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U.S. Tariff Uncertainty Weighs On Infineon’s Revenue Outlook

Alice by Alice
2025-05-10
in News
U.S. Tariff Uncertainty Weighs On Infineon’s Revenue Outlook
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German chipmaker Infineon Technologies on Thursday reported steady orders but cut its full-year revenue outlook due to uncertainty over the global tariff dispute.

U.S. President Donald Trump said tariffs on semiconductor chips would start at “25% or more” and rise sharply over the course of a year, but did not specify when they would take effect, leaving chipmakers in a quandary.

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“Given that order volumes still do not show any signs of slowing down, we can only estimate the impact of the tariff dispute,” Chief Executive Officer Jochen Hanebeck said in a statement.

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He added that the company had cut its expected revenue by 10% for the final quarter of its fiscal year, which ends Sept. 30.

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Infineon’s revenue for fiscal 2024 is 15 billion euros ($17 billion). Previously, the company expected revenue to be flat or slightly up this year.

“Without the write-down, the forecast would remain largely unchanged,” Infineon said, adding that new exchange rate assumptions also weighed on its outlook.

Infineon now expects operating margins to be in the mid-teens, compared with the previous range of mid-teens to high-teens.

($1 = 0.8860 euros)

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