The chip company benefits from the boom in electric cars

Munich Chip maker Infineon anticipates a long-term boom in the business critical to electric mobility. “With some customers, we are now planning volumes two years in advance and more,” said Head of Automotive Peter Schaefer, Handelsblatt.

This is good news for investors: they can expect generous profit margins. Because in the past, the Dax group usually had to struggle with excess capacity and associated high vacancy costs. Or there were too few machines available and the Munich company lost sales – as it has in the past two years.

In light of the ongoing and massive delivery bottlenecks, customers are now ready to offer long-term purchase guarantees. This is very beneficial for Infineon, as Peter Wawer, head of the industrial division, explained in an interview with Handelsblatt: “It takes a long time to increase the capacities. At the same time, the lead times for the equipment are also very long.”