[Chipformation] Infineon, the No.1 in Automotive Semiconductors

Infineon Technologies, the world's number one automotive semiconductor company based in Germany, is considered one of the top three global automotive semiconductor companies alongside the Netherlands' NXP and Switzerland's STMicroelectronics. Last year, it secured the top position with a 12.4% market share in the $59.4 billion global automotive semiconductor market. Infineon's automotive semiconductors are used in most major global car brands, including Germany's Volkswagen and BMW Mini, France's Renault, the United States' GM Cadillac, Japan's Nissan, and South Korea's Hyundai and Genesis.

Infineon's world number one title is not limited to automotive semiconductors. It also holds a dominant first place in the power semiconductor sector. Its market share in power semiconductors (discrete and modules) stands at 19.7%, which is higher than the combined shares of the second to fourth largest companies: the United States' ON Semiconductor (7.5%), Switzerland's STMicroelectronics (6.6%), and Japan's Mitsubishi (5.2%). Since power semiconductors play a role in controlling electricity and are key components in electric vehicles, Infineon is positioned to create synergy as the future automotive market increasingly shifts toward electric vehicles, maintaining its leadership in both power and automotive semiconductors.

Despite the semiconductor industry's downturn, Infineon continues to achieve strong growth. For the fiscal year 2022, Infineon recorded sales of 14.218 billion euros, growing approximately 30% compared to the previous year. In the second quarter of fiscal year 2023 (January to March 2023), sales reached 4.119 billion euros, nearly a 30% increase from 3.298 billion euros a year earlier.

As a driver of next-generation industries, Infineon is recognized within Germany as a company that aggressively invests in research and development (R&D). In fiscal year 2022, it invested 1.8 billion euros in R&D, accounting for 13% of its sales. The company holds 31,250 patents and registered approximately 1,750 new patents last year alone.

Infineon's roots trace back to Siemens. It was established in 1999 when Siemens' semiconductor division became independent. Initially, it was a comprehensive semiconductor company handling both memory and non-memory products, but now it focuses its capabilities on system semiconductors, which are part of the non-memory sector. The memory business accounts for only 5%, insulating it from the volatile semiconductor market cycles.

Meanwhile, Infineon continues to strengthen its ties with South Korea. Among Infineon's top 10 customers by sales are Samsung Electronics and Hyundai Motor Company.