Infineon Austria 2024 fiscal year: Innovative strength in a challenging market environment

• Fiscal year in line with economic expectations and program to strengthen competitiveness being implemented as planned
• Investments in research & development ensure innovative strength
• World firsts: Technological year of superlatives
• Infineon enables increasing computing power of AI servers with efficient power semiconductor solutions ("We power AI")
• Delayed cyclical recovery of important end markets leads to expectations of subdued business development in 2025

Villach, 12 December 2024 – Infineon Austria’s view of the 2024 fiscal year is twofold: economically, the year was extremely challenging, but on the innovation side it was outstanding. After two record growth years, weak demand in key markets such as automotive, renewable energy and consumer electronics is reflected in the result. The cyclical upturn is lagging in almost all of these end markets, with the exception of artificial intelligence (AI). Location factors such as high personnel and energy costs are impacting competitiveness on the global market. With a group-wide structural improvement program, Infineon is actively working to sustainably strengthen its competitiveness in the medium term. In line with the market cycle, the company is also increasingly focusing on cost discipline in the short term. At the same time, Infineon is seizing opportunities in challenging times, continuing to invest in innovation and has once again proven its strong position as a pacesetter in power electronics with groundbreaking technological world firsts this year. Infineon is thus very well positioned especially for the growing importance of the AI market. "Digitalization and decarbonization remain the long-term economic drivers of the future, and cyclical market fluctuations will not change that. Even if almost all end markets are currently showing little growth momentum, we are preparing for the upswing with our core competence of innovative strength and full of energy," emphasizes Sabine Herlitschka, CEO of Infineon Technologies Austria AG.

The Infineon Technologies Austria Group (Infineon Austria) closed the 2024 fiscal year (closing date 30 September 2024) in line with expectations in times of continuing economic weakness: The Austrian subsidiary of the German semiconductor group generated revenue of 4.757 billion euros in 2024, which corresponds to a decline of around 15 percent compared to the record year 2023 (FY 2023: EUR 5.604 billion). Earnings before taxes for the past fiscal year amounted to 151.2 million euros (FY 2023: EUR 835.2 million).

Jörg Eisenschmied, CFO of Infineon Technologies Austria AG:

"The semiconductor sector is a cyclical industry. We are familiar with fluctuations in demand and can manage such market cycles with foresight. However, after two record years in a global semiconductor boom, our sales figures for the past fiscal year show a clear cyclical weakness in demand, exacerbated by high inventories. The resulting decline in earnings is primarily due to the reduced production volume combined with high idle capacity costs as well as price effects and rising factor costs. We are currently preparing for a slower course of business and are focusing on cost efficiency and optimizing our structures. At the same time, we are preparing to be able to act quickly when the market and economy pick up."

Despite the challenging market conditions, Infineon Austria continued to invest undiminished 685.5 million euros in research & development in the 2024 fiscal year (FY 2023: EUR 672.2 million). With a research ratio of 14 percent and around 2,500 employees in research & development, Infineon is thus strengthening its leading position as Austria's strongest research company. [1]

In the 2024 fiscal year, Infineon Austria made investments totalling 322.2 million euros (FY 2023: EUR 628.1 million). The majority went into the development and production of technologies that make applications increasingly energy-efficient and therefore more environmentally friendly. Investments were mainly made in infrastructure and production facilities for 300-millimetre power semiconductors based on silicon (Si) and in the new semiconductor materials silicon carbide (SiC) and gallium nitride (GaN).

Focus on competitiveness

The group-wide structural program "Step Up" announced in spring 2024 is being implemented as planned. Measures will also be driven forward at many levels in Austria over the next two fiscal years as part of this program. These relate to the areas of production productivity, portfolio management, price quality and operating cost optimization. The majority, around 75 percent of the measures, relate to efficiency improvements and the associated cost reductions. In addition, personnel-related measures already communicated will be implemented: 380 of the approximately 6,000 positions in Austria will be cut by 2026. To this end, Infineon Austria is using socially responsible measures such as natural fluctuation, partial retirement offers and offers for amicable and voluntary termination of employment contracts or transfer to another location. However, there are no plans for compulsory redundancies.

Responsible personnel policy

These announced personnel measures of the efficiency program are currently running according to plan and are not yet reflected in the headcount for the past fiscal year. The headcount is 5,977 employees (FY 2023: 5,886) from 78 nations. The proportion of academics is 59.7% (FY 2023: 58.1%) and the proportion of women is 22.2% (FY 2023: 22.2%). Despite the current market situation, skilled workers remain an important issue for the future of Infineon, especially in apprentice training. In 2024, the annual number of apprentices doubled to around 40 with the opening of the new Infineon apprentice campus, which is located in the Villach Technology Park. In total, 118 apprentices completed their training at Infineon Austria in 2024. January 2025 will also see the launch of a unique further training model for existing employees in production and maintenance in the form of a shortened electrical engineering apprenticeship. 

Innovative strength demonstrated in 2024 with world firsts

Infineon Austria contributes to the Group's success with the development of cutting-edge technologies and played a leading role in two world market firsts in 2024. Infineon is thus consistently expanding its strengths in all three semiconductor materials silicon, silicon carbide and gallium nitride.

