Construction of the Infineon factory in Dresden on schedule

Infineon suffers from the weak dollar / Photo: Karl-Josef Hildenbrand/dpa

Semiconductor manufacturer Infineon is building a new factory in Dresden and plans to create around 1,000 new jobs. However, expected customs duties and the strong weakening of the dollar are weighing on the company.

The construction of Infineon's chip factory in Dresden is on schedule, according to the company. The shell construction is almost complete, the semiconductor manufacturer announced. The final confirmation of funding from the Federal Ministry of Economics has now also been received. Production in the "Smart Fab" is set to start as early as next year.

The total funding reportedly amounts to around one billion euros. The company itself is investing five billion euros, it said. This will create up to 1,000 new jobs in the new factory itself and many more in the surrounding area. According to the company, the expansion of chip production is a response to the demand for semiconductors in the renewable energy, data center and e-mobility sectors.

Significantly lower profit than a year ago

In the second quarter of the financial year - i.e. from January to March - Infineon's profit amounted to 232 million euros. This is 41 percent less than in the same period last year and also a slight decline compared to the previous quarter. Sales were robust at 3.6 billion euros and fell only minimally compared to the same period last year. There was even a slight increase compared to the previous quarter.

In view of expected customs duties and the strong weakening of the dollar in recent months, the semiconductor company from Neubiberg near Munich has lowered its expectations for the current year. Group CEO Jochen Hanebeck now anticipates a slight decline in sales and a lower margin and intends to invest less. He had only raised his expectations for turnover in February - because the dollar was valued significantly higher at the time than it currently is.

Construction of the Infineon factory in Dresden on schedule

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Significantly lower profit than a year ago

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