|Bid||15.14 x 427900|
|Ask||15.17 x 8100|
|Day's Range||15.06 - 15.75|
|52 Week Range||13.42 - 22.46|
|Beta (3Y Monthly)||1.33|
|PE Ratio (TTM)||20.22|
|Earnings Date||Nov 12, 2019|
|Forward Dividend & Yield||0.27 (1.73%)|
|1y Target Est||23.20|
Could Infineon Technologies AG (ETR:IFX) be an attractive dividend share to own for the long haul? Investors are often...
(Bloomberg) -- Semiconductor companies are wincing as consumers around the globe are buying fewer cars amid continuing trade tensions between the U.S. and China.China has been a pain point for the sector as the two countries continue to spar on trade, and chipmakers had braced for slumping demand in the country to dent performance. The automotive sector has emerged as one of the biggest sources of weakness and is now threatening to dampen the chances of a recovery in the latter half of the year.It has so far been an unfortunate year for automakers, as global sales shrank 6.5% from a year earlier in the first quarter of 2019, and 7% in the next three months, according to Bloomberg Intelligence. China led the decline with car sales in the country falling for 12 consecutive months through June, amid slowing economic growth, trade-related turmoil, and a weak consumer demand, exacerbated by newer and stricter emissions rules. With the U.S. and China ratcheting the turmoil up a notch this week, some say the risks of tariffs on auto imports is now higher.Many auto parts suppliers, as well as Ford Motor Co., have reported disappointing results and issued weak forecasts for the year, citing the China slowdown. And now the effect is rippling through the rest of the supply chain, hurting chipmakers and other industrial manufacturers.“China weakness was expected, but in all honesty, we were expecting a trade deal by now,” Piper Jaffray & Co. analyst Harsh Kumar said in an interview. Kumar, who covers semiconductor stocks, said the companies supplying the automotive market were still seeing growth in radar and electrification-related products, while the traditional, gas engine segment is getting hit hard.Most of the automotive chip manufacturers have a larger piece of their business associated with traditional auto, and “that is not doing so well because there isn’t any market share or penetration to be gained; it is simply a units game,” Kumar said, referring to the fewer number of cars being sold.Maxim Integrated Products Inc., which makes chips that are used in various parts of a car including lighting, infotainment and driver assistance systems, said it expected the calendar third quarter to be slow, due to a “soft environment” for automotive production. The company’s battery management systems used in electric vehicles will also have fewer shipments, given the market uncertainty in China, the company said.The concerns were echoed by NXP Semiconductors NV, which makes components that help a car to sense its environment and process that data. Maxim and NXP’s customers include auto suppliers such as Aptiv Plc, Lear Corp. and Visteon Corp. as well as Fiat Chrysler Automobiles NV. Other chipmakers with substantial auto market exposure include Infineon Technologies AG, Analog Devices Inc., Texas Instruments Inc., and Microchip Technology Inc.Meanwhile, Rockwell Automation Inc., which counts both automotive and semiconductor sectors among its customers, saw both markets decline in the quarter ending June 30.“Overall, the combination of production cuts and reductions in component inventory is having an significant impact,” Morgan Stanley’s Craig Hettenbach, who covers semiconductors, said in an email interview. The analyst said that while the weakness is most pronounced in China, Europe has also been below expectations from the beginning of the year. “There is a lot of focus on when China will provide incentives to stimulate demand, but company and investor expectations for stimulus are pretty low right now,” Hettenbach said.A respite is not expected anytime soon. According to Moody’s, global vehicle sales are expected to fall 3.8% in 2019, amid further weakening demand in China and Western Europe. The latest round of trade war-related tarriffs could make matters even worse.To contact the reporter on this story: Esha Dey in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jennifer Bissell-Linsk, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European shares sank to a two-month low on Monday as a global sell-off spurred by trade tensions deepened, sending China's yuan to its lowest in more than a decade and sinking trade-sensitive mining, luxury and technology stocks. The pan-European STOXX 600 index fell 2.3%, which, taking into account Friday's losses, made for the biggest two-day drop in more than three years as traders dumped shares in favour of perceived safe-havens like government bonds. The yuan's move on Monday was viewed as a clear sign China would not back down in the face of President Trump's threat of new tariffs on imports, meaning the trade conflict may get worse.
