Q4 2025 Infineon Technologies AG Earnings Call - Press Conference

November 12, 2025

Jochen Hanebeck: Journalistinnen, die uns über den Stream verfolgen, sind selbstverständlich eingeladen, schriftlich ihre Fragen zu stellen. Das Fragetool finden Sie neben dem Screen eingeblendet. Wenn Sie eine Frage stellen, geben Sie bitte Ihren Namen an und nennen Sie auch Ihre Redaktion. Das hilft uns dann, bei der Zuweisung der Frage. Die Gäste hier im Studio können ihre Fragen direkt oral hier zum Besten. Die Leute hier in diesem Studio können über eines der Mikrofone direkt Fragen stellen. Sehr geehrte Medienvertreterinnen und Medienvertreter, liebe Zuschauerinnen und Zuschauer, herzlich willkommen zu unserer Jahrespressekonferenz. Infineon ist hier vor Ort in diesem Videostudio und im Livestream. Wir freuen uns über Ihr Interesse. Infineon hat die Erwartungen im Geschäftsjahr 2025 erfüllt. Auch auf herausfordernden gesamtwirtschaftlichen und geopolitischen Bedingungen. Das Jahr war geprägt von einer nachlassenden Nachfrage der Mehrheit unserer Zielmärkte. Endkunden und Distributionspartner haben ihre Lagerbestände großflächig abgebaut.

Jochen Hanebeck: [Foreign language]

Speaker #1: Die for stream uns über den journalists who are all following us live stream . welcome You are to written questions . The question tool be shown on your display in the will .

Jochen Hanebeck: Unsere Kunden sind aufgrund der geopolitischen Instabilität und der anhaltenden Turbulenzen bei den Zöllen vorsichtig bei der künftigen Entwicklung der Nachfrage. Dies hat zu einem letzten Minute Bestellverhalten für Halbleiter geführt. Darüber hinaus haben ungünstige Währungseffekte unser Umsatzwachstum jetzt schon über mehrere Quartale gedämpft. Given the ongoing geopolitical and tariff-related uncertainties, it is difficult to predict how strong and how broad the upturn in the semiconductor markets will be in the 2026 fiscal year. Therefore, we are adopting a prudent outlook. Our priorities at Infineon remain unchanged. Firstly, we are leveraging existing opportunities for profitable growth and are expanding our production capacities in a very targeted manner to this end. Secondly, we are making focused and forward-looking investments in future technologies and in our expertise. Thirdly, we are keeping our expenditures under control. We remain confident on our medium- to long-term development.

On site in our video studio and on our live stream, we are glad you could join us in the 2025 best school year despite challenging macroeconomic and geopolitical conditions. The year was characterized by prolonged weakness in the majority of our target markets and customers and distribution partners that significantly reduced their inventory levels, geopolitical instability, and the ongoing turbulence of tariffs. Our customers are cautious about the future development of demand.

This has led to last-minute ordering behavior for semiconductors.

[Translator 1]: Given the ongoing geopolitical and tariff-related uncertainties, it is difficult to predict how strong and how broad the upturn in the semiconductor markets will be in the 2026 fiscal year. Therefore, we are adopting a prudent outlook. Our priorities at Infineon remain unchanged. Firstly, we are leveraging existing opportunities for profitable growth and are expanding our production capacities in a very targeted manner to this end. Secondly, we are making focused and forward-looking investments in future technologies and in our expertise. Thirdly, we are keeping our expenditures under control. We remain confident on our medium- to long-term development.

In addition, unfavorable currency effects have slowed our revenue growth for several quarters. Now,

Given the ongoing geopolitical and tariff-related uncertainties, it is difficult to predict how strong and how broad the upturn in the semiconductor markets will be in the fiscal year 2026.

Therefore, we are adopting a prudent outlook.

Our priorities at Infineon remain unchanged.

Firstly, we are leveraging existing opportunities for profitable growth and are expanding our production capacities in a very targeted manner to this end. Secondly, we are making focused and forward-looking investments in future technologies. And thirdly, we are keeping our expenditures under control.

Jochen Hanebeck: We are making good progress on improving our cost competitiveness. At the same time, we are accelerating innovations with clear customer benefits and strengthening our position in growth markets such as software-defined vehicles and AI data centers. I'll come back to this. Infineon is well positioned for a coming market upswing. Before we look ahead, let us first take a brief look at our business development in the past fiscal year. In Q4, group revenue increased to EUR 3,943 million. This is an increase of 6% compared to the previous quarter, despite a stronger headwind due to the weaker US dollar. The exchange rate rose from 1.14 to 1.17 US dollars per euro.

[Translator 1]: We are making good progress on improving our cost competitiveness. At the same time, we are accelerating innovations with clear customer benefits and strengthening our position in growth markets such as software-defined vehicles and AI data centers. I'll come back to this. Infineon is well positioned for a coming market upswing. Before we look ahead, let us first take a brief look at our business development in the past fiscal year. In Q4, group revenue increased to EUR 3,943 million. This is an increase of 6% compared to the previous quarter, despite a stronger headwind due to the weaker US dollar. The exchange rate rose from 1.14 to 1.17 US dollars per euro.

We remain confident in our medium- to long-term development. We are making good progress in improving our cost competitiveness.

At the same time, we are accelerating innovations with clear customer benefits and strengthening our position in growth markets, such as software-defined vehicles and AI data centers.

I'll come back to this. Envidian is well positioned for a coming market upswing.

Before being a phones before we look ahead, let us first take a brief. Look at our business development in the past fiscal year in the fourth quarter in the fourth quarter group Revenue in Greece to 3 billion 9 943 million euros. This is an increase of 6% compared to the previous quarter, despite a stronger head with due to the weaker US dollar.

Jochen Hanebeck: As expected, Q4 was the strongest in the 2025 fiscal year in terms of revenue. We were able to increase the Segment Result to EUR 717 million. This Segment Result Margin reached 18.2% compared to 18.0% in the previous quarter. The slight improvement is mainly due to higher sales volume. This enabled us to compensate for the unfavorable currency development. For the 2025 fiscal year, revenue amounts to EUR 14,662 million. This is a decrease of 2% compared to the 2024 fiscal year. The weaker US dollar was an important factor in this development. At constant currencies, our revenue would have remained almost stable compared to the previous year.

[Translator 1]: As expected, Q4 was the strongest in the 2025 fiscal year in terms of revenue. We were able to increase the Segment Result to EUR 717 million. This Segment Result Margin reached 18.2% compared to 18.0% in the previous quarter. The slight improvement is mainly due to higher sales volume. This enabled us to compensate for the unfavorable currency development. For the 2025 fiscal year, revenue amounts to EUR 14,662 million. This is a decrease of 2% compared to the 2024 fiscal year. The weaker US dollar was an important factor in this development. At constant currencies, our revenue would have remained almost stable compared to the previous year.

The exchange rate rose from 1.14 to 1.17 US dollars per Euro, as expected. The fourth quarter was the strongest in the 2025 fiscal year in terms of revenue.

We were able to increase increase the segments results to 717 million euros. This segment result, margin reached 18.2% compared to 18.0% in the previous quarter. This slight Improvement is mainly due to higher sales. Volume, this enabled us to compensate for the unfavorable current development for the 2025 fiscal year Revenue amounts to 14 billion 6662 million euros.

This is a decrease of 2% compared to the 2024 fiscal year. The weaker U.S. dollar was an important factor in this development.

Jochen Hanebeck: This is a respectable result for a fiscal year that was characterized by substantial inventory corrections on the part of customers and by unprecedented trade conflicts. The Segment Result Margin reached 17.5% after 20.8% in the 2024 fiscal year. The margin was in the forecasted high teens percent range. We were able to partially offset price declines, negative currency effects, and rising idle costs with positive margin effects from our structural improvement program Step Up. The Free Cash Flow was -EUR 1,051 million. The Adjusted Free Cash Flow, which excludes investments in Marvell's Automotive Ethernet business, amounted to +EUR 1,803 million. This corresponds to approximately 12.3% of revenue.

[Translator 1]: This is a respectable result for a fiscal year that was characterized by substantial inventory corrections on the part of customers and by unprecedented trade conflicts. The Segment Result Margin reached 17.5% after 20.8% in the 2024 fiscal year. The margin was in the forecasted high teens percent range. We were able to partially offset price declines, negative currency effects, and rising idle costs with positive margin effects from our structural improvement program Step Up. The Free Cash Flow was -EUR 1,051 million. The Adjusted Free Cash Flow, which excludes investments in Marvell's Automotive Ethernet business, amounted to +EUR 1,803 million. This corresponds to approximately 12.3% of revenue.

At constant currencies, our revenue would have remained almost stable compared to the previous year.

This is a respectable result for a fiscal year that was characterized by substantial inventory, corrections on the part of customers, and by unprecedented trade conflicts.

The second result margin reached 17.5% after $28 million in the 2024 fiscal year. Hence, the margin was in the forecasted high teens percent range. We were able to partially offset price declines, negative currency effects, and rising idle costs with positive margin effects from our structural improvement program, Step Up.

Jochen Hanebeck: All three figures, revenue, margin, and Free Cash Flow were in the lower range of our target operating model applicable during cyclical downturns. In a world full of uncertainty, Infineon remains on course. This is primarily due to the commitment of our teams worldwide. On behalf of the entire management board team, I would like to thank all our employees for their strong performance. Their commitment, passion, and collaboration are key to Infineon's success, even and especially during challenging times. Together, we have achieved much, and together we are also tackling the current fiscal year, creating new things and shaping the future of our company. Esteemed viewers. Our dividend policy is aimed at paying out an unchanged dividend even in the event of stagnating or declining earnings. To Infineon's shareholders at the upcoming annual general meeting.

[Translator 1]: All three figures, revenue, margin, and Free Cash Flow were in the lower range of our target operating model applicable during cyclical downturns. In a world full of uncertainty, Infineon remains on course. This is primarily due to the commitment of our teams worldwide. On behalf of the entire management board team, I would like to thank all our employees for their strong performance. Their commitment, passion, and collaboration are key to Infineon's success, even and especially during challenging times. Together, we have achieved much, and together we are also tackling the current fiscal year, creating new things and shaping the future of our company. Esteemed viewers. Our dividend policy is aimed at paying out an unchanged dividend even in the event of stagnating or declining earnings. To Infineon's shareholders at the upcoming annual general meeting.

Marvel's automotive Ethernet business amounted to approximately $1.803 billion, which corresponds to about 12% or 12.3%.

All three figures—revenue, margin, and free cash flow—were in the lower operating model applicable during cyclical downturns.

In a world full of uncertainty, Infineon remains on course. This is primarily due to the commitment of our teams worldwide.

On behalf of the entire management board team, I would like to thank all our employees for their strong performance.

That commitment, passion, and collaboration are key to Infineon's success. Even, and especially during challenging times, together we have achieved much, and together we are also tackling the current fiscal year, creating new things and shaping the future of our company.

Viewers, our dividend policy is aimed at paying out an unchanged dividend, even in the event of stagnating or declining earnings. We

To Infineon shareholders at the upcoming annual general meeting.

Jochen Hanebeck: We want our shareholders to participate appropriately in Infineon's success, at the same time, we want to maintain the financial leeway necessary to further develop our company for the future. AI will continue to drive the structural need for semiconductors and the demand for our solutions in the coming years. AI functionalities are indeed evolving at an incredible pace. They are changing industries and penetrating all areas of life. Generative AI, which can generate images, text, code, and more, is increasingly being complemented by agentic AI. Artificial intelligence that can perceive, reason, plan, and act. The next big development step is already in sight. Physical AI. It enables autonomous systems, for example, cars or humanoid robots, to perceive and understand the physical world and carry out complex actions.

