Infineon Technologies Kept at Buy as BofA Notes Upcoming Fabrication Plant Opening - marketscreener.com

Infineon Technologies received a Buy rating from Bank of America, primarily due to the positive prospects from its upcoming new fabrication plant. This rating reflects market confidence in Infineon's ... Read original →

Infineon’s new wafer fab represents a strategic recalibration of the power semiconductor stack, not just capacity scaling. Its 300mm SiC line will force upstream equipment vendors to accelerate adoption of high-temperature ion implantation and epitaxy tools, while compelling automakers to redesign traction inverters. Amid EU Chips Act subsidies and U.S. CHIPS Act exclusivity clauses, the Dresden location reinforces a 'geopolitical de-risking' supply chain logic—though elevated European energy costs may shave 2–3 percentage points off gross margins. As STMicroelectronics and onsemi intensify their 800V platform battles, Infineon is effectively using capacity to lock in long-term Tier 1 contracts. Within 18 months, with CoolSiC and HybridPACK penetration exceeding 25% in EVs from BYD and NIO, pricing power in automotive power semiconductors will tilt toward Europe, potentially eroding the cost advantage of Taiwan, China-based foundries in IGBTs through widening technology gaps.