This brings the company in line with Europe’s largest chipmaker STMicroelectonics NV, which recently said it would not hit targets because of the same problems.
Infineon expects revenue for the quarter to grow about 12% to E1.82 billion ($ 2.4 billion) and earnings before interest and taxes to be approximately E211 million ($278.7 million), boosted by one-off licensing revenue of E118 million ($155.8 million).
Memory products have been particularly hard hit and Infineon said that while bit production has slightly increased, shipments have fallen due to anticipated increases in inventory levels. While revenue will show a 41% increase to E766 million ($1 billion) over last year’s level, and EBIT is likely to be E196 million ($288.8 million), the company said both figures had been hit by the decline of the dollar.
The automotive & industrial segment is expected to show revenue of approximately E452 million ($586.8 million), 35% up on last year’s figure, and an EBIT of approximately E50 million ($66 million).
Wireline Communications is expected to show revenue flat at approximately E106 million ($140.1 million), and a loss at the EBIT level of approximately E29 million ($38.3 million).
The secure mobile solutions unit is forecast to show revenue growth of 4.2% to approximately E439 million ($580.4 million) and an EBIT of approximately E2 million ($2.6 million).