[Translator 1]: We want our shareholders to participate appropriately in Infineon's success, at the same time, we want to maintain the financial leeway necessary to further develop our company for the future. AI will continue to drive the structural need for semiconductors and the demand for our solutions in the coming years. AI functionalities are indeed evolving at an incredible pace. They are changing industries and penetrating all areas of life. Generative AI, which can generate images, text, code, and more, is increasingly being complemented by agentic AI. Artificial intelligence that can perceive, reason, plan, and act. The next big development step is already in sight. Physical AI. It enables autonomous systems, for example, cars or humanoid robots, to perceive and understand the physical world and carry out complex actions.

We want our shareholders to participate appropriately in Infineon's success. At the same time, we want to maintain the financial leeway necessary to further develop our company for the future. By doing so,

AI will continue to drive the structural need for semiconductors and the demand for our solutions in the coming years.

AI is indeed evolving at an incredible pace. They are changing industries and penetrating all areas of life. Generative AI, which can generate images, text, code, and more, is increasingly being complemented by agentic AI—artificial intelligence that can conceive, reason, plan, and act. The next big development step is already in sight.

Physical AI enables autonomous systems, such as cars or humanoid robots, to perceive and understand the physical world, and carry out complex actions.

Jochen Hanebeck: The use of AI requires enormous computing power that far exceeds the capacities of existing data centers. These requirements are increasing rapidly. Even before 2030, capacities of 1 megawatt and more per IT rack will be required. To put this into perspective, 1 megawatt is equivalent to the power of around 500 clothes irons. The large US tech companies in particular are driving the construction of specialized AI data centers worldwide. These data centers are reaching power levels in the gigawatt range, so we're talking about the power of 500,000 irons and upwards. 1 gigawatt is roughly equivalent to the full load of a nuclear power plant reactor unit. Meta, Amazon, Alphabet, and Microsoft plan to invest over $300 billion in AI technologies and infrastructure this year. The announced projects alone represent an estimated output of up to 10 gigawatts. More will follow suit.

[Translator 1]: The use of AI requires enormous computing power that far exceeds the capacities of existing data centers. These requirements are increasing rapidly. Even before 2030, capacities of 1 megawatt and more per IT rack will be required. To put this into perspective, 1 megawatt is equivalent to the power of around 500 clothes irons. The large US tech companies in particular are driving the construction of specialized AI data centers worldwide. These data centers are reaching power levels in the gigawatt range, so we're talking about the power of 500,000 irons and upwards. 1 gigawatt is roughly equivalent to the full load of a nuclear power plant reactor unit. Meta, Amazon, Alphabet, and Microsoft plan to invest over $300 billion in AI technologies and infrastructure this year. The announced projects alone represent an estimated output of up to 10 gigawatts. More will follow suit.

The use of AI requires enormous computing power that...

Exceeds the capacities of existing data centers. These requirements are increasing rapidly; even before 2030, capacities of 1 megawatt and more per IT rack will be required.

To put this into perspective, 1 megawatt is equivalent to the power of around 500 close. The large U.S. tech companies, in particular, are driving the construction of specialized AI data centers worldwide.

These data centers are reaching power levels in the gigawatt range. So, we're talking about the power of 500,000 ions and upwards. One gigawatt is roughly equivalent to the full load of a nuclear power plant reactor unit.

Meta, Amazon, alphabet, and Microsoft plan to invest over 300 billion US dollars in AI Technologies and infrastructure this year. The announced product projects alone represent an estimated output of up to 10, gigawatts mobile follow suit.

Jochen Hanebeck: Power is the backbone of every AI data center. There is no AI without efficient power electronics. We supply fitting and scalable power solutions for the entire energy conversion chain, from the power grid to the AI processor in the data center. Infineon is a clear leader in this field. We are also rapidly developing our range of efficient and scalable solutions at fast pace. In doing so, we are working closely with leading companies in the industry. An excellent example is our collaboration with NVIDIA in the development of a centralized 800 Volt power supply architecture for future AI data centers. The new system architecture significantly improves energy efficient power distribution in the data center and enables an even more efficient power conversion directly at the AI chip. As a technology leader, we want to shape the rapidly growing market in the coming years.

[Translator 1]: Power is the backbone of every AI data center. There is no AI without efficient power electronics. We supply fitting and scalable power solutions for the entire energy conversion chain, from the power grid to the AI processor in the data center. Infineon is a clear leader in this field. We are also rapidly developing our range of efficient and scalable solutions at fast pace. In doing so, we are working closely with leading companies in the industry. An excellent example is our collaboration with NVIDIA in the development of a centralized 800 Volt power supply architecture for future AI data centers. The new system architecture significantly improves energy efficient power distribution in the data center and enables an even more efficient power conversion directly at the AI chip. As a technology leader, we want to shape the rapidly growing market in the coming years.

Power is the backbone of every AI data center.

There is no AI without efficient power electronics.

We supply fitting and scalable power solutions for the entire energy conversion chain, from the power grid to the AI processor in the data center.

Jochen Hanebeck: The fact that our solutions address an urgent and growing demand is also reflected in our business performance. We were able to almost triple our revenue. Fiscal year, reaching over EUR 700 million. This is around EUR 100 million more than we had forecast despite negative currency effects. We are also expecting EUR 1.5 billion, which would mean more than doubling the revenues the previous fiscal year. We also expect dynamic medium-term growth in this area. We expect the addressable market for Infineon to reach EUR 8 to 12 billion by the end of the decade. In addition, AI is increasingly developing beyond centralized cloud systems. Edge AI, the intelligent processing and analysis of data directly in the device or in its immediate vicinity, is becoming an important driver for our business.

[Translator 1]: The fact that our solutions address an urgent and growing demand is also reflected in our business performance. We were able to almost triple our revenue. Fiscal year, reaching over EUR 700 million. This is around EUR 100 million more than we had forecast despite negative currency effects. We are also expecting EUR 1.5 billion, which would mean more than doubling the revenues the previous fiscal year. We also expect dynamic medium-term growth in this area. We expect the addressable market for Infineon to reach EUR 8 to 12 billion by the end of the decade. In addition, AI is increasingly developing beyond centralized cloud systems. Edge AI, the intelligent processing and analysis of data directly in the device or in its immediate vicinity, is becoming an important driver for our business.

As a technology leader, we want to shape the rapidly growing market in the coming year. The fact that our solutions address an urgent and growing demand is also reflected in our business performance, able to almost triple our revenues.

This school year, reaching over €700 million. This is around €100 million more than we had forecast, despite negative currency effects.

We are also.

In Europe, revenues are expected to reach around €1.5 billion, which would mean more than doubling the revenues of the previous fiscal year. We also expect dynamic medium-term growth in this area.

We expect the addressable market for Infineon to reach €8 billion to €12 billion by the end of the decade.

In addition, AI is increasingly developing beyond centralized cloud systems.

Jochen Hanebeck: Infineon supports developers of Edge AI applications with a complete system based on our specialized microcontroller PSOC Edge, which combines machine learning, advanced human machine interaction, low energy consumption, and integrated security. Added to this are our complementary sensor portfolio and our own Edge AI development platform, DEEPCRAFT™. By doing so, we offer a comprehensive set of hardware and software solutions for easy implementation of AI functionalities in AIoT devices. Our customers can either develop their own AI models from scratch or integrate ready-made models and solutions into their products, thereby reducing time to market. As already mentioned, we are on the verge of the next big technological step in the AI evolution, Physical AI. Take cars as an example. With the trend towards software-defined vehicles, the automotive industry is paving the way to a new era of mobility. Software supported by AI is at the heart of the vehicle.

[Translator 1]: Infineon supports developers of Edge AI applications with a complete system based on our specialized microcontroller PSOC Edge, which combines machine learning, advanced human machine interaction, low energy consumption, and integrated security. Added to this are our complementary sensor portfolio and our own Edge AI development platform, DEEPCRAFT™. By doing so, we offer a comprehensive set of hardware and software solutions for easy implementation of AI functionalities in AIoT devices. Our customers can either develop their own AI models from scratch or integrate ready-made models and solutions into their products, thereby reducing time to market. As already mentioned, we are on the verge of the next big technological step in the AI evolution, Physical AI. Take cars as an example. With the trend towards software-defined vehicles, the automotive industry is paving the way to a new era of mobility. Software supported by AI is at the heart of the vehicle.

Edge AI, the intelligent processing and analysis of data directly in the device or in its immediate vicinity, is becoming an important driver for our business. Infineon supports developers of edge AI applications with a complete system based on our specialized microcontroller, PSoC Edge, which combines machine learning, advanced human-machine interaction, and lower power consumption.

Energy consumption and integrated security and our own Edge AI development platform, Deep Craft.

By doing so, we offer a comprehensive set of hardware and software solutions for easy implementation of AI functionalities in new devices.

Our customers can either develop their own AI models from scratch or integrate ready-made models and solutions into their products, thereby reducing time to market.

Jochen Hanebeck: This enables new automated driving functions and enhanced safety features. Issues can be resolved without the need for a visit to the car repair shop, simply via software updates over the air. Software-defined vehicles lead to a new level of flexibility and efficiency. However, the necessary change of vehicle architecture is complex. Conventional electric and electronic vehicle architectures with a large number of distributor control units in the vehicle will not be enough. The automotive industry is therefore moving towards a more centralized approach. Infineon is playing a key role in this development. We are working together closely with many customers and partners to drive the development of software-defined vehicles around the world. In addition to our system expertise, we benefit from our global market leadership in automotive semiconductors. We have consistently expanded our position in recent years.

As already mentioned, we are on the verge of the next big technological step in the AI evolution: physical AI. Take cars as an example, with the trend towards software-defined vehicles. The automotive industry is paving the way to a new era of mobility, where software supported by AI is at the heart of the vehicle. This enables new automated driving functions and enhanced safety features. Issues can be resolved without the need for a visit to the car repair shop, simply via software updates over the app, providing a new level of flexibility and efficiency. However, the necessary change of vehicle architecture is complex.

Conventional electric and electronic vehicle architectures, with a large number of distributor control units in the vehicle, will not be enough.

The automotive industry is therefore moving towards a more centralized approach. Infineon is playing a key role in this development. We are working closely with many customers and partners to drive the development of software to find vehicles around the world.

We benefit from our global market leadership and automotive semiconductors.

Jochen Hanebeck: Our rapidly growing business of microcontrollers for automotive applications has contributed significantly to this development. These products are becoming increasingly important for controlling various critical vehicle functions in software-defined vehicles. We want to expand our leading position in microcontrollers to the automotive industry. The acquisition of the automotive Ethernet business of the US company Marvell Technology, which we successfully completed last summer, was strategically important to this end. Ethernet is a key technology in software-defined vehicles. The technology is a perfect addition to our existing product portfolio. In combination with our AURIX microcontroller, it lets us offer a comprehensive product range that includes both communication solutions and real-time control. In addition to the car, Ethernet technology is also essential to promising applications in the Internet of Things, especially for humanoid robots. Esteemed viewers, Infineon is shaping this future with solutions that deliver added value to the economy and society.

We have consistently expanded our position in recent years. Our rapidly growing business with microcontrollers for automotive applications has contributed significantly to this development.

