Worsening cold winter in the European and American car market, Infineon cuts its guidance for the 2025 fiscal year.

Infineon expects a decline in revenue for the 2025 fiscal year, which is anticipated to be lower than analyst expectations, indicating that demand from European and American automotive customers will continue to be weak. Additionally, the company's performance in the fourth quarter of the 2024 fiscal year also fell short of expectations. The financial report shows that Infineon's quarterly revenue for the quarter ending in September decreased by 6% compared to the same period last year to 3.92 billion euros, below the analyst average expectation of 3.98 billion euros. The divisional profit margin was 21.2%, compared to 25.2% in the same period last year. The company stated that it expects revenue for the 2025 fiscal year ending in September of next year to "slightly decline" compared to the same period last year, with revenue for the 2024 fiscal year at 14.96 billion euros. Infineon is the first major European semiconductor manufacturer to provide revenue guidance for 2025, with sales from the automotive industry accounting for more than half of the company's revenue. While the demand for chips driving artificial intelligence is growing, other sectors of the semiconductor industry are struggling, including chip manufacturers that rely on the automotive industry. The company warned that after an 8% decline in revenue to 14.96 billion euros in the 2023-24 fiscal year, revenue will see a slight decline again this fiscal year. In August of this year, Infineon narrowed its annual revenue guidance target to around 15 billion euros, which had been revised down twice before. In a statement, Infineon said that the divisional profit margin for 2024-2025 is expected to decrease from 20.8% to between 15% and slightly below 20%. Infineon stated that revenue for this quarter (first quarter of the 2025 fiscal year) is approximately 3.2 billion euros, with a divisional profit margin of around 15%. Analysts' average expectation for this quarter is 3.8 billion euros. The company plans to invest around 2.5 billion euros in 2025, with a focus on its Dresden factory in Germany for intelligent power technologies for applications such as powering AI. Chief Financial Officer Sven Schneider said in an interview: "Compared to last year, our investment has decreased by 10%. We are focusing on strategic decisions, such as our Dresden module 4." European automakers are struggling to compete with Chinese models, and the electric vehicle market has also impacted competitors such as STMicroelectronics and NXP Semiconductors. Due to continued weak demand, the industry also faces the problem of excess chip inventory. Meanwhile, China is increasing its own semiconductor production, with the European Commission warning that semiconductor manufacturers on the European continent risk losing market share in the more mature semiconductor market.