Chip, Infineon effect for Stm
The German chip company Infineon disappoints analysts' expectations, falls on the stock market and drags the Italian-French Stmicroelectronics with it. All the details
The economic results below expectations of Infineon Technologies, a German semiconductor company, also had negative repercussions on STMicroelectronics . The Italian-German company of electronic components, owned by the Ministry of the Economy, in fact lost more than 2 percent on the Milan stock exchange, one of the worst performances of the entire FTSE MIB index.
INFINEON FAILS ANALISTS' EXPECTATIONS
The decline of Infineon in Frankfurt, more than eleven points less, is due to the confirmation of the objectives for 2023 which disappointed the experts who were rather expecting an upward revision, "particularly on the margins front", explained the analysts of You quote.
The company estimates sales of 4 billion euros in the fourth quarter of the year, against 4.1 billion expected by analysts. The expected operating margin is 25 percent, versus 26 percent expected by experts.
“Overall we view the fourth quarter guidance negatively,” commented Italian investment bank Equita.
HOW THE AUTOMOTIVE AND ELECTRONICS ARE GOING
In the recently concluded quarter, Infineon recorded revenues up 13 percent year on year, to 4.09 billion euros (expectations were 4.05 billion) and a net profit of 831 million, against 517 million in last year. The company spoke of robust demand from the automotive sector – electric and connected vehicles contain many more chips than traditional ones – but low demand from the consumer electronics sector, such as smartphones and PCs.
Infineon has announced an investment of 5 billion euros over five years for the expansion of the factory in Malaysia, intended for the production of car microchips.
THE MIMIT-STMICROELECTRONICS AGREEMENT
On July 14, the Ministry of Enterprise authorized the signing of the "Arrowhead Tools – Arrowhead II" agreement on the development of IT projects for smart cities and energy. The project is led by STMicroelectronics together with Eurotech, Santer Reply, the Polytechnic University of Turin and the national inter-university consortium for nanoelectronics.
The agreement provides for a total investment of 18 million euros; the Ministry of Enterprise will provide 5.8 million and the regions of Lombardy, Friuli-Venezia Giulia, Emilia-Romagna and Sicily a total of 380,000 euros.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/infineon-previsioni-2023/ on Thu, 03 Aug 2023 13:42:52 +0000.