These products are becoming increasingly important for controlling various critical vehicle functions in software-defined vehicles. We want to expand our leading position in microcontrollers to the automotive industry. The acquisition of the automotive Ethernet business of the US company in Marbella Technology, which we successfully completed last summer, was strategically important to this end. Ethernet is a key technology in software-defined vehicles. The technology is a perfect addition to our existing product portfolio.

I'm coming at you in combination with our RX microcontroller.

It lets us offer a comprehensive product range that includes both communication solutions and real-time control.

In addition to the car, Ethernet technology is also essential to promising applications in the Internet of Things, especially for humanoid robots.

The steam viewers Infineon is shaping this future with solutions that deliver added value to the economy and society.

Jochen Hanebeck: One technology with great potential for value creation is quantum computing. Likely the next disruptive technology to follow artificial intelligence. Quantum computers use the laws of quantum mechanics to solve certain particularly complex tasks much more efficiently and quickly than conventional computers can. This opens up completely new possibilities in various application areas, from materials research to developing new drugs and optimizing supply chains. At Infineon, we have key competencies for quantum computing. Our strategic partners include Quantinuum, a company in which NVIDIA also holds a stake, and IonQ, the quantum company with the highest market value at present. Together, we are now taking the technology from the lab into application, pushing the boundaries of quantum computing. I'd like to offer deeper insight by sharing voices from our partners in academia and industry. Please take a look for yourself.

[Translator 1]: One technology with great potential for value creation is quantum computing. Likely the next disruptive technology to follow artificial intelligence. Quantum computers use the laws of quantum mechanics to solve certain particularly complex tasks much more efficiently and quickly than conventional computers can. This opens up completely new possibilities in various application areas, from materials research to developing new drugs and optimizing supply chains. At Infineon, we have key competencies for quantum computing. Our strategic partners include Quantinuum, a company in which NVIDIA also holds a stake, and IonQ, the quantum company with the highest market value at present. Together, we are now taking the technology from the lab into application, pushing the boundaries of quantum computing. I'd like to offer deeper insight by sharing voices from our partners in academia and industry. Please take a look for yourself.

One technology with great potential for value creation is quantum computing, likely the next disruptive technology to follow artificial intelligence.

System computers utilize the laws of quantum mechanics to solve certain particularly complex tasks much more efficiently and quickly than conventional computers can.

This opens up completely new possibilities in various application areas, from materials research to developing new drugs and optimizing supply chains. We have key competencies for quantum computing.

Power Strategic Partners include Continuum, a company in which Nvidia also holds a stake, and IonQ, the quantum company with the highest market value at present. Together, we are now taking the technology from the lab into application, pushing the boundaries of quantum computing.

I'd like to offer deeper insight by sharing voices from our partners in academia and industry. Please take a look for yourself.

Clemens Rössler: Quantum computing is a proposal for how to use the laws of physics, to solve certain specific problems, much, much faster than we know how to solve them with conventional computers.

[Unknown Speaker 1]: Quantum computing is a proposal for how to use the laws of physics, to solve certain specific problems, much, much faster than we know how to solve them with conventional computers.

Richard Kunčič: Quantum computing is a way that we can represent how nature operates in a way that we could never approximate it through our creation of digital semiconductor-based computing.

[Unknown Speaker 2]: Quantum computing is a way that we can represent how nature operates in a way that we could never approximate it through our creation of digital semiconductor-based computing.

[Company Representative] (Infineon Technologies): In the future, quantum computing, in particular, when teamed up with AI training hardware, will be able to solve a next generation of problems.

[Unknown Speaker 3]: In the future, quantum computing, in particular, when teamed up with AI training hardware, will be able to solve a next generation of problems.

Clemens Rössler: The quantum computer could help understanding the rate of a chemical reaction that might be involved in making fertilizer in a drug, you know, binding to a protein, building high temperature superconductors, building better batteries, better solar cells. These are all many body quantum physics problems. These are not the things that most of us are using our computers for. Even just a few successes here could form the basis of billion-dollar industries.

[Unknown Speaker 4]: The quantum computer could help understanding the rate of a chemical reaction that might be involved in making fertilizer in a drug, you know, binding to a protein, building high temperature superconductors, building better batteries, better solar cells. These are all many body quantum physics problems. These are not the things that most of us are using our computers for. Even just a few successes here could form the basis of billion-dollar industries.

Quantum Computing is a proposal for how to use the laws of physics to solve certain specific problems, a much, much faster than we know how to solve them with conventional computers. 1 of computing is a way that we can represent how nature operates in a way that we could never approximate it through our creational semiconductor based Computing in the future Quantum Computing. In particular, when teamed up with AI training Hardware, will be able to solve the next generation of problems. Quantum computer could help understanding the rate of a chemical reaction that might be involved in making fertilizer in in a drug, you know, binding to a protein building, high temperature, superconductors building better batteries, better solar cells. These are all many body quantum physics problems. These are not the things that that that most of us are using our computers for. But even just a few successes here could form the basis of

billion dollar industry.

[Company Representative] (Infineon Technologies): We at Infineon started to invest in quantum computing back in 2017 already. We believe that quantum computing will be the next big transformational technology to really push the frontiers of what is possible with respect to simulations and computation. Quantum computing is very real already. We are building hardware. We have wafers with ion traps that we built for our lead customers. That's no longer just science. That's engineering, and this is what we are really good at. The key thing in making quantum computing usable is to have high amount of qubits, but also have them in the right fidelity, so with very low error rates. What we at Infineon contribute to this challenge is the technological foundation in our manufacturing processes that allow to scale these qubits in a high fidelity.

[Unknown Speaker 5]: We at Infineon started to invest in quantum computing back in 2017 already. We believe that quantum computing will be the next big transformational technology to really push the frontiers of what is possible with respect to simulations and computation. Quantum computing is very real already. We are building hardware. We have wafers with ion traps that we built for our lead customers. That's no longer just science. That's engineering, and this is what we are really good at. The key thing in making quantum computing usable is to have high amount of qubits, but also have them in the right fidelity, so with very low error rates. What we at Infineon contribute to this challenge is the technological foundation in our manufacturing processes that allow to scale these qubits in a high fidelity.

Thinking already, we believe that quantum computing will be the next big transformational technology to really push the frontiers of what is possible with respect to simulations and computation.

Quantum computing is very real already. We are building hardware. We have wafers with iron traps that we built for our lead customers. That's no longer just science; that's engineering. This is what we are really good at. The key thing in making quantum computing usable is to have a high amount of qubits, but also have them with high fidelity, meaning very low error rates. What we, as an experienced team, contribute to this challenge is the technological foundation in our manufacturing processes that allows us to scale these qubits with high fidelity.

[Company Representative] (Infineon Technologies): I think this is the future. I think there was a lot of progress in ion trap development, quantum computing development the last years. One day we will really be able to perform useful quantum computing.

[Unknown Speaker 6]: I think this is the future. I think there was a lot of progress in ion trap development, quantum computing development the last years. One day we will really be able to perform useful quantum computing.

This is the future. I think there was a lot of progress in Iraq, development, and quantum computing development over the last year. One day, we will really be able to perform useful quantum computing.

Jochen Hanebeck: You heard it. Quantum computing is no longer a distant vision. It is becoming a reality. Quantum computing and artificial intelligence are two of the most exciting and forward-looking technologies of our time. Above all, their interaction promises enormous progress in areas where conventional computers are reaching their limits. These two key technologies reinforce each other. Firstly, artificial intelligence accelerates quantum computers by improving error correction, calibration, and control of quantum hardware. This removes major hurdles to the scaling of quantum computing. At the same time, quantum computers accelerate AI by generating precise output data that serves as the basis for AI, for example, in developing new molecules for drugs, batteries, and catalysts. Other potential applications range from optimization problems in logistics to cybersecurity and financial analysis. Quantum computing, therefore, does not replace AI, but rather expands its possibilities, thus opening new perspectives for data-driven innovations.

[Translator 1]: You heard it. Quantum computing is no longer a distant vision. It is becoming a reality. Quantum computing and artificial intelligence are two of the most exciting and forward-looking technologies of our time. Above all, their interaction promises enormous progress in areas where conventional computers are reaching their limits. These two key technologies reinforce each other. Firstly, artificial intelligence accelerates quantum computers by improving error correction, calibration, and control of quantum hardware. This removes major hurdles to the scaling of quantum computing. At the same time, quantum computers accelerate AI by generating precise output data that serves as the basis for AI, for example, in developing new molecules for drugs, batteries, and catalysts. Other potential applications range from optimization problems in logistics to cybersecurity and financial analysis. Quantum computing, therefore, does not replace AI, but rather expands its possibilities, thus opening new perspectives for data-driven innovations.

Quantum computing. If you've heard of it, quantum computing is no longer a distant possibility.

Vision. It is becoming a reality. Quantum computing and artificial intelligence are two of the most exciting and forward-looking technologies of our time. Above all, their interaction promises enormous progress in areas where conventional computers are reaching their limits.

These two key technologies reinforce each other.

Firstly, artificial intelligence accelerates quantum computers by improving error correction, calibration, and control of quantum hardware. This removes major hurdles to the scaling of quantum computing.

At the same time, quantum computers accelerate AI by generating precise output data that serves as the basis for AI, for example, in developing new molecules for drugs, batteries, and catalysts.

Other potential applications range from optimization problems in logistics to cybersecurity and financial analysis, quantum computing. Therefore, it does not replace AI but rather expands its possibilities, thus opening new perspectives for data-driven innovations.

Jochen Hanebeck: Here you can see one of our wafers with trapped ion quantum processors, which we are already developing, delivering to our lead customers. Three things are crucial for industrial-grade quantum computers: the quality of the qubits, replicability, and scalability. Our quantum platform and our semiconductor production bring precisely these characteristics to the quantum ecosystem. For our customers, this means a clear path from research to application. A complete picture of quantum computing also includes a look at cybersecurity. Powerful quantum computers will be able to break established encryption methods within a few years. An enormous security risk for ID documents and payment cards. For software-based devices and applications, for example, in industry, vehicles, and aerospace. In particular, durable products with long development cycles are at risk.

[Translator 1]: Here you can see one of our wafers with trapped ion quantum processors, which we are already developing, delivering to our lead customers. Three things are crucial for industrial-grade quantum computers: the quality of the qubits, replicability, and scalability. Our quantum platform and our semiconductor production bring precisely these characteristics to the quantum ecosystem. For our customers, this means a clear path from research to application. A complete picture of quantum computing also includes a look at cybersecurity. Powerful quantum computers will be able to break established encryption methods within a few years. An enormous security risk for ID documents and payment cards. For software-based devices and applications, for example, in industry, vehicles, and aerospace. In particular, durable products with long development cycles are at risk.

Processes which we are already developing and delivering to our lead customers.

Three things are crucial for industrial-grade quantum computers: the quality of the qubits, replicability and scalability of our quantum platform, and our semiconductor production. These characteristics bring precision to the quantum ecosystem for our customers. This means a clear path from research to application.

So I'm fortunate that a complete picture of quantum computing also includes a look at cybersecurity. Quantum computers will be able to break established encryption methods within a few years.

An enormous security risk for ID documents and payment cards.

For software-based devices and applications, for example, in industry vehicles and aerospace.

Jochen Hanebeck: That's why we are already supporting our customers today with solutions for post-quantum cryptography based on the principle of protecting data today that must remain confidential tomorrow, so in the quantum age. We back this up with certified security. Infineon is the first manufacturer worldwide to receive the Common Criteria certification for the implementation of a post-quantum cryptography algorithm on a security controller. Common Criteria is an internationally recognized standard that independent experts use to systematically test and certify the security of IT products. Thus, we are sending a strong signal of trust and security at the highest level. Esteemed viewers, before moving on to our outlook for the 2026 fiscal year, a note for our guests on-site. Following this press conference, we cordially invite you to visit our exhibition in the Cubist Foyer.

