INFINEON

Analysis before buying or selling Infineon shares

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In this article we provide information that you will undoubtedly require for your analyses of the Infineon share price. In fact to successfully complete these analyses you should possess a thorough basic knowledge of this company as well as its activities and principal sources of revenue, its major direct competitors and recent strategic partnerships. We will also explain the factors that should be taken into consideration for your fundamental analysis as well as the major strengths and weaknesses of this company against its direct competitors.

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ISIN code: DE0006231004

Ticker: ETR: IFX

Index or market: DAX

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Elements to consider before selling or buying Infineon shares

Analysis N°1

Of course, you should attentively follow the semi-conductor market in general with the rise and fall in demand from the IT and high tech industries.

Analysis N°2

It is also important to monitor the operations completed by this company with the aim of continuing its expansion on an international level, notably on the emerging markets.

Analysis N°3

We would of course monitor the strategic alliances that this group implements with other companies, whether these relate to distribution and supply agreements or research and development.

Analysis N°4

Competition in this activity sector is highly present and very aggressive so it is of course extremely important to closely follow the news and events relating to the principal adversaries of the Infineon Group.

Analysis N°5

It can of course also be singularly advantageous to monitor investments undertaken in research and development by this group where innovation is at the core of this strategy.

Analysis N°6

Finally you should also pay careful attention and monitor the financial publications of this group with the annual and quarterly financial results remembering of course to compare these to the analysts’ expectations and the objectives fixed in the company’s strategic development plans.

Analysis before buying or selling Infineon shares

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General presentation of Infineon

The Infineon Technologies AG Group is currently one of the world leaders in the manufacture of semi-conductors. It produces power semi-conductors, sensors, microcontrollers, mixed signal analogical and digital integrated circuits, covert semi-conductor modules, switches, interface integrated circuits, motor controlled integrated circuits, RF power transistors, voltage regulators and also electronic security components.

To best understand the activities of the Infineon Group we can divide them according to the turnover generated by each sector and how it is done so:

The automobile sector generates 41.4% of this group’s revenue through the semi-conductors used in the automobile industry and the memory cards for specific applications in this industry as well as IT and electronics for the general public.
Energy supply and sensor systems generate 30.9% of this company’s turnover with semi-conductors for energy efficient power supplies, mobile telephones, mobile telecommunications network infrastructures, man-machine interactions and applications for particular uses.
Industrial power control represents 16.4% of this group’s turnover with semi-conductors for the conversion of electrical energy for small, medium and high power applications in the production, transmission, storage and use of electrical energy.
Smart security systems generate 11.1% of this company’s revenue with semi-conductors for network devices and applications based on government cards and documents, microcontrollers for industrial, leisure and domestic applications, and components for smart systems as well as various customer assistance systems.

On the geographical level, 12.3% of this group’s turnover is generated in Germany and 14.8% in other European countries and the African Middle East, 37.1% in China, 15% in Pacific Asia, 9.9% in the United States, 8.9% in Japan and 2% in America.

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The major competitors of Infineon

We shall now examine the major competitors of the Infineon Group in its activity sector which are the major players in the semi-conductor sector.

Samsung

The Samsung Group is a Korean conglomerate that reunites a number of companies notably specialising in electronics and semiconductors. This means of course that it is a serious competitor of Infineon.

STMicroelectronics

This company is a French and Italian multinational with its registered office based in Switzerland. It develops, produces and sells microchips and semi-conductors and is one of the largest companies in this activity sector worldwide. It should also be noted that this group has been reintegrated in the composition of the CAC40 since 2017 after being excluded for four years.

Philips

Finally, the last major competitor of Infineon Technologies is Philips which is a Dutch company based in Amsterdam specialised in technology. It is in fact one of the largest groups worldwide in certain sectors and also produces semi-conductors.

The major partners of Infineon

We shall now study strategic partnerships that the Infineon Group has implemented recently which have enabled the company to increase profitability or develop new products. These strategic alliances developed by this company are frequent and noteworthy, here are two particular examples:

Synopsys

The first partnership that we shall examine here was implemented in 2019 by the Infineon Group with the Synopsys Company. This partnership notably concerns the development of solutions based on AI with its future automobile microcontrollers. This partnership is also based on the belief that AI, or Artificial Intelligence, and neuron networks will become a key factor in the development of vehicles that are safer, more intelligent and more respectful of the environment. Therefore, and due to the implementation of this alliance, the new generation Aurix microcontrollers of Infineon have integrated a new artificial intelligence accelerator called a Parallel Processing Unit or PPU that uses the IP of the Synopsys DesignWare ARC EV processor.

Cree

A little before that, in 2018, Infineon Technologies implemented a highly advantageous strategic partnership with the American company Cree. This partnership had the objective of securing the supply of silicon carbide wafers. It should be remembered here that this sector is particularly promising and is causing a real boost in growth for all manufacturers of high powered electronic components.

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The factors in favour of a rise in the Infineon share price:

To conclude our article on the Infineon Company and its share price, and as indicated in our introduction, we will now examine the major strengths and weaknesses of this group. These advantages and disadvantages are in fact factors that will influence the ability of this company to develop and grow over the coming years.

Firstly, Infineon offers the major advantage of having succeeded in a significant geographical expansion with a range of its products available in numerous countries around the world.
The capacities of this group in terms of research and development are also valuable advantages that enable the company to differentiate itself from competitors with its innovative products.
Of course the position of this group as one of the leaders in this market is also a real advantage that should be taken into account.
Finally the last major advantage of this company concerns its size and work force. This company benefits from a significant income and currently employs over 25,000 people through its various subsidiaries.

The factors in favour of a drop in the Infineon share price:

As you are probably aware, the Infineon Group also has its weak points and there are several factors that could be problematic related to its competitors in this activity sector. The company’s principal weak points are as follows:

Firstly, we would note that the Infineon Group displays a strong dependence on third party entrepreneurs. A fall in demand from this sector or the loss of a major contract could therefore exert a significant negative influence on its profitability.
Finally, the second and last significant disadvantage of this company relates to its competitors which are not only numerous, they are also aggressive in nature. We note for example that Infineon has relatively few clients compared to its adversaries.
Of course, the factors that we have cited here that currently constitute the strengths and weaknesses of the group may change over time and it is therefore important to implement a new analysis before using this information in your trading strategies.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the current major shareholders in the Infineon Group?

The Infineon Group currently has its capital divided among various major shareholders including Norges Bank Investment Management with a 4.86% shareholding, Allianz Global Investors holds 4.82% of the shares, Dodge & Cox owns 4.51%, DWS Investment with 3.70%, Templeton Global Advisors with a 3.69% shareholding, The Vanguard Group owns 2.86%, FIL Investment Advisors with 2.01%, Capital Research & Management World owns 1.92%, Harding Loevner owns 1.79% and DWS Investments has a 1.67% shareholding.

What are the major subsidiaries owned by the Infineon Group?

To develop these activities in different markets around the world the Infineon Group has created various subsidiaries over the years that it is important to know about. These include Infineon Technologies Austria, Infineon Technologies Canada, Infineon Technologies United Kingdom, Infineon Technologies Norway, Infineon Technologies and Infineon Technologies Asia Pacific Pte Ltd.

Where and how to analyse the Infineon company share price in real time?

To complete comprehensive analyses of the Infineon company share price you should notably use a technical analysis. This consists of examining the movements of the share price on stock market charts over a given period using technical indicators. These indicators will display calculated details on the share price trends including the strength and volatility. Of course for this you will need to use the innovative and personalised charts such as those provided by online brokers.

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