With the world's first 300-millimeter gallium nitride technology for power electronics, Infineon has achieved a milestone in the industry. Chip production on 300-millimeter wafers is technologically more advanced and significantly more efficient than on 200-millimeter wafers, as the larger wafer diameter enables 2.3 times the number of chips per wafer. GaN-based power semiconductors are used in power supplies for AI systems, solar inverters, chargers and adapters as well as motor control systems.

In addition, Infineon's innovative approach has led to the development of ultra-thin silicon power semiconductor wafers that will significantly improve the energy efficiency, power density and reliability of power supply solutions. This success will also strengthen the company's roadmap for AI data centers.

Thomas Reisinger, Board Member for Operations at Infineon Technologies Austria AG: "Infineon was the first company in the world to make the leap to 300-millimeter gallium nitride wafers in our innovation factory in Villach. The second technological breakthrough is also closely linked to the Austrian location: We are now producing the thinnest 300-millimeter silicon wafers in Villach at 20 micrometers. These silicon thin wafers are only a quarter as thick as a human hair and half as thick as the most advanced wafers currently available. They ensure even more efficient energy conversion and result in around 15 percent less power loss. Producing this thin wafer technology automatically and in high volumes is unique in the world. The close cooperation between development and production is a key advantage of Infineon in Austria."

"We power AI"

Artificial intelligence (AI) is probably the most powerful transformative technology of our time. However, behind the power of AI is also a computationally and power-intensive process with a significant carbon footprint. Since 2012, the amount of computing power required to train AI models has doubled every three and a half months. As a result, the power required to operate data centers around the world is increasing significantly. Infineon enables the increasing computing power of AI servers with efficient power semiconductor solutions. Operators of AI data centers benefit in two ways: by optimizing operating costs and by contributing to efforts to limit the carbon footprint of AI data centers despite the rapidly growing energy demand. Infineon in Villach has found technological answers to the question of the energy balance of AI in the combination of the three semiconductor materials silicon, silicon carbide and gallium nitride within a power supply module. With second-generation power semiconductors based on SiC and GaN, the losses in power supply modules can be almost halved. Infineon is thus enabling technological progress in the field of AI, helping to save energy and making an important contribution to achieving global climate targets.

Sustainability through products, processes and behavior

When it comes to a CO ₂-neutral and digital future, Infineon is an active and reliable partner. A total of 7.5 billion chips were produced in Villach in the 2024 fiscal year. With this annual production from Villach, around eleven million tons of CO ₂ will be saved in the applications over their useful life. This corresponds to around half of the traffic emissions (people and goods) in Austria or around 15 percent of Austria's CO ₂ emissions in 2022.

Infineon is constantly breaking new ground in terms of sustainability, not only with its products but also in its processes: Infineon has been listed in the Dow Jones Sustainability Index for 14 years, making it one of the top groups of the world's most sustainable companies. The Infineon Group's goal is to achieve CO ₂ neutrality in direct and indirect emissions by 2030. Since 2019, Infineon has more than halved its emissions while doubling its revenue. By participating in the science-based targets initiative and thus committing to a science-based climate target, Infineon is expanding its climate strategy and also involving suppliers in its efforts to become more sustainable. In addition, Infineon provides its customers and partners with detailed product carbon footprint data to help them make informed decisions and achieve their sustainability goals. Furthermore, Infineon in Austria optimizes its energy and resource consumption using intelligent technologies and artificial intelligence, the increased digital networking of systems and processes, the use of waste heat from production, the use of PV systems, e-charging stations and IT upcycling. In November 2024, Infineon Austria received an award from the Federal Ministry for Climate Protection for the best measure in the field of energy, environmental and climate protection. The prize was awarded to a project that reduces energy use and resource consumption through digital networking and intelligent system control.

[1] "trend" TOP 500 ranking 2024, 1st place for Infineon Austria in research & development, June 2024

Key Figures Fiscal Year 2024 (as of 30 September 2024) 

 ² Investments excluding financial assets

Foto-Download Fiscal Year Press Conference 2024: APA Picturedesk .   

©Infineon Austria/APA Fotoservice/Hörmandinger

Infineon Technologies Austria AG is a subsidiary of Infineon Technologies AG, a global semiconductor leader in power systems and IoT. Semiconductors are essential for mastering the energy-related challenges of our time and helping to shape the digital transformation. Infineon's microelectronics drive decarbonization and digitalization and enable groundbreaking solutions for green and efficient energy, clean and safe mobility as well as a smart and secure IoT.

Infineon Austria pools competencies for research and development, production as well as global business responsibility. The head office is in Villach, with further branches in Graz, Klagenfurt, Linz, Innsbruck and Vienna. With 5,977 employees (including around 2,500 in research and development) from 78 nations, the company generated revenue of EUR 4.8 billion in the 2024 fiscal year (ending 30 September). With research expenditure of 686 million euros, Infineon Austria is the strongest research company in Austria.

Further information at www.infineon.com/austria