[Translator 1]: That's why we are already supporting our customers today with solutions for post-quantum cryptography based on the principle of protecting data today that must remain confidential tomorrow, so in the quantum age. We back this up with certified security. Infineon is the first manufacturer worldwide to receive the Common Criteria certification for the implementation of a post-quantum cryptography algorithm on a security controller. Common Criteria is an internationally recognized standard that independent experts use to systematically test and certify the security of IT products. Thus, we are sending a strong signal of trust and security at the highest level. Esteemed viewers, before moving on to our outlook for the 2026 fiscal year, a note for our guests on-site. Following this press conference, we cordially invite you to visit our exhibition in the Cubist Foyer.

In particular, durable products with long development cycles are at risk. That's why we are already supporting our customers today with solutions for post-quantum cryptography based on the principle of protecting day-to-day data that must remain confidential tomorrow. So, in the quantum age,

And we back this up with divided security. Infineon is the first Mac manufacturer worldwide to receive the Common Criteria certification for the implementation of a post-quantum cryptography algorithm on a security controller. Common Criteria is an internationally recognized standard that independent experts use to systematically test and certify the security of IT products.

We are sending a strong signal of trust and security at the highest level.

Esteemed viewers.

Jochen Hanebeck: You will have the opportunity to discuss the topic of quantum computing in greater depth with our experts. Richard Kunčič, head of our Power Switches business line, and Clemens Rössler from our ion trap systems team will be happy to assist you. Many thanks to both colleagues. Now to our expectations for 2026. We continue to operate in an environment in which short-term or last-minute ordering behavior limits the transparency of demand trends. This makes predicting business development for an entire fiscal year a challenging task. Inventories in the supply chains have largely normalized. It is end customer demand that will determine the extent and pace of the recovery in the semiconductor markets. We anticipate that the volume growth will return over the course of the fiscal year and that we will see a gradual upturn.

[Translator 1]: You will have the opportunity to discuss the topic of quantum computing in greater depth with our experts. Richard Kunčič, head of our Power Switches business line, and Clemens Rössler from our ion trap systems team will be happy to assist you. Many thanks to both colleagues. Now to our expectations for 2026. We continue to operate in an environment in which short-term or last-minute ordering behavior limits the transparency of demand trends. This makes predicting business development for an entire fiscal year a challenging task. Inventories in the supply chains have largely normalized. It is end customer demand that will determine the extent and pace of the recovery in the semiconductor markets. We anticipate that the volume growth will return over the course of the fiscal year and that we will see a gradual upturn.

Before moving on to our outlook for the 2026 fiscal year, I would like to note for our guests on site that, following this press conference, we cordially invite you to visit our exhibition in the cubis. You will have the opportunity to discuss the topic of quantum computing in greater depth with our experts. Richard Kunic, head of our Power Switches business line, and our Ion Trap Systems team will be happy to assist you. Many thanks to both colleagues.

Now, to our expectations for 2026, we continue to operate in an environment in which short-term or last-minute ordering behavior limits the transparency of demand trends. This makes predicting business development for an entire fiscal year a challenging task.

Inventories in the supply chains have largely normalized.

It is end customer demand that will determine the extent and pace of the recovery in the semiconductor markets.

We anticipate that the volume growth will return over the course of the fiscal year and that we will see a gradual upturn.

Jochen Hanebeck: In the current Q1, we expect revenues of around EUR 3.6 billion. This forecast is based on an exchange rate of $1.15 to the euro. The Segment Result Margin will be in the mid to high teen percentage range. This would correspond to a revenue decline of around 9% compared to the previous quarter, above our typical seasonality. We see a short-term risk that some automotive suppliers and manufacturers will reduce their inventories to no longer viable levels by the end of the calendar year. We also expect our industrial customers to reduce their inventories very significantly towards the end of December. However, market transparency is low. Therefore, we must consider a certain range of possible outcomes for the 2026 fiscal year. In our base case, we anticipate moderate revenue growth.

[Translator 1]: In the current Q1, we expect revenues of around EUR 3.6 billion. This forecast is based on an exchange rate of $1.15 to the euro. The Segment Result Margin will be in the mid to high teen percentage range. This would correspond to a revenue decline of around 9% compared to the previous quarter, above our typical seasonality. We see a short-term risk that some automotive suppliers and manufacturers will reduce their inventories to no longer viable levels by the end of the calendar year. We also expect our industrial customers to reduce their inventories very significantly towards the end of December. However, market transparency is low. Therefore, we must consider a certain range of possible outcomes for the 2026 fiscal year. In our base case, we anticipate moderate revenue growth.

In the current first quarter, we expect revenues to be around €3.6 billion. This forecast is based on an exchange rate of 1.15 US dollars to the euro. The segment result margin will be in the mid to high teen percentage range.

Responding to a revenue decline of around 9% compared to the previous quarter, we acknowledge our typical seasonality. We see a short-term risk that some automotive suppliers and manufacturers will reduce their inventories to no longer viable levels by the end of the calendar year.

We also expect our industrial customers to reduce their inventories very significantly towards the end of December.

However,

Market. Transparency is low.

And therefore, we must consider a certain range of possible outcomes for the 2026 fiscal year. In our base case, we anticipate moderate revenue growth.

Jochen Hanebeck: The negative effects of the expected usual price declines and unfavorable currency developments are likely to slow down revenue growth. We expect a US dollar to euro exchange rate of 1.15. This is a weaker dollar compared to the average exchange rate of 1.11 in the 2025 fiscal year. According to our rule of thumb, this effect will reduce our revenues by around EUR 400 million. The market environment remains mixed. We are cautious regarding the automotive semiconductor market in the view of various factors. We expect trade and tariff conflicts to have a negative impact on vehicle prices and customer demand. Growth in the electric vehicle market in China is likely to slow. Now that the share of electric vehicles in new car sales has exceeded 50% and government subsidies are being reduced.

[Translator 1]: The negative effects of the expected usual price declines and unfavorable currency developments are likely to slow down revenue growth. We expect a US dollar to euro exchange rate of 1.15. This is a weaker dollar compared to the average exchange rate of 1.11 in the 2025 fiscal year. According to our rule of thumb, this effect will reduce our revenues by around EUR 400 million. The market environment remains mixed. We are cautious regarding the automotive semiconductor market in the view of various factors. We expect trade and tariff conflicts to have a negative impact on vehicle prices and customer demand. Growth in the electric vehicle market in China is likely to slow. Now that the share of electric vehicles in new car sales has exceeded 50% and government subsidies are being reduced.

The negative effects of the expected usual price declines and unfavorable currency developments are likely to slow down revenue growth.

We expect a US dollar to euro exchange rate of 1.15. This is a weaker dollar compared to the average exchange rate of 1.11 in the 2025 fiscal year.

According to our rule of thumb, this effect will reduce our revenues by around €400 million.

The market environment remains mixed in the automotive sector.

Given various factors, we expect trade and tariff conflicts to have a negative impact on vehicle prices and customer demand.

Growth in the electric vehicle market in China is likely to slow. Now that the share of electric vehicles in new car sales has exceeded 50% and government subsidies are being reduced.

Jochen Hanebeck: Momentum in Europe is likely to increase, while in the US it will probably slow considerably due to the expiration of tax incentives. Some Western manufacturers are postponing the launch of several new electric vehicle platforms in favor of combustion models. However, the outlook for software-defined vehicles is more favorable. We expect market momentum to accelerate from the second half of the fiscal year as increasingly more software-defined models come onto the market. This development means that more and more semiconductors are being installed in vehicles. We see a mixed picture for industrial applications. Macroeconomic uncertainty is delaying the recovery and demand for industrial drives. Similarly, there are still no signs of an upturn in air conditioning systems or household applications. In renewable energies, record levels of solar and wind energy installations are forecast for 2025, particularly in China.

[Translator 1]: Momentum in Europe is likely to increase, while in the US it will probably slow considerably due to the expiration of tax incentives. Some Western manufacturers are postponing the launch of several new electric vehicle platforms in favor of combustion models. However, the outlook for software-defined vehicles is more favorable. We expect market momentum to accelerate from the second half of the fiscal year as increasingly more software-defined models come onto the market. This development means that more and more semiconductors are being installed in vehicles. We see a mixed picture for industrial applications. Macroeconomic uncertainty is delaying the recovery and demand for industrial drives. Similarly, there are still no signs of an upturn in air conditioning systems or household applications. In renewable energies, record levels of solar and wind energy installations are forecast for 2025, particularly in China.

In Europe, it is likely to increase.

While in the U.S., it will probably slow considerably due to the expiration of tax incentives.

As a result, some Western manufacturers are proposing postponing the launch of several new electric vehicle platforms in favor of combustion models.

However, the outlook for software-defined vehicles is more favorable. We expect market momentum to accelerate from the second half of the fiscal year, as increasingly more software-defined models come onto the market.

This development means that more and more semiconductors are being installed in vehicles.

We see a mixed picture for industrial applications. Macroeconomic uncertainty is delaying the recovery in demand for industrial drives.

Just similarly, there are still no signs of an upturn in air conditioning systems or household applications.

Jochen Hanebeck: However, growth in this market is likely to slow down in the future. We do not expect other world regions to fully compensate for this development. Nevertheless, we see the structural semiconductor demand for the expansion of energy infrastructure is increasing. A higher share of renewable energy in the overall energy mix and investments in AI data centers in various parts of the world would necessitate a significant expansion and strengthening of the power grid. As already mentioned, we expect to more than double our revenues with our power supply solutions for AI data centers to around 1.5 billion EUR in the current fiscal year. Growth momentum in consumer-related applications is still subdued. Overall economic risks are dampening both consumer confidence and corporate spending, thus demand for IoT and security solutions also remains weak. Now to our profitability outlook.

[Translator 1]: However, growth in this market is likely to slow down in the future. We do not expect other world regions to fully compensate for this development. Nevertheless, we see the structural semiconductor demand for the expansion of energy infrastructure is increasing. A higher share of renewable energy in the overall energy mix and investments in AI data centers in various parts of the world would necessitate a significant expansion and strengthening of the power grid. As already mentioned, we expect to more than double our revenues with our power supply solutions for AI data centers to around 1.5 billion EUR in the current fiscal year. Growth momentum in consumer-related applications is still subdued. Overall economic risks are dampening both consumer confidence and corporate spending, thus demand for IoT and security solutions also remains weak. Now to our profitability outlook.

In renewable energy records, levels of solar and wind energy installations are forecast to rise significantly by 2025, particularly in China. However, growth in this market is likely to slow down in the future. We do not expect other world regions to fully compensate for this development.

We see the structural semiconductor demand for the expansion of energy, with infrastructures increasing a higher share of renewable energy in the overall energy mix and investments. The growth of AI data centers in various parts of the world would necessitate a significant expansion and strengthening of the power grid.

As already mentioned, we expect to more than double our revenues with our power supply solutions for AI data centers to around €1.5 billion in the current fiscal year.

Growth, momentum, and consumer-related applications are self-reviewed. Overall, economic risks are dampening both consumer confidence and corporate spending.

Live plus demand for IoT and security solutions also remains weak.

