Infineon: Integrated acquisitions are a major trend in the semiconductor industry
According to a report by the World Semiconductor Trade Statistics Society (WSTS) in November 2015, the total global semiconductor market in 2015 is expected to remain the same as in 2014, reaching a scale of $336 billion. Meanwhile, research institutions such as IHS, Gartner, and IC Insights generally predict a growth of approximately 3% in 2016. As a global market leader in automotive electronics, power semiconductors, and smart card chips, Infineon achieved outstanding performance in the 2015 fiscal year. Adding the acquired US international rectifier business, Infineon reported a revenue of 5.8 billion euros in the 2015 fiscal year, a year-on-year increase of 34%, far exceeding the industry average. In addition to the benefits brought by the successful acquisition of international rectifiers, the acquisition of all equity in South Korean company LS Power Semitech, the acquisition of equity in PCB manufacturer Schweizer Electronic and TTTech, which focuses on driving assistance systems, and the cooperation with Panasonic on future gallium nitride technology have further strengthened the company's strength through strategic acquisitions and collaborative projects. Meanwhile, Infineon's performance has also maintained sustainable organic growth. The four major business units of Infineon, including automotive electronics, power management and diversified markets, industrial power control, smart cards, and safety, have all seen an increase in performance, mainly due to the following growth points: firstly, Infineon has maintained strong competitiveness in the automotive market in various regions, and the electrification of automobiles has further improved. Infineon's innovative semiconductor products are playing an increasingly important role in improving driving safety, comfort, and carbon dioxide emissions reduction; Secondly, the development of renewable energy sources such as wind and solar power, as well as the high-speed train, commercial, and agricultural vehicle markets, especially China's infrastructure construction, has further increased the demand for Infineon power semiconductors; Thirdly, the continuous expansion of the smartphone and tablet markets has driven the construction of mobile infrastructure globally, especially in China. For example, the vigorous development of China's 4G network and the extensive construction of 4G base stations have greatly increased the demand for Infineon power management chips and high-performance silicon microphone fans; Fourthly, bank cards in China and the United States are undergoing a significant transition from magnetic stripe cards to financial IC cards. The addition of mobile payment functions to smartphones and watches, as well as the widespread recognition of the importance of security in Industry 4.0 and the Internet of Vehicles, have greatly promoted the business growth of Infineon's security chips In 2016, Infineon remained optimistic about its continued growth in performance. In the automotive industry, intelligent, environmentally friendly, and safe vehicles are key development trends, such as advanced driving assistance systems, autonomous driving, connected cars, and electric vehicles; In the fields of renewable energy, such as wind energy and photovoltaics, especially in the Chinese and American markets, China's industrial infrastructure, as well as household appliances and servers, including intelligent power modules, power management and other power devices, their importance has become increasingly prominent; The security requirements in the Internet of Things environment are increasingly evident. These aspects are significant growth points for Infineon products. In addition, Infineon will continue to pay attention to and support emerging industries in China, including smart cars, smart homes, wearable devices, robots, and low-speed electric vehicles. With the support of IoT platforms and technologies, many industries are upgrading towards intelligence, and even undergoing a complete transformation. Emerging industries and opportunities are constantly emerging. With its global leadership and technology in automotive electronics, power semiconductors, and security chips, Infineon will make positive contributions to the intelligence, high energy efficiency, and safety of these emerging industries, such as advanced driving assistance systems, radar technology, and security protection for connected cars that are essential for achieving automotive intelligence. The development of emerging industries not only creates opportunities, but also brings some challenges, including competition for local talents in the market, further exploration and improvement of industry standards, laws and regulations, and business models, such as the Internet of Vehicles and autonomous driving. Infineon will strengthen cooperation with local enterprises, build an ecosystem, and work together with upstream and downstream of the industrial chain to tackle challenges and expand the market. Based on the company's future development strategy and in order to better serve global customers, Infineon successfully completed its strategic acquisition of International Rectifiers in January 2015. This not only further consolidated the company's leading position in the power semiconductor field, but also enhanced its advanced knowledge in semiconductor materials (i.e. gallium nitride). At the same time, this acquisition also brings a new business model to the company, especially for the Chinese market, enabling Infineon to more flexibly and multi-channel serve the constantly changing local market demands. Infineon believes that integration and acquisition is a major trend in the semiconductor industry. On the one hand, mergers and acquisitions are driven by different strategies of different companies; On the other hand, the semiconductor industry is becoming increasingly mature and its development speed is slowing down. At the same time, China is vigorously developing the semiconductor industry, and cross-border mergers and acquisitions are an important means of implementing this strategy, which has further accelerated the global semiconductor industry merger and acquisition wave to a large extent. Infineon will keep pace with the times, seize development trends, and continue to focus on high-quality assets in the market, including the automotive industry, safety industry, and power semiconductor devices. At the same time, the company also hopes to further enhance its capabilities in controllers and sensors. In addition, short-range and long-range communication are also areas that Infineon believes have potential for growth, such as how to better integrate LTE technology and IoT technology.
