Infineon (1K) | Buy | Sales and margins picking up further

研报英文原文证据摘录

Infineon (1K) | Buy | Sales and margins picking up further

e trends could also improve in the automotive market (given

that prices are largely fixed by yearly contracts this year and Infineon has an opportunity to

renegotiate prices for 2027, depending on market conditions).

While AI momentum keeps strengthening, there are positive spill-over effects toward adjacent

areas, including industrial markets (supported by higher demand for power infrastructure), and

the environment is significantly improving in the non-AI business (spreading over GIP and to a

lower extent to ATV and CSS).

Gradual recovery in ATV, with some upside from FY 2027

Despite adverse market conditions, the automotive (ATV) business gradually recovers with some

upside from FY 2027.

The global car production volumes are now expected to decline by 3% in CY 2026E, and visibility

remains limited due to uncertain macro conditions (with rising interest rates and still elevated

oil prices).

That said, the semis content keeps increasing in the automotive business with the adoption of

software-defined vehicles (SDVs) accelerating, and Infineon remains very well positioned there

with its Aurix MCUs, sensors and Ethernet connectivity following the acquisition of Marvell.

The xEV penetration is currently progressing at a slower pace, with some specific pricing

pressure around high-voltage power components for xEVs (with aggressive pricing attitude from

Chinese vendors on silicon-IGBTs and from western vendors on silicon carbide (SiC)).

Infineon remains strongly committed to protecting margins in the coming quarters and is

deliberately leaving some business to competitors.

The high-voltage component business for xEVs should decline from c. EUR750m sales in FY 2025