Now, to our profitability Outlook,

Jochen Hanebeck: The Segment Result Margin in the 2026 fiscal year is expected to come in at a high teen % range. The positive effect of volume growth will be offset by unfavorable currency development and the usual price declines. We expect further positive effects from our Step Up program. Cyclical idle costs in our production facilities is likely to proceed only very slowly. We are planning invest. A focus area will be finalizing the construction of our Smart Power Fab in Dresden and equipping it in time to meet strongly growing customer demand for AI, our AI power solutions. Power Fab. In October, we reached the ready for equipment milestone. We are ahead of our schedule and expect to be able to officially open the factory in summer 2026.

[Translator 1]: The Segment Result Margin in the 2026 fiscal year is expected to come in at a high teen % range. The positive effect of volume growth will be offset by unfavorable currency development and the usual price declines. We expect further positive effects from our Step Up program. Cyclical idle costs in our production facilities is likely to proceed only very slowly. We are planning invest. A focus area will be finalizing the construction of our Smart Power Fab in Dresden and equipping it in time to meet strongly growing customer demand for AI, our AI power solutions. Power Fab. In October, we reached the ready for equipment milestone. We are ahead of our schedule and expect to be able to officially open the factory in summer 2026.

The segment result margin in the 2026 fiscal year is expected to come in at a high 10 percentage range.

The positive effect of volume growth will be offset by unfavorable currency developments and the usual price declines.

We expect further positive effects from our Step Up program, as an increase in number.

Cyclical Idol.

Costs in our production facilities are likely to receive a new very slowly. We are planning on investing.

In.

Focus area will be finalizing the construction of our smart power FAP in Dresden and equipping it in time to meet strongly growing customer demand for AI, our AI Power Solutions.

Power.

In October.

But we reached the "ready for equipment" milestone. We are ahead of our schedule and expect to be able to officially open the factory in the summer of 2026.

Jochen Hanebeck: Free cash flow adjusted for investments in front-end builders is expected to be around EUR 1.6 billion. The reported free cash flow is expected to be around EUR 1.1 billion. Esteemed viewers, let me summarize. Firstly, Infineon has met expectations in the 2025 fiscal year, despite challenging macroeconomic. Recovery and moderate revenue growth. Secondly, artificial intelligence is driving semiconductor demand. Our revenue from power solutions for AI data centers is growing rapidly. We continue to develop our portfolio of an efficient and scalable solutions at high speed. Thirdly, quantum computing is becoming the next potentially disruptive technology. We are shaping the quantum age with semiconductor solutions for industrial-grade quantum computing and post-quantum cryptography. Thank you for listening. Together with the management board team, I will now be happy to answer any questions you may have.

[Translator 1]: Free cash flow adjusted for investments in front-end builders is expected to be around EUR 1.6 billion. The reported free cash flow is expected to be around EUR 1.1 billion. Esteemed viewers, let me summarize. Firstly, Infineon has met expectations in the 2025 fiscal year, despite challenging macroeconomic. Recovery and moderate revenue growth. Secondly, artificial intelligence is driving semiconductor demand. Our revenue from power solutions for AI data centers is growing rapidly. We continue to develop our portfolio of an efficient and scalable solutions at high speed. Thirdly, quantum computing is becoming the next potentially disruptive technology. We are shaping the quantum age with semiconductor solutions for industrial-grade quantum computing and post-quantum cryptography. Thank you for listening. Together with the management board team, I will now be happy to answer any questions you may have.

Free cash flow adjusted for investments in front end Builders is expected to be around €1.6 billion, and the reported free cash flow is expected to be around €1.1 billion.

It seems viewers. Let me summarize.

Firstly, Infineon has met expectations in the 2025 fiscal year, despite challenging macroeconomic conditions.

Market recovery.

And moderate Revenue growth.

So, secondly, artificial intelligence is driving semiconductor demand. Our revenue from Power Solutions for AI data centers is growing rapidly.

Technology. We are shaping the quantum age with semiconductor solutions for industrial-grade quantum computing and post-quantum cryptography.

Thank you for listening, together with the management board team. I will now be happy to answer any questions you may have.

Operator: Thank you, Jochen. Viewers, audience, we now move over to the Q&A session. To explain the procedure to you, if you are following us via the live stream, please submit questions in writing. You could see the tools for this on the right-hand side of the stream. To those of you who are in the room here today, please raise your hand before you ask a question. We will pass you a roving mic, and before you ask your question, please let us know who you are and your media outlet. Let's get started. I see that we have Joachim Hofer from Handelsblatt. Please go ahead. No, that's fine already. The question has already been answered. I would like to know about the Nexperia case. What are the ramifications? Negative.

[Translator 2]: Thank you, Jochen. Viewers, audience, we now move over to the Q&A session. To explain the procedure to you, if you are following us via the live stream, please submit questions in writing. You could see the tools for this on the right-hand side of the stream. To those of you who are in the room here today, please raise your hand before you ask a question. We will pass you a roving mic, and before you ask your question, please let us know who you are and your media outlet. Let's get started. I see that we have Joachim Hofer from Handelsblatt. Please go ahead. No, that's fine already. The question has already been answered. I would like to know about the Nexperia case. What are the ramifications? Negative.

Audience, we now move over to the Q&A session to explain the procedure to you. If you are following us via the live stream, please submit questions in writing. You can see the tools for this on the right-hand side of the stream. To those of you who are in the room here today, please raise your hand before you ask your question. We will pass through a roving mic, and before you ask your question, please let us know who you are and your media outlet. So let's get started. I see that we have from Handelsblatt. Please go ahead. No, that's fine. Already your question has been answered. I would like to know about the next Xperia case. What are the ramifications?

Negative. And it also,

Operator: I'd also like to know whether you have an opinion on whether fundamentally this means anything for you and for the world, namely the fact that China is expanding and perhaps what other conclusions you could draw from that. Well, the case that has been covered in the last couple of weeks by the media and has made headlines demonstrates, first of all, once again, the realization that semiconductors are not just-in-time products. This applies to standard semiconductors as well as the entire other portfolio, components such as power switches and power semiconductors. In the supply chain, you need inventories in order to make sure that these two value creation chains of the automotive industry on the one hand and the semiconductor industry on the other hand are decoupled from each other.

[Translator 2]: I'd also like to know whether you have an opinion on whether fundamentally this means anything for you and for the world, namely the fact that China is expanding and perhaps what other conclusions you could draw from that. Well, the case that has been covered in the last couple of weeks by the media and has made headlines demonstrates, first of all, once again, the realization that semiconductors are not just-in-time products. This applies to standard semiconductors as well as the entire other portfolio, components such as power switches and power semiconductors. In the supply chain, you need inventories in order to make sure that these two value creation chains of the automotive industry on the one hand and the semiconductor industry on the other hand are decoupled from each other.

I would like to know whether you have an opinion on whether, fundamentally, this means anything for you. And for the world, mainly the fact that China is expanding, and perhaps what other conclusions you could draw from that.

Well, the case that has been covered in the last couple of quarters...

Weeks by the media and has made headlines demonstrates the first of all, once again.

Operator: Because when such situations occur, you see what could happen, and you can also have natural catastrophes and other disasters that you have to be resistant to. That's very important. Now, what does that mean for Infineon? Well, on the one hand, if production lines actually did grind to a halt, it would affect us as well because sales would therefore tank. At the same time you can take a different view. This could be a wake-up call to industry to take a very close look at inventories. As a matter of principle, we at Infineon are extremely resilient in our setup thanks to our manufacturing landscape as a result. In some areas, we were able to help. However, the overlap in products between Infineon and Nexperia is rather limited. Oh, sorry. The second question, the geopolitical ramifications.

[Translator 2]: Because when such situations occur, you see what could happen, and you can also have natural catastrophes and other disasters that you have to be resistant to. That's very important. Now, what does that mean for Infineon? Well, on the one hand, if production lines actually did grind to a halt, it would affect us as well because sales would therefore tank. At the same time you can take a different view. This could be a wake-up call to industry to take a very close look at inventories. As a matter of principle, we at Infineon are extremely resilient in our setup thanks to our manufacturing landscape as a result. In some areas, we were able to help. However, the overlap in products between Infineon and Nexperia is rather limited. Oh, sorry. The second question, the geopolitical ramifications.

Yeah, kenntnis realization that semiconductors are not just Just in Time products. This applies to standard semiconductors as well as the entire other portfolios components such as um Power switches and uh Power semiconductors in the supply chain. You need inventories in order to make sure that these 2 value creators chains of the automotive industry on the 1 hand and the semiconductor industry on the on the hand are decoupled from each other. Because when such situations occur uh you see what could happen and you can also have natural catastrophes and other disasters that you have to be resistant to. So that's very important. Now, what does that mean for intent? Well, on the 1 hand,

Production lines actually did grind to a halt. It would affect us as well because, uh, sales would therefore tank. But at the same time, you can take a different view. This could be a wake-up call to the industry to take a very close look at inventories. As a matter of principle, we at Infineon are extremely resilient in our setup, thanks to our manufacturing landscape. As a result, in some areas, we were able to help; however, the overlap in products between Infineon and Nigeria is rather limited.

Operator: Well, the geopolitical environment remains the big unknown in our business. There is no blueprint that we can draw on from the past. We simply have to follow developments day in, day out. Basically speaking, however, here again, Infineon is set up quite resiliently thanks to its manufacturing footprint, especially in Europe and Southeast Asia. We also have manufacturing partners in the United States and in China. However, having said that, this is a topic that time and again leads to new or can lead to new disruptions and on a daily basis can be quite eventful. We have a question that is quite similar that comes from Mrs. Konya Soglo from Bloomberg that has come through the live stream. It also relates to Nexperia. Jochen. Requests you have received to replace Nexperia chips. How far will you be able to do so?

[Translator 2]: Well, the geopolitical environment remains the big unknown in our business. There is no blueprint that we can draw on from the past. We simply have to follow developments day in, day out. Basically speaking, however, here again, Infineon is set up quite resiliently thanks to its manufacturing footprint, especially in Europe and Southeast Asia. We also have manufacturing partners in the United States and in China. However, having said that, this is a topic that time and again leads to new or can lead to new disruptions and on a daily basis can be quite eventful. We have a question that is quite similar that comes from Mrs. Konya Soglo from Bloomberg that has come through the live stream. It also relates to Nexperia. Jochen. Requests you have received to replace Nexperia chips. How far will you be able to do so?

Oh, sorry, the second question regarding geopolitical ramifications. Well, the geopolitical environment remains the bigger unknown in our business. There is no blueprint that we can draw on from the past. We simply have to follow developments day in, day out.

Basically speaking, however, here again, resilient in setup quite resiliently, thanks to its manufacturing footprint, especially in Europe and Southeast Asia. We also have manufacturing partners in the United States and in China. However, having said that, this is a topic that time and again leads to new or can lead to new disruptions on a daily basis.

Operator: Have done so? How long these processes are? Please could you answer in German. Thank you. Yes. As I just said, the overlap in our portfolio between Nexperia and Infineon, for the affected semiconductors, we mustn't forget that not all semiconductors of Nexperia were affected, is quite limited. Therefore, here and there we were able to help out a little bit. Basically, we also welcome the fact that apparently the situation has eased and auto manufacturing has taken up again. I think that also answers the second question from Mr. Frühauf that was asked through the stream and can therefore come back to the room. Mrs. Werner from Spiegel, please go ahead. Yes, I have a follow-up question on that.

[Translator 2]: Have done so? How long these processes are? Please could you answer in German. Thank you. Yes. As I just said, the overlap in our portfolio between Nexperia and Infineon, for the affected semiconductors, we mustn't forget that not all semiconductors of Nexperia were affected, is quite limited. Therefore, here and there we were able to help out a little bit. Basically, we also welcome the fact that apparently the situation has eased and auto manufacturing has taken up again. I think that also answers the second question from Mr. Frühauf that was asked through the stream and can therefore come back to the room. Mrs. Werner from Spiegel, please go ahead. Yes, I have a follow-up question on that.

