Infineon CFO Addresses Tariff Estimates and Automotive Outlook
During a recent discussion, Infineon Technologies’ Chief Financial Officer addressed questions concerning the impact of tariffs on the company’s revenue. Last quarter, he provided a rough estimate of a potential 10% dip in revenue due to tariff increases. This time, when asked if he could transition from a tentative guess to a more concrete estimate, he acknowledged the complexity of the situation.
He stated, “As you said last quarter, we were the only ones really going out and saying we do not know it, we do not see it in our order intake and in our numbers. But if the world is increasing tariffs, then there must be some negative impact to growth and to investments.” This sentiment led to the company’s current estimate of a €400 million revenue shortfall this fiscal quarter.
Despite this projection, he emphasized, “Unfortunately, I can only reiterate we don’t see it in our numbers. We do not have very clear evidence. Our customers do not tell us if they push out or pull in.” He acknowledged the automotive sector comprises approximately half of Infineon’s revenue and highlighted potential challenges, particularly in light of a recent 7% decrease in car sales across Europe.
Outlook for the Automotive Sector
When discussing the automotive industry, the CFO provided insights while maintaining some prudence, stating, “I’m sorry, you need to be. Stay tuned for the full fiscal 26 guidance, which we will give in November.” However, he expressed cautious optimism about the automotive sector’s resilience, citing the company’s strong positions in all five major global regions, which offers some diversification.
He noted, “For us, automotive is not so much the car production number, it’s the content per car, it’s the electrification, it’s the software-defined vehicles which play into our favor.” He highlighted continued growth in China and mentioned the rising popularity of hybrids in various markets, indicating mixed dynamics for the sector.
Prospects for Data Centers
The CFO also discussed the flourishing data center market, which he described as a positive development for Infineon. He confirmed that the company anticipates doubling its revenue in this sector to around €600 million this fiscal year and aims to reach €1 billion next year. This growth, he explains, is fueled by collaborations with major hyperscalers and power processor manufacturers.
Additionally, he shared news of a new infrastructure partnership in India aimed at developing a high-voltage DC connection from the grid to servers, further reinforcing Infineon’s strategic position in key markets.
