BERLIN: German chipmaker Infineon Technologies is planning a 50% hike in investments next year, boosting its shares as it looks to benefit from soaring demand and a global shortage in semiconductors.
In a release issued ahead of an investor day, Infineon said on Tuesday it would invest around 2.4 billion euros ($2.8 billion) in 2022, up from about 1.6 billion euros this year.
It said the spending would be on property, plant and equipment, without giving further details.
The company also forecast revenue would grow by a mid-teens percentage next year, with a segment result margin - a measure of operational profitability - of around 20%, up from a 2021 target for 18%.
It confirmed guidance for 2021 revenues of 11 billion euros.
"CO2 reduction and the desire to make things intelligent and securely connected are major trends across all industries," said Chief Executive Reinhard Ploss. "2022 is shaping up to be a strong year."
Infineon shares jumped 2% at the market open and were up 0.8% to 34.23 euros at 0810 GMT.
Ploss has recently said he expects significant price increases for semiconductors as Infineon passes on higher costs to customers, noting that the industry is prepared to pay "astronomical prices".
Infineon has blamed a lack of investment in new capacity by its manufacturing partners for tightness in semiconductor markets as demand rebounded after coronavirus lockdowns, disrupting chip supplies especially in the car industry.
Contract chipmakers have invested chiefly in production of higher-margin processors used in devices like smartphones, leaving existing plants unable to meet demand for the older chips used in cars.
But Infineon, the leading supplier to the auto industry, has itself faced problems meeting delivery commitments after a winter storm knocked out a plant in the United States and lockdowns disrupted operations in Malaysia.
The Munich-based firm opened a 1.6 billion euro plant in Austria last month, boosting its ability to supply power chips for cars, data centres and renewable power. ($1 = 0.8622 euros) - Reuters