Uh, it's quite limited and therefore, uh, here and there, we were able to help out a little bit, but.

Basically, we also welcome the fact that, apparently, the situation has eased in auto manufacturing.

Operator: In your speech, you said that you expect some automotive suppliers to reduce their inventories to a level that is no longer sustainable, and that doesn't really tie in very well. Now, haven't they learned their lesson since the Nexperia crisis? Well, this is the difficulty that we face, isn't it? Some companies in the automotive supply chain are in difficult economic conditions. You also have to look at how their capital is tied up due to their inventories. That is always an issue for them, and they always have to take a very close look at that.

[Translator 2]: In your speech, you said that you expect some automotive suppliers to reduce their inventories to a level that is no longer sustainable, and that doesn't really tie in very well. Now, haven't they learned their lesson since the Nexperia crisis? Well, this is the difficulty that we face, isn't it? Some companies in the automotive supply chain are in difficult economic conditions. You also have to look at how their capital is tied up due to their inventories. That is always an issue for them, and they always have to take a very close look at that.

Has taken up again. I think that that also answers the second question from Mr. F, that was asked through the stream and can therefore come back to the room. Mrs. Vienna from Spiegel, please go ahead. Yes, I have a follow-up question on that in your speech. You said that you expect some Automotive suppliers, uh, to reduce their inventories to a level that is no longer sustainable and that doesn't really tie in very well. Now, haven't they learned their lessons since the Xperia crisis? Well, this is the difficulty that we face, isn't it? Some companies in the automotive supply chain are in difficult, economic conditions? Um, the capital, we also have to look at uh how their capital is tied up due to their inventories. That is always an issue for them and they always have to take a very close. Look at that. I can all

Operator: I can only call on everyone to let your inventories fall below critical levels. Should there then be a reinvigoration of the market, that doesn't just have to come from the automotive industry, it could have come from other sectors as well, then potentially you can run into problems, the type of which we witnessed a couple of years ago. Thank you very much, Mr. Heer. I see you raised your hand. You are from Börsen-Zeitung. Please go ahead. Yes, I wanted to ask you that very question, but I have another question. You said that the auto suppliers are absolutely, have quite tight wallets. You say that of course they have to supply the automotive manufacturers and make sure that their inventories are good. Do you see any critical situations given this situation?

[Translator 2]: I can only call on everyone to let your inventories fall below critical levels. Should there then be a reinvigoration of the market, that doesn't just have to come from the automotive industry, it could have come from other sectors as well, then potentially you can run into problems, the type of which we witnessed a couple of years ago. Thank you very much, Mr. Heer. I see you raised your hand. You are from Börsen-Zeitung. Please go ahead. Yes, I wanted to ask you that very question, but I have another question. You said that the auto suppliers are absolutely, have quite tight wallets. You say that of course they have to supply the automotive manufacturers and make sure that their inventories are good. Do you see any critical situations given this situation?

Only call on everyone.

To let your inventory.

Operator: Now the capacity underutilization of your factories, what level is it at right now? How high were the idle costs in the past fiscal year? I will handle the first part of the question. Basically, it would be the most sensible thing if everyone involved in the value chain kept their inventories at such a level that they had a certain buffer. We do that. We have an inventory reach that is about 30 days higher than necessary at 150 days. Normally, we would have a reach of 120 days. We're talking about EUR 1 billion in capital that is tied up in this manner. Of course, it would make a lot of sense if the Tier 1 and the OEMs were dedicated in the same manner so that such buffers could be established.

[Translator 2]: Now the capacity underutilization of your factories, what level is it at right now? How high were the idle costs in the past fiscal year? I will handle the first part of the question. Basically, it would be the most sensible thing if everyone involved in the value chain kept their inventories at such a level that they had a certain buffer. We do that. We have an inventory reach that is about 30 days higher than necessary at 150 days. Normally, we would have a reach of 120 days. We're talking about EUR 1 billion in capital that is tied up in this manner. Of course, it would make a lot of sense if the Tier 1 and the OEMs were dedicated in the same manner so that such buffers could be established.

Fall below critical levels, because you should. Then there should be a reinvigoration of the market, and that doesn't just have to come from the automotive industry. It could come from other sectors as well. Then, potentially, you can run into problems of the type which we witnessed a couple of years ago. Thank you very much, Mr. H. I C, you raised your hand. Please go ahead. Yes, I wanted to ask you that very question, but I have another question: you said that the auto suppliers are quite tight with their wallets, but you say that, of course, they have to supply the automotive manufacturers and make sure that their inventories are good. Do you see any critical situations given this situation and the current capacity underutilization of your factories? What level is it at right now? And how high were the idle costs in the past fiscal year? I will handle the first part of the question, basic...

It would be the most sensible thing if everyone involved in the value chain kept their inventories at such a level that they had a certain buffer. We do that; we have an inventory reach that is about 30 days higher than necessary, at 150 days. Normally, we would...

We have a reach of 120 days. We're talking about a billion euros in capital that is tied up in this manner. Of course, it would make a lot of sense if the Tier 1 and the OEMs.

Operator: Which by the way, in Japan are absolutely customary. With respect to capacity underutilization and idle costs, I'd like to hand the floor to my colleagues. Just briefly on utilization. Right now, we are at about 80% capacity utilization. The forward-looking trend is improving, especially in the 300 mm sector, within the scope of the gradual improvement in the market. Yes, perhaps I can say something about the idle costs. Indeed, this is a very negative contribution to our profitability. In the past fiscal year, we're talking about just under EUR 1 billion in terms of idle costs corresponding to roughly 600 basis points. 6 percent point margin headwind. We now assume that we're going to go back to about EUR 800 million, which is still quite a lot higher than the level that we normally have in terms of cyclical idle costs.

[Translator 2]: Which by the way, in Japan are absolutely customary. With respect to capacity underutilization and idle costs, I'd like to hand the floor to my colleagues. Just briefly on utilization. Right now, we are at about 80% capacity utilization. The forward-looking trend is improving, especially in the 300 mm sector, within the scope of the gradual improvement in the market. Yes, perhaps I can say something about the idle costs. Indeed, this is a very negative contribution to our profitability. In the past fiscal year, we're talking about just under EUR 1 billion in terms of idle costs corresponding to roughly 600 basis points. 6 percent point margin headwind. We now assume that we're going to go back to about EUR 800 million, which is still quite a lot higher than the level that we normally have in terms of cyclical idle costs.

Dedicated in the same manner so that such buffers could be established, which, by the way, in Japan are absolutely customary with respect to capacity under-utilization and idle costs. I'd like to hand the floor to my colleague just briefly on utilization. Right now, we are at about 80% capacity utilization, and the forward-looking trend is improving, especially in the 300 mm sector.

Within the scope of the gradual improvement in the market, yes. Perhaps I can say something about the idle costs. Indeed.

Operator: This fiscal year, we're talking about 400 basis point headwind that are factored into the margin. Thank you. We would now like to switch topics. Mrs. Meyer, we'll get to you in a minute, but Mr. Frühauf has a follow-up question with respect to AI data centers, an issue that we are all concerned with and the growing market. The EUR 8 to 12 billion, how much is supposed to be assigned to Infineon? Well, the starting point right now is that Infineon is already in a leading position in this market for AI data centers. Roughly speaking, we're talking about, if you go look at along the entire power supply chain, 30% to 40% market share. Looking forward, we will do everything we can in order to stay in this range.

[Translator 2]: This fiscal year, we're talking about 400 basis point headwind that are factored into the margin. Thank you. We would now like to switch topics. Mrs. Meyer, we'll get to you in a minute, but Mr. Frühauf has a follow-up question with respect to AI data centers, an issue that we are all concerned with and the growing market. The EUR 8 to 12 billion, how much is supposed to be assigned to Infineon? Well, the starting point right now is that Infineon is already in a leading position in this market for AI data centers. Roughly speaking, we're talking about, if you go look at along the entire power supply chain, 30% to 40% market share. Looking forward, we will do everything we can in order to stay in this range.

This is a very negative contribution to our profitability. In the past fiscal year, we're talking about just under €1 billion in terms of idle costs, corresponding to roughly 600 basis points. So, a 6 percentage point margin headwind. We now assume that we're going to go back to about €800 million, which is still quite a lot higher than the level that we normally have in terms of cyclical idle costs. This fiscal year, we're talking about 400 basis points of headwind that are factored into the margin.

Thank you. We would now like to switch topics. I will get to you in a minute, but Mr. has a follow-up question with respect to AI data centers and an issue that we are all concerned with: the growing market and the €8 to €12 billion. How much is supposed to be assigned to Infineon? Well, the starting point right now is.

Infineon is already in a leading position in this market for AI, data centers.

Operator: I think that you can do the math as in terms of the potential for Infineon, depending on whether we're at 8 billion or 12 billion. That remains to be seen. Thank you very much. Mrs. Meyer, you had a question as well. We'll continue here in the studio. Yes, I'm Angela Meyer, The Market S&V. I would like to ask you about the idle costs as well. This is being stretched out over years right now. Did you do your math wrong? When is the upswing going to set in? The upswing that you planned with that is? In other words, when are we going to see a margin above 20% again?

[Translator 2]: I think that you can do the math as in terms of the potential for Infineon, depending on whether we're at 8 billion or 12 billion. That remains to be seen. Thank you very much. Mrs. Meyer, you had a question as well. We'll continue here in the studio. Yes, I'm Angela Meyer, The Market S&V. I would like to ask you about the idle costs as well. This is being stretched out over years right now. Did you do your math wrong? When is the upswing going to set in? The upswing that you planned with that is? In other words, when are we going to see a margin above 20% again?

Operator: Other competitors have a margin clearly above 20%, but you are still below that, and that's what you're planning for this next fiscal year indicates as well. Maybe you can give us some insight into that? Yes, thank you for that question. Let me begin with the fundamental categorization. It is important to look at the structural growth drivers and to believe in them, which we do. Mr. Hanebeck was very eloquent in his speech on addressing this. The factories are being completed right on time. We have a very good track record. Back then, when we constructed Villach for 300 mm, we were right on track. If you look at the Smart Power Fab in Dresden, once again, we're doing the right thing at the right time. Of course, we can't always manage to do that.

[Translator 2]: Other competitors have a margin clearly above 20%, but you are still below that, and that's what you're planning for this next fiscal year indicates as well. Maybe you can give us some insight into that? Yes, thank you for that question. Let me begin with the fundamental categorization. It is important to look at the structural growth drivers and to believe in them, which we do. Mr. Hanebeck was very eloquent in his speech on addressing this. The factories are being completed right on time. We have a very good track record. Back then, when we constructed Villach for 300 mm, we were right on track. If you look at the Smart Power Fab in Dresden, once again, we're doing the right thing at the right time. Of course, we can't always manage to do that.

Uh, looking forward, we will do everything we can in order to stay in this range. So I think that you can do the math in terms of the potential for Infineon, depending on whether we're at $8 billion or $12 billion. That remains to be seen. Thank you very much. Mrs. Mayor, you had a question as well. We'll continue here in the studio. Yes, I would like to, I'm Angela Maya, the market. As in V, I would like to ask you about the idle cost as well. This is being stretched out over years right now. Did you do your math wrong? When is the upswing going to set in? The upswing, like you planned with that, is in other words, when are we going to see a margin above 20% again? Other competitors have a margin clearly above 20%, but you are still below that, and that's what your planning for this next fiscal year indicates as well. Maybe you can give us some insight into that. Yes, thank you.

