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Infineon Technologies AG: SWOT Analysis & Company Profile by BusinessReview

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Business Review’s Infineon Technologies AG contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

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									Infineon Technologies AG

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Infineon Technologies AG: SWOT Analysis
& Company Profile


Reference code: BRTC100CP10-Q4

Published: Dec 2010




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Infineon Technologies AG - SWOT Profile                                             Page 1
Infineon Technologies AG

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Infineon Technologies AG - Company Overview

Infineon Technologies AG (Infineon) is engaged in designing, developing, manufacturing, and marketing semiconductors
and its related solutions. The company’s product portfolio comprises standard commodity components, semi-custom
devices, full-custom devices, and specific components for analog, digital, and mixed-signal applications. Infineon also
provides memory chips and security microcontroller chips for payment cards, identification documents, pay TV, prepaid
telecom cards, and transportation cards. Its products find applications in various markets such as automotive, industrial
and multimarket, and chip cards and security, among others. The company operates through its subsidiaries located in
the US, Europe, and the Asia-Pacific regions. Infineon is headquartered in Neubiberg, Germany.


Financial Performance

The company reported revenue of EUR 3,295 million during the fiscal year ended September 30, 2010 (fiscal 2010). The
company's revenue declined at a compounded rate of 8.12% during the period 2008-2010 with an annual growth of
50.87% over fiscal year 2009. During the fiscal year 2010, its operating margin was 10.56% as against the operating
margin of -8.38% in fiscal year 2009. During the fiscal year 2010, the company registered a net margin of 20% as against
the net margin of -28.66% in the fiscal year 2009.




Infineon Technologies AG - Key Facts

Infineon Technologies AG, Key Facts

                                  Am Campeon 1-12, Neubiberg, ,
                                                                    Ticker Symbol, Stock
Corporate Address:                                                                             IFXA (XETRA)
                                  85579, Germany                    Exchange



Telephone                         + 49 89 23465555                  No. of Employees           26,654



Fax                               + 49 89 2349552987                Financial Year End         September



URL                               www.infineon.com                  Revenue (in EUR Million)   3,295.00


                                  Technology and
Industry                                                            Revenue (in USD Million)   4,576.39
                                  Communications


Locations                         Germany

Source: Annual Report, Company Website, Primary and Secondary Research




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Infineon Technologies AG - SWOT Profile                                                                         Page 2
Infineon Technologies AG

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Infineon Technologies AG - Business Description

Infineon Technologies AG (Infineon) is a manufacturer of semiconductors and related solutions, which are used in various
microelectronic applications. The product portfolio of the company includes semi-custom devices, full-custom devices, and
application-specific components for analog, memory, digital, and mixed-signal applications. As of September 30, 2010,
the company employed 26,654 people.

The company has classified its business operations under four segments, namely, Automotive, Industrial and Multimarket,
Chip Card and Security, and Wireless Solutions.

Under Automotive segment, the company is engaged in designing, manufacturing, and selling of semiconductors for use
in automotive applications. Principal products offered under the segment include power semiconductors, sensors and
microcontrollers, integrated circuits (ICs) and modules, and silicon discrete. These products are used by automotive
companies in power train, engine control, transmission control, ABS, airbag, stability control, and memory modules. The
segment’s major customers include Bosch, Continental, Arrow, and Avnet. During the fiscal year 2010, the Automotive
segment generated 28.7% of its total revenues.

Through Industrial and Multimarket segment, Infineon engages in designing, manufacturing, and selling semiconductors
and complete system solutions for use in industrial applications. Some of the products offered by the segment include
power semiconductors, such as modules, discretes and ICs, silicon discretes, ASIC (application-specific integrated circuit)
solutions including secure ASICs. These products are used in industrial drives, traction, power distribution, power
management and supply, lighting, industrial control, renewable energy, RF (radio frequency) and protection devices for
multimarket applications, such as game consoles, hearing aids, and computer peripherals. Its major customers are,
Beijing Jingchuan Electronic Tech, Delta, Avnet, and Siemens. During the fiscal year 2010, the Industrial and Multimarket
segment contributed 31% towards its total revenues.

Through the Chip Card and Security segment, Infineon is engaged in offering semiconductors and related complete
system solutions for use in security applications and chip cards. These products are principally used in security
microcontroller ICs and security memory ICs for payment cards, access and transportation cards, SIM (subscriber
identification module) cards, identification documents, prepaid telecom cards, Pay TV and platform security products for
networks, such as trusted platform modules, and RFID (radio-frequency identification) ICs for object identification. The
segment’s major customers include Oberthur Card Systems, Gemalto, Giesecke & Devrient, and the US government
printing office. During the fiscal year 2010, the Chip Card and Security segment generated 9.3% of the company's total
revenues.

Through the Wireless Solutions segment, the company was engaged in design, manufacture, and sale of Integrated
Circuits (ICs) and other semiconductors for wireless communication applications. Infineon sold its mobile phone business
of Wireless Solutions segment to Intel Corporation in August 2010. As a result, the company’s remaining business
segments are organized under three segments, namely, Automotive, Industrial and Multimarket, and Chip Card and
Security. During the fiscal year 2010, the Wireless Solutions segment contributed 31% towards the total revenues of the
company. On August 2010, the company discontinued its Wireless Mobile Phone business.

Infineon’s research and development (R&D) activities focus on the development of new products and enhancement of
existing products. In fiscal 2010, the company’s Research and Development expenses totaled EUR 399 million,
representing 12.1% of total sales.

Recently, the company entered into a contract with the German authorities to supply security controllers of the SLE 78
product family. Infineon also divested its joint venture with IBM, Altis Semiconductor. It also entered into a license
agreement with Xinjiang Goldwind Science and Technology Co., Ltd. for production of core components required in wind
turbines. In addition, the company sold its Wireless Mobile Phone business to Intel Corporation.




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Infineon Technologies AG - SWOT Profile                                                                           Page 3
Infineon Technologies AG

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Infineon Technologies AG - Major Products and Services

Infineon Technologies AG (Infineon) designs, develops, manufactures and markets semicondu
								
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