Chipmaker Infineon is significantly gloomier over the rest of its broken fiscal year. The car industry is an important market for the German group, which is severely affected by the corona crisis.
For the full fiscal year, Infineon now expects a 5 percent drop in sales if the recent acquisition of Cypress is not included. Initially, the company aimed at an increase in revenue of 5 percent.
The corona virus forced many car manufacturers to close factories and sales of new cars plummeted in many regions. As a result, they have less money in cash for investments in the chips for electric motors that Infineon is developing.
In the past quarter of Infineon, annual sales remained virtually unchanged at just under 2 billion euros. Compared to the last three months of 2019, revenues increased by 4 percent. The company had 178 million euros under the line. That is 23 percent less than a year earlier.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.
