronics.
    • Less than a year after buying up U.S. competitor International Rectifier, Infineon says the company has earmarked up to €2 billion, or $2.1 billion, for future acquisitions.
    • Infineon posted nearly €5.8 billion in revenue for the 2015 fiscal year.
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Thursday was a good day for Infineon boss Reinhard Ploss.

In the morning, the chief executive of the Munich-based semiconductor giant announced fourth-quarter results that beat even the most optimistic forecasts. By the afternoon, Infineon shares had jumped 15 percent to top €13, or $13.80, on Germany’s blue-chip DAX stock index. The chipmaker’s stock was suddenly trading at its highest level in over a decade.

Mr. Ploss has overseen a year of big changes at the company. In early 2015, Infineon spent $3 billion to acquire its California-based competitor International Rectifier, resulting in additional annual revenue of about €900 million.

That buy-up boosted the chipmaker’s fourth-quarter revenue by more than a third, to €1.6 billion. Revenue for the fiscal year ending September 30 also rose by more than a third, to nearly €5.8 billion.

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