(Bloomberg Opinion) -- Smartphone sales may be stagnating, but one particular strand of technological wizardry behind them is not. Companies that make the sensors powering your phone’s camera and facial recognition system are preparing for a mini boom.The slowdown in global smartphone sales has made life tougher for semiconductor makers. Chips giants from Qualcomm Inc. to Samsung Electronics Co. Ltd. have all recently issued disappointing forecasts. Pricing for memory chips is close to an all-time low.One bright spot is the market for 3-D and camera sensors. Smartphone makers are either struggling to find major new innovations, or are holding them back for handsets that are 5G-enabled and can transmit heaps of data very quickly. Meantime, the likes of Apple Inc. and Huawei Technologies Co. Ltd are pushing more incremental design improvements: Bigger displays and better cameras. The displays often require more sensors too, as fingerprint scanners make way for optical sensing systems.That’s good news for the likes of Sony Corp., Infineon Technologies AG, STMicroelectronics NV and AMS AG. All have intimated that the technology is finally gaining some traction, two years after the iPhone X first brought 3-D sensors to a mass market smartphone with Face ID.Both Sony’s and ST Micro’s sensor arms were their fastest growing business in the most recent quarter as they ramped up production for the arrival of new smartphones in the third quarter. AMS bucked the trend of recent years to forecast growth for the rest of the year that exceeds expectations.This new upswell has as much to do with photography as facial recognition. Even as handset sales drop, more advanced and therefore higher margin image sensors are going into the handsets that are still sold.Huawei and Apple have made photography a selling point. The Chinese firm’s P30 Pro is marketed with the tagline “Rewrite the Rules of Photography” and comprises five different cameras, including a front-facing one.That’s boosted demand for both image sensors and 3-D sensors, which are used to improve the focus and depth perception on the back-facing cameras, as well as for facial recognition on the front. Apple’s next top-of-the-range iPhone will include three rear-facing cameras when released later this year, Bloomberg News has reported.Alphabet Inc.’s Google will also release an updated Pixel smartphone that comprises an innovative 3-D motion sensor array that lets users control the handset without touching the screen. Much of the underlying hardware will be supplied by Infineon.It’s a promise that is overdue. AMS had anticipated a far faster return on its significant investment in the technology. It mistimed its spending and the stock has suffered as a consequence. Infineon, Sony and STMicro have invested in a steadier fashion and benefit from the deep pockets that their other businesses afford them.One reason for the recent uptick in adoption is the arrival of a new class of “time-of-flight” sensors. The iPhone’s Face ID relies on a more complex system known as “structured light.” Not only have Apple’s supplier exclusivity agreements made it harder for rivals to imitate its approach, but the technology’s complexity makes it trickier and more expensive to implement.Time-of-flight gear works the way it sounds, by measuring how long it takes for a laser signal to bounce off an object and inferring its topography accordingly. It requires fewer components and is generally more robust, reducing the risk of breakage and therefore wastage in the manufacturing process.STMicro has a close working relationship with Apple, so may benefit most from the next iPhone. Sony works with the Cupertino, California-based firm too, but has also benefited from the rise of Huawei’s smartphone business. Google’s smartphone business remains small, limiting the upside for Infineon, but its handsets become design standards for others that run on the search giant’s Android operating system. That positions Infineon well for further design wins.Usually, new technology gets industrial applications before filtering down to consumers. When it comes to 3-D sensors, it’s the reverse. Companies such as STMicro and Infineon are building relationships with suppliers that will continue when the sensors go into factories in a few years’ time. Yet more devices will go into cars, monitoring driver behavior and attention. Things are looking up.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Stephanie Baker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
German chipmaker Infineon expects to meet its lowered guidance for the year to Sept. 30, it said on Thursday after posting third-quarter sales and profit in line with market expectations. Munich-based Infineon, which in June agreed to buy Silicon Valley-based Cypress Semiconductor for $10 billion, confirmed the deal was on track to close either towards the end of this calendar year or in early 2020. "Regardless of the ongoing unfavourable macroeconomic conditions, we still expect to achieve our targets for the current fiscal year," said CEO Reinhard Ploss.
When Infineon Technologies AG (ETR:IFX) released its most recent earnings update (31 March 2019), I compared it...
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Infineon Technologies IFNNY / IFX is a leading broad-based European chipmaker with nice exposure to secular growth drivers in the industrial and automotive chip sectors. Looking at the automotive chip market, vehicles with advanced powertrain technology and safety systems require a variety of sensors and power management chips supplied by companies like Infineon. Similarly, the company's exposure to power management circuits positions it to benefit from trends in the electronics industry toward power conservation, not only in more efficient devices like industrial drives, but also in green energy solutions like solar panels.
EUROPE MARKETS European markets rallied Monday on the perceived lightening of trade skirmishes among the U.S. and China, with tech stocks among the best performers. How did markets perform? The Stoxx 600 (XX:SXXP) rallied to 388.