You for that question? Let me begin with the fundamental. Uh, categorization. It is important to look at the structural growth drivers and to believe in them which we do and Mr. Hanac, who was very eloquent in his speech on addressing. This, the factories, um, are being, uh, completed right on time. We have a very good track record back. Then when we constructed fill up for 300, mm, we were right on track.

Operator: You're right, we were more optimistic two years ago and three years ago with respect to our growth prospects. The topics surrounding the geopolitical situation and tariffs weren't known back then. What it may also be relevant in this respect is the following: We are growing this year. We are experiencing volume growth, but the growth is strongly driven by AI. We're adding capacities here. We're basically sold out in this area. We don't have any idle costs that are allocable to AI power supply, and the same applies to AI-defined microcontrollers. These tasks are outsourced, and that doesn't help us. That's a reason why our idle costs aren't reducing as fast as we would like them to. With respect to the margins, I already demonstrated in the impact that that was just the effect of the idle costs.

[Translator 2]: You're right, we were more optimistic two years ago and three years ago with respect to our growth prospects. The topics surrounding the geopolitical situation and tariffs weren't known back then. What it may also be relevant in this respect is the following: We are growing this year. We are experiencing volume growth, but the growth is strongly driven by AI. We're adding capacities here. We're basically sold out in this area. We don't have any idle costs that are allocable to AI power supply, and the same applies to AI-defined microcontrollers. These tasks are outsourced, and that doesn't help us. That's a reason why our idle costs aren't reducing as fast as we would like them to. With respect to the margins, I already demonstrated in the impact that that was just the effect of the idle costs.

If you look at the Smart power Fab interest in, once again, we're doing the right thing at the right time, of course, we can't always manage to do that but you're right we we're more optimistic 2 years ago and 3 years ago, with respect to our growth prospects. But the topics uh, surrounding the geopolitical situation and tariffs weren't known back then, what it may also be relevant in. This respect is the following, we are growing this year. We are experiencing volume growth, but the growth is strongly driven by AI, where, adding capacity here, we're basically sold out in this area. We don't have any Idol costs that uh, um, are allocable to AI power supply and the same applies to AI defined microcontrollers. These, uh, tasks are outsourced. And that doesn't help us. And that's a reason why our Idol costs aren't reducing as fast as we would like them. To, with respect to the margins are already demonstrated in the impact that that was just the effect of the idle costs on top of that. There's a positive effect.

Operator: On top of that, there's a positive effect from the fall through revenue generates a positive result. Of course, that would put us easily above the 20% that you mentioned. When is this going to happen? When? Well, the markets. When the markets play to our strengths, we depend to a certain degree on that. Final demand and inventory management are going in an opposite direction. That's a little difficult right now. The next question also deals with a growth trend that we described, the software-defined vehicle. Matthias Kempf from Blick from Switzerland asks, When will the Marvell Ethernet segment contribute to revenue, and what influence will it have on the Segment Result Margin in the future? Spence. Yes. Well, with respect to Marvell, in the middle of August, we acquired the company, so that was in 2025.

[Translator 2]: On top of that, there's a positive effect from the fall through revenue generates a positive result. Of course, that would put us easily above the 20% that you mentioned. When is this going to happen? When? Well, the markets. When the markets play to our strengths, we depend to a certain degree on that. Final demand and inventory management are going in an opposite direction. That's a little difficult right now. The next question also deals with a growth trend that we described, the software-defined vehicle. Matthias Kempf from Blick from Switzerland asks, When will the Marvell Ethernet segment contribute to revenue, and what influence will it have on the Segment Result Margin in the future? Spence. Yes. Well, with respect to Marvell, in the middle of August, we acquired the company, so that was in 2025.

From the fall through revenue, it generates a positive result. And of course, that would put us easily above the 20% that you mentioned.

Operator: There were no notable ramifications there. In 2026, we expect EUR 200 million in terms of revenue from this business, and this is a positive business in terms of profitability. It would make a positive contribution to the group margin. Strategically speaking, if I may add, this is extremely important because our expertise in automotive microcontrollers will be married with the technology for communication in the future. We expect wonderful synergies in terms of architecture, but also, of course, in terms of positioning our product with the customers. At a global level, I must add, Marvell already has a wonderful design win pipeline that it's built up over the years in the run-up to the acquisition, and we can build on that. Thank you very much. We're gonna come back to the room. Christof Rührmair from dpa, please go ahead.

[Translator 2]: There were no notable ramifications there. In 2026, we expect EUR 200 million in terms of revenue from this business, and this is a positive business in terms of profitability. It would make a positive contribution to the group margin. Strategically speaking, if I may add, this is extremely important because our expertise in automotive microcontrollers will be married with the technology for communication in the future. We expect wonderful synergies in terms of architecture, but also, of course, in terms of positioning our product with the customers. At a global level, I must add, Marvell already has a wonderful design win pipeline that it's built up over the years in the run-up to the acquisition, and we can build on that. Thank you very much. We're gonna come back to the room. Christof Rührmair from dpa, please go ahead.

And when is this going to happen? When getting back to this? Well, the markets, when the markets, uh, play to our strengths, we depend to a certain degree on that. So, um, final demand and inventory management are going um in an opposite direction. So that's a little difficult right now. The next question also deals with a growth Trend that we described the software defined vehicle MTS Kemp from Blick. From Switzerland asks, when will the Marvel isn't it segments contribute to revenue and what influence will it have on the segment result margin in the future spend? Yes. Well with respect to Marvel in the middle of August, we acquired the company so that was in 2025. There were no notable ramifications there in 2026. We expect 200 million euros in terms of revenue from this business. And this is a positive business in terms of profitability. So it would make a positive contribution to the group margin and strategically speaking. If I may add this extremely important,

Important because our expertise in automotive microcontrollers, uh,

will be married with the, um,

Technology for communication in the future. We expect wonderful synergies in terms of architecture, but also, of course, in terms of positioning our products with the customers and, um, at a global level. I must add Marvel already has a wonderful design win pipeline that it's built upon a number of DPS over.

Operator: Yes, thank you. I hope I didn't miss anything, but I can't remember what you might have said about the US tariffs, how much they might have cost you in the past quarter and fiscal year? Well, the direct tariffs that relate to semiconductors are not really that material. The tariffs that are really effective are the ones that are imposed by China for imports into the US, but they hardly affect us at all. The investigation, according to Section 232, the outcome of this investigation is entirely open. However, there are some indirect impacts, which you can see reflected in the sales volume figures in the United States, also experienced by European players, and this does have a tangible impact on us. Okay. We'll stay in the room. Mrs. Werner has another question. Please go ahead, madam.

[Translator 2]: Yes, thank you. I hope I didn't miss anything, but I can't remember what you might have said about the US tariffs, how much they might have cost you in the past quarter and fiscal year? Well, the direct tariffs that relate to semiconductors are not really that material. The tariffs that are really effective are the ones that are imposed by China for imports into the US, but they hardly affect us at all. The investigation, according to Section 232, the outcome of this investigation is entirely open. However, there are some indirect impacts, which you can see reflected in the sales volume figures in the United States, also experienced by European players, and this does have a tangible impact on us. Okay. We'll stay in the room. Mrs. Werner has another question. Please go ahead, madam.

Years in the run-up to the acquisition, and we can build on that. Thank you very much. We're going to come back to the room. Um, Christopher from DPA. Please go ahead. Yes, thank you. I hope I didn't miss anything, but I can't remember.

What you might have said about the U.S. tariffs.

Section 232.

The outcome of this investigation is entirely open. However, there are some indirect impacts.

Operator: I have a follow-up question with respect to the data centers that we touched on already. There are a number of wonderful announcements. In Germany, for instance, Google appears to be set to make a big investment. Is that sufficient from your point of view if you compare the EUR 300 billion that are being invested in the United States and China? Doesn't it seem to be a drop of water in the bucket? What do you believe is actually necessary in Europe to have a chance in this race? Well, the sums announced in Europe can only be a first step. Of course, you can break things down into AI infrastructure for learning. The inference. Of course, here, the necessary infrastructure costs are lower. The question is, however, shouldn't Europe become involved in the foundational models?

[Translator 2]: I have a follow-up question with respect to the data centers that we touched on already. There are a number of wonderful announcements. In Germany, for instance, Google appears to be set to make a big investment. Is that sufficient from your point of view if you compare the EUR 300 billion that are being invested in the United States and China? Doesn't it seem to be a drop of water in the bucket? What do you believe is actually necessary in Europe to have a chance in this race? Well, the sums announced in Europe can only be a first step. Of course, you can break things down into AI infrastructure for learning. The inference. Of course, here, the necessary infrastructure costs are lower. The question is, however, shouldn't Europe become involved in the foundational models?

Which you can see reflected in the sales volume figures in the United States. Um, also experienced by European players, and this does have a tangible impact on us. Okay, we'll stay in the room. This is Vienna; has another question. Please go ahead, Madam! I have a follow-up question with respect to the data centers that we touched on already. There are a number of wonderful announcements in Germany. For instance, Google appears to be set to make a big investment. But is that sufficient from your point of view? If you compare the $300 billion that are being invested in the United States and China?

It doesn't seem to be a drop, a drop of water in the bucket. What do you believe is actually necessary in Europe to have a chance in this? Well, the sums announced in Europe can only be a first step. Of course, you can break things down into infrastructure for learning.

And the inference.

Operator: I'm sorry for using English terms all the time. From where I stand, there is clearly a vector that means we're going to run into dependencies in Europe. Okay. Maybe Mr. Hofer, you have a follow-up question on that? Yes. No, not really. It doesn't really tie into that. Not quite. That's okay. Your fitness program scale up, I would like to have some more information about that. What effects has it had? If you look at headcount, it remained essentially flat. Maybe headcount increased through Marvell. Give us some insight into that, perhaps. Now in the United States, do you think you're at a disadvantage relative to domestic competitors? Because we do have a very strong wave of patriotism in that country. What is the situation in the United States? Thank you. Okay.

[Translator 2]: I'm sorry for using English terms all the time. From where I stand, there is clearly a vector that means we're going to run into dependencies in Europe. Okay. Maybe Mr. Hofer, you have a follow-up question on that? Yes. No, not really. It doesn't really tie into that. Not quite. That's okay. Your fitness program scale up, I would like to have some more information about that. What effects has it had? If you look at headcount, it remained essentially flat. Maybe headcount increased through Marvell. Give us some insight into that, perhaps. Now in the United States, do you think you're at a disadvantage relative to domestic competitors? Because we do have a very strong wave of patriotism in that country. What is the situation in the United States? Thank you. Okay.

Here, the necessary infrastructure costs are lower. The question is, however, shouldn't Europe become involved in the foundational models? I'm sorry for using English terms all the time.

From where I stand.

There is clearly a vector. Um, that means we're going to run into dependencies in Europe. Okay. Maybe Mr. Hoffer, you have a follow-up question on that? Yes? No, not really. It doesn't really tie into that. It's not quite... that's okay. Your fitness program scale-up, I would like to have some more information about that. What effects has it had? If you look at headcount, it remained essentially flat; maybe headcount increased through Marvel. Give us some insight into that perhaps. And now in the United States, do you think you're at a disadvantage relative to domestic competitors?