(Bloomberg) -- European technology stocks reached the highest level since June 2018 after the U.S. and China signaled a truce in the trade dispute, and the U.S. said it would permit some companies to do business with blacklisted Huawei Technologies Co.Chipmakers in Europe have taken a hit since the U.S. blacklisted China's Huawei and scores of its affiliates around the world in May. That decision also exacerbated trade tensions between the U.S. and China, hurting chipmakers since China is a key end market for their components. Two silicon wafer companies, the U.K.’s IQE Plc and Germany’s Siltronic AG, both warned last month about the impact of the ban, and the broader effect of the trade war on the semiconductor sector.The Stoxx 600 Technology sub-index rose as much as 2.5%, the most intraday since April 24, with semiconductor firms leading the charge. AMS AG, STMicroelectronics and Infineon Technologies AG all surged, as did chip equipment makers like ASML Holding NV and ASM International NV.Conversely, telecoms equipment groups Nokia Oyj and Ericsson AB have benefited from the blacklisting of Huawei as it removed a key competitor for contracts to build the next generation of 5G mobile networks. Those two were among the worst performers in a mostly green tech sector on Monday morning.Here’s what analysts are saying:CowenCurtailing restrictions on Huawei “could temporarily improve sentiment” on the semiconductor capital equipment group. Although most of these companies, such as ASML and Applied Materials Inc., don’t sell directly to Huawei, they’ve been affected by recent semiconductor supply chain disruptions, the analysts said.Morgan Stanley“A resumption in trade talks is a step in the right direction, although it will not cure the fundamental problem of weaker demand and excess inventory that continues to plague semis. A resolution on trade could provide an important catalyst to help demand, but as of right now it feels like status quo.”Oddo“The readacross is positive for the smartphone market and the semiconductor market as the U.S. and China converge toward a deal. The halt on additional tariffs should also bring some stability to the semiconductor market.”Liberum“These moves are positive for the entire tech industry, especially semiconductor suppliers. The semiconductor down cycle is currently at its trough” with a new up cycle expected to start from the second half of the year, the analysts said.“The removal of sanctions on Huawei and the holding off of additional tariffs is likely to strengthen the recovery in coming months.’’New Street“First of all, it is worth noting this is not a full lift; tensions will remain. Second, it means China will accelerate the development of alternative supply chains and ecosystems. It means investments will probably accelerate, to the benefit of the semicap equipment industry.’’“On the 5G front, it means things will get back into motion. Huawei will likely lose some market share in Europe, where operators will continue to buy from Huawei but reduce exposure to the vendor, while European players will likely lose ground in China in similar magnitude.’’Baader Helvea“The positive element certainly is Trump’s softened stance on Huawei, which has not been expected ahead of the meeting. This may raise hopes that a technology war can be averted. However, the Huawei issue will probably be part of any trade deal and may only be addressed at a later stage when other stumbling stones have been resolved.’’(Adds analyst comments.)To contact the reporters on this story: Sam Unsted in London at firstname.lastname@example.org;Kasper Viita in London at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Monica Houston-WaeschFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Infineon Technologies AG raised about 1.55 billion euros ($1.74 billion) in a capital increase to help finance its acquisition of Cypress Semiconductor Corp.The German chipmaker, which analysts have said may be paying too much for its U.S. rival, sold about 113 million new shares at 13.70 euros each, the company said Tuesday in a statement. The price was about 4.6% below Monday’s closing price of 14.36 euros and the shares fell as much as 6.6% in early trading in Frankfurt to the lowest in almost three years.Infineon is buying San Jose, California-based Cypress -- a memory-chip maker re-positioning itself as a provider to automobiles and other connected devices -- for an enterprise value of 9 billion euros. The combined entity would have sales that would place it among the top 10 chipmakers globally, according to Citibank.Some analysts have questioned the wisdom of the deal. The price is high and cost and revenue synergies will have to be achieved to make the acquisition financially attractive, Warburg said earlier this month in a note.Infineon Chief Executive Officer Reinhard Ploss has argued that the companies are a “perfect fit” because their complementary products create an avenue for faster growth, benefiting employees and shareholders.S&P Global Ratings has put the company on review for a possible ratings downgrade, citing concerns over financing.To contact the reporter on this story: Stefan Nicola in Berlin at email@example.comTo contact the editors responsible for this story: Rebecca Penty at firstname.lastname@example.org, Iain Rogers, Andrew BlackmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Infineon Technologies raised 1.545 billion euros ($1.74 billion) in an accelerated capital increase to help fund the cost of its planned acquisition of Cypress Semiconductor, it said late on Monday. Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for $10 billion, paying a 46% premium to expand into next-generation autos and Internet technologies. "Infineon said it will equity finance about 30% of the ... deal.
Infineon Technologies said on Monday it was launching an accelerated capital increase to raise 1.5 billion euros ($1.68 billion) towards the cost of its planned acquisition of Cypress Semiconductor. The German chipmaker said in a statement that the offering of new shares, by way of a private placement to institutional investors, would increase its share capital by 10%. Separately, the bookrunner on the deal set price guidance for the placement at 13.66 euros.
Moody's Investors Service ("Moody's") rated NXP B.V.'s ("NXP") new senior unsecured notes ("New Notes") Baa3. NXP plans to use a portion of the net proceeds of the New Notes to refinance at maturity NXP Semiconductors Inc.'s $1.15 billion principal amount of outstanding 2019 Cash Convertible Senior Notes ("Convertible Notes") due December 1, 2019 and $600 million principal amount of outstanding 4.125% Senior Notes due 2020, with remaining proceeds used for general corporate purposes. Given the timing mismatch between the issuance of the New Notes and the refinancing of the Convertible Notes, debt will remain elevated until repayment of the Convertible Notes on December 1st.
In March 2019, Infineon Technologies AG (ETR:IFX) released its earnings update. Generally, analyst consensus outlook...