Operator: With respect to the last question, we don't feel anything from this at all. To the contrary, in California, if you look at the major AI infrastructure drivers, we are a supplier that is held in high esteem, in extremely high esteem, I must say. I believe that our esteem in AI and autos and in the future, increasingly, grid infrastructure is very good. Mr. Hofer, let me answer the question that you asked about the fitness program, Step Up. Step Up to us is a program which ensures improvements in competitiveness from a structural point of view. We are well on track. We're actually ahead of plan.

[Translator 2]: With respect to the last question, we don't feel anything from this at all. To the contrary, in California, if you look at the major AI infrastructure drivers, we are a supplier that is held in high esteem, in extremely high esteem, I must say. I believe that our esteem in AI and autos and in the future, increasingly, grid infrastructure is very good. Mr. Hofer, let me answer the question that you asked about the fitness program, Step Up. Step Up to us is a program which ensures improvements in competitiveness from a structural point of view. We are well on track. We're actually ahead of plan.

Because we do have a very strong wave of patriotism in that country. Um, what is the situation in the United States? Thank you. Okay, with respect to the last question, uh, we don't feel anything from this at all.

To the country in California. If you look at the major AI infrastructure drivers, we are a supplier that is held in extremely high esteem. I must say, what we are feeling is that in the geopolitical arena, the American value creation chains and the Chinese value chains.

We are slowly separating from each other, but I believe that.

RSD in AI and autos, and in the future, increasingly grid infrastructure is very good.

Operator: We are shooting for a sum in the high triple-digit million EUR range, which is going to be broken down into a number of different areas. The contribution that we achieved in the past fiscal year was 50% of this figure. We believe that two-thirds of this figure will be achieved in this fiscal year, and then that we'd be at 100% in 2027. A quarter of the measures relate to personnel. Three quarters are efficiencies, productivity improvements, digitization issues. You asked us about headcount. You're correct. On the one hand, we have reduced headcount, but new people have joined the Infineon family through the acquisition of Marvell, and some of the HR topics will be remanaged.

[Translator 2]: We are shooting for a sum in the high triple-digit million EUR range, which is going to be broken down into a number of different areas. The contribution that we achieved in the past fiscal year was 50% of this figure. We believe that two-thirds of this figure will be achieved in this fiscal year, and then that we'd be at 100% in 2027. A quarter of the measures relate to personnel. Three quarters are efficiencies, productivity improvements, digitization issues. You asked us about headcount. You're correct. On the one hand, we have reduced headcount, but new people have joined the Infineon family through the acquisition of Marvell, and some of the HR topics will be remanaged.

Let me answer the question that you asked about the fitness program "Step Up." Step Up to us is a program which ensures improvements in competitiveness from a structural point of view. We are well on track; we're actually ahead of plan. We are shooting for a sum in the high triple-digit million euro range, which is going to be broken down into a number of different areas. The contribution that we achieved in the last fiscal year was 50% of this figure. We believe that two-thirds of this figure will be achieved in this fiscal year, and then that would be at the 100% in 2027. A quarter of the measures relate to personnel; three-quarters are efficiencies and productivity.

Operator: We will move from high wage countries to best cost countries. We have to build up the business in those countries first. We will have some trickle-down effects in the next quarter. I think that the question asked by Mr. Frühauf in the stream has been answered as well. He is asking about further plans to reduce headcount after Belecke. No, we don't have any further plans. If we look at the market, we have to keep on monitoring the dynamics to determine whether our portfolio, our product portfolio or our fab portfolio is still fitting with our goals and where we want to be in the market. We don't have any further plans right now. Thank you. Mrs. Meyer, you raised your hand. Yes. I haven't heard anything about China today.

[Translator 2]: We will move from high wage countries to best cost countries. We have to build up the business in those countries first. We will have some trickle-down effects in the next quarter. I think that the question asked by Mr. Frühauf in the stream has been answered as well. He is asking about further plans to reduce headcount after Belecke. No, we don't have any further plans. If we look at the market, we have to keep on monitoring the dynamics to determine whether our portfolio, our product portfolio or our fab portfolio is still fitting with our goals and where we want to be in the market. We don't have any further plans right now. Thank you. Mrs. Meyer, you raised your hand. Yes. I haven't heard anything about China today.

Improvements digitization issues and you asked us about headcount headcount, you're correct on the 1 hand we have reduced headcount, but new people have joined the infinity and family through the acquisition of Marvel, and some of the HR topics will be remaned. We will move from a high weight countries to best cost countries, but we have to build up, um, the, uh, business in those countries first.

Operator: Perhaps you could tell us once again what the revenue share was in the past fiscal year and what it's going to be like in this coming fiscal year. I think it is probably going to drop in the auto market. Will this affect Infineon in China? Perhaps you can tell us something about the momentum of competition there. The Chinese chip manufacturers are on a strong upward trend, and Infineon, nevertheless, has always managed to command a very good position on the market. Do you think you can defend it? Mr. Urschitz will start, and then maybe Sven. Okay. With respect to the share of revenue generated in China, I'll start with greater China, including Mainland China and Taiwan. In the past fiscal year, we were at a 38% share of revenue.

[Translator 2]: Perhaps you could tell us once again what the revenue share was in the past fiscal year and what it's going to be like in this coming fiscal year. I think it is probably going to drop in the auto market. Will this affect Infineon in China? Perhaps you can tell us something about the momentum of competition there. The Chinese chip manufacturers are on a strong upward trend, and Infineon, nevertheless, has always managed to command a very good position on the market. Do you think you can defend it? Mr. Urschitz will start, and then maybe Sven. Okay. With respect to the share of revenue generated in China, I'll start with greater China, including Mainland China and Taiwan. In the past fiscal year, we were at a 38% share of revenue.

In the dynamics, uh, to determine whether our portfolio, our product portfolio or our Fab portfolio, uh, is still fitting, um, with our goals and where we want to be in the market. But we don't have any further plans right now. Thank you, Mrs. Mayor, you raised your hand. Yes, I haven't heard anything about China today. Perhaps you could tell us once again what the revenue uh, share was in the past fiscal year and what it's going to be like in this coming fiscal year. I think it is probably going to drop in the auto market. Will this affect Continent in China?

And perhaps you can tell us something about the momentum of competition there. The Chinese chip manufacturers are on a strong upward trend, and Infineon has always managed to command a very good position in the market. Do you think you can defend it? Mr. Ushers will start, and then maybe spend okay with respect to the share of revenue generated in China. I'll start with Greater China, including Mainland China and Taiwan. In the past fiscal year, we were at a 38% share of revenue, 29%.

Operator: 29% or 29 percentage points were achieved in mainland China. Relative to 2024 in China, we have grown in terms of revenue share. This is in part due to the Chinese leading role in decarbonization and digitization trends. Very exciting markets when it comes to automotive electronics. Maybe I can make a forward-looking statement here. What do we plan for the future in this respect? Well, on a large scale, the share of revenue is going to be maintained in this range in 2026 as well. Yes, perhaps there are two more points that we should raise here. The 29%, about one-third of it goes back into export as a car or a smartphone, for example. Here we believe that the value chains will continue to shift.

[Translator 2]: 29% or 29 percentage points were achieved in mainland China. Relative to 2024 in China, we have grown in terms of revenue share. This is in part due to the Chinese leading role in decarbonization and digitization trends. Very exciting markets when it comes to automotive electronics. Maybe I can make a forward-looking statement here. What do we plan for the future in this respect? Well, on a large scale, the share of revenue is going to be maintained in this range in 2026 as well. Yes, perhaps there are two more points that we should raise here. The 29%, about one-third of it goes back into export as a car or a smartphone, for example. Here we believe that the value chains will continue to shift.

29 percentage points were achieved in mainland China. So, relative to 2024 in China.

Uh, we have grown in terms of revenue share. This is in part due to the Chinese leading role in decarbonization and digitization trends—very exciting markets when it comes to automotive electronics. Maybe I can make a forward-looking statement here. What do we plan for the future in this respect? Well, on a large scale, the share of revenue.

Is it going to be maintained in this range in 2026 as well? Yes, and perhaps there are two more points that we should raise here: the 29%.

Uh, about one-third of it.

Operator: If you were to ask me today about a longer term or for a longer term outlook beyond 2026, well, then I would say that this share may drop somewhat in China. Of course, there are Chinese competitors, there are applications that have existed in the past as well, which achieve price points that make no sense for us whatsoever. That's why it's all the more important for us to look at topics like AI and regions such as the United States, Korea, and Japan, and to build up our business there. In the past, we've been very successful at doing this. However, it is quite clear that our corporate strategy in this respect now is to have the broadest possible footprint on a global basis. A good example of this is our automotive business, which has equal shares of the markets in Europe, Japan, and China.

[Translator 2]: If you were to ask me today about a longer term or for a longer term outlook beyond 2026, well, then I would say that this share may drop somewhat in China. Of course, there are Chinese competitors, there are applications that have existed in the past as well, which achieve price points that make no sense for us whatsoever. That's why it's all the more important for us to look at topics like AI and regions such as the United States, Korea, and Japan, and to build up our business there. In the past, we've been very successful at doing this. However, it is quite clear that our corporate strategy in this respect now is to have the broadest possible footprint on a global basis. A good example of this is our automotive business, which has equal shares of the markets in Europe, Japan, and China.

Same in an export, as a symbol goes back into exports smartphone as a car or a smartphone for example. So here, we believe that the value chains will continue to shift, if you were to ask me today about a longer term or for a longer term Outlook Beyond 2026. Well, then I would say that this share may drop somewhat in China. Of course, there are Chinese competitors. There are applications that have existed in the past as well. Which uh, achieve price points that make no sense for us whatsoever. That's why it's all the more important for us to look at topics, like Ai and regions such as the United States and Korea and Japan. And to build up our business,

Operator: It's a little bigger in Korea, and it's a little smaller in the US. Our goal is to have a good equilibrium over all the regions that we are active in. Thank you very much to the management team for the answers. Thank you, dear colleagues and coworkers, for all of the questions that you've asked. I don't see any more questions in the pipeline in the stream, and I don't see any people raising their hands here in the room. All I can say now is thank you for attending the annual press conference. We hope that you have a wonderful, strong, final dash towards the end of the year. The holiday season is around the corner. We're very happy to have hosted you here. Thank you for showing interest, and have a good day.

[Translator 2]: It's a little bigger in Korea, and it's a little smaller in the US. Our goal is to have a good equilibrium over all the regions that we are active in. Thank you very much to the management team for the answers. Thank you, dear colleagues and coworkers, for all of the questions that you've asked. I don't see any more questions in the pipeline in the stream, and I don't see any people raising their hands here in the room. All I can say now is thank you for attending the annual press conference. We hope that you have a wonderful, strong, final dash towards the end of the year. The holiday season is around the corner. We're very happy to have hosted you here. Thank you for showing interest, and have a good day.

In the past, we've been very successful at doing this. However, it is quite clear that our corporate strategy in this respect now is to have the broadest possible footprint on a global basis. A good example of this is our Automotive business, which has equal shares of the market in Europe, Japan, and China. It's a little bigger in Korea, and it's a little smaller in the USA. So, our goal is to have a good equilibrium over all the regions that we are active in. Thank you very much to the management team for the answers. Thank you, dear colleagues and co-workers, for all of the questions that you've asked. I don't see any more questions in the pipeline in the stream, and I don't see any people raising their hands here in the room. So, all I can say now is thank you for attending the annual press conference. We hope that you have a strong final.

Dash, uh, towards the end of the year. The holiday season is around the corner. Uh, we're very happy to have hosted you here. Thank you for showing interest, and have a good day.

Q4 2025 Infineon Technologies AG Earnings Call - Press Conference

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