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Annual Report 2025
Infineon Technologies AG
www.infineon.com
Contents
2 Infineon key data
3 Infineon at a glance
4 Management Board and
Supervisory Board
4 Letter to shareholders
10 The Management Board
12 Report of the Supervisory Board
to the Annual General Meeting
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Further information
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Chart reference
(Chart overview on p. 188)
Reference
(List of references on p. 90)
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19 Combined Management Report
20 Business model
27 Group strategy
35 Research and development
39 Internal management system
42 Review of the semiconductor
industry
44 2025 fiscal year
61 Infineon on the capital market
64 Overall statement on Infineon’s
financial condition
65 Report on outlook, risk and
opportunity
82 Infineon Technologies AG
86 Corporate Governance
90 List of references
91 Consolidated Financial Statements
92 Consolidated Statement of Profit or Loss
93 Consolidated Statement of
Comprehensive Income
94 Consolidated Statement of
Financial Position
95 Consolidated Statement of Cash Flows
96 Consolidated Statement of
Changes in Equity
98 Notes to the Consolidated
Financial Statements
175 Further information
175 Responsibility Statement by
the Management Board
176 Independent Auditor’s Report
184 Applications and product range
188 Chart overview
188 List of abbreviations
189 Financial calendar 2026
190 Imprint
Infineon | Annual Report 2025
1
Infineon key data
Fiscal year from
1 October to 30 September
2025
2024
€ in
millions
in % of
revenue
€ in
millions
in % of
revenue
Change
in % 1
Revenue by segment
14,662
14,955
(2)
Automotive 2
7,402
50
7,716
52
(4)
Green Industrial Power
1,631
11
1,934
13
(16)
Power & Sensor Systems 2
4,208
29
3,795
25
11
Connected Secure Systems
1,418
10
1,506
10
(6)
Other Operating Segments
3
0
4
0
(25)
Corporate and Eliminations
–
–
–
–
–
Selected results of
operations key data
Gross profit/Gross margin 3
5,753
39.2
6,245
41.8
(8)
Research and
development expenses 3
(2,227)
15.2
(2,161)
14.5
3
Selling, general and
administrative expenses
(1,582)
10.8
(1,554)
10.4
2
Operating profit
1,515
10.3
2,190
14.6
(31)
Profit (loss) for the period
1,015
6.9
1,301
8.7
(22)
Segment Result/
Segment Result Margin
2,560
17.5
3,105
20.8
(18)
Basic earnings per share in €
0.77
0.98
(21)
Diluted earnings per share in €
0.76
0.97
(22)
Adjusted earnings per share
in € from continuing
operations – diluted 4
1.39
1.87
(26)
Dividend per share in € 5
0.35
0.35
–
Fiscal year from
1 October to 30 September
2025
2024
€ in
millions
€ in
millions
Change
in % 1
Selected liquidity key data
Cash flows from operating activities from continuing operations
3,178
3,541
(10)
Cash flows from investing activities
(4,574)
(2,167)
–––
Cash flows from financing activities
920
(615)
+++
Free Cash Flow 6
(1,051)
23
–––
Adjusted Free Cash Flow 6
1,803
1,690
7
Adjusted Free Cash Flow as percentage of revenue 6
12.3%
11.3%
100 bp
Depreciation and amortization
1,917
1,865
3
Investments 6
2,094
2,719
(23)
€ in millions (unless otherwise stated)
As of 30 Sep-
tember 2025
As of 30 Sep-
tember 2024
Change
in % 1
Gross cash position 6
2,102
2,201
(4)
Net cash position 6
(4,727)
(2,610)
81
Selected financial condition key data
Total assets
30,470
28,639
6
Total equity
17,051
17,219
(1)
Equity ratio 7
56.0%
60.1%
(410) bp
Return on Capital Employed (RoCE) 6
4.9%
8.5%
(360) bp
Market capitalization 8
43,231
40,872
6
Infineon employees (in total figures)
57,077
58,065
(2)
1 Percentage changes of more than +/– 99.5% are shown as “+++” or “–––” in the tables in the Annual Report.
2 Figures for the previous year have been adjusted (for details, see note 29,
p. 163 ff., to the Consolidated Financial Statements).
3 Figures for the previous year have been adjusted (for details, see note 1,
p. 98 f., to the Consolidated Financial Statements).
4 See the chapter “Review of results of operations” for definition,
p. 54 f.
5 A dividend per share of €0.35 for the 2025 fiscal year will be proposed to the Annual General Meeting on 19 February 2026.
6 See the chapter “Internal management system” for definition,
p. 39 ff.
7 Equity ratio = Total equity/Total assets.
8 The calculation is based on unrounded figures. Own shares were not taken into consideration for the calculation of market capitalization.
Infineon | Annual Report 2025
2
Further information
Consolidated Financial Statements
Combined Management Report
Management Board and Supervisory Board
Dividend of
35 cents
per share planned
Revenue
€14.662 bn
– 2%
Segment Result
and Margin
€2.560 bn
17.5%
57,077
employees
Infineon
at a glance
Infineon Technologies AG is a world
leader in semiconductor solutions
that make life easier, safer and greener.
Microelectronics from Infineon is
the key to a better future. In the 2025
fiscal year (ending 30 September),
the Group reported revenue of
approximately €14.7 billion with
some 57,000 employees worldwide.
Infineon is listed on the Frankfurt
Stock Exchange (ticker symbol: IFX)
and in the USA on the over-the-counter
market OTCQX International Premier
(ticker symbol: IFNNY).
3
Further information
Consolidated Financial Statements
Combined Management Report
Management Board and Supervisory Board
Infineon | Annual Report 2025
The 2025 fiscal year was a very special year for Infineon. Twenty-five years ago, on
13 March 2000, we went public as an independent company. Looking back, as a
company we have achieved major milestones, expanded our business, strengthened
our profitability, successfully navigated challenging times, and continually evolved.
Infineon is a story of transformation and success. Our capacity for innovation,
combined with our ability to adapt to changing markets and environments, has made
us a leading provider of outstanding semiconductor solutions.
Over the years, we have significantly expanded our portfolio of capabilities beyond our
traditional stronghold in power semiconductors, which accounted for approximately
35 percent of our revenue in the 2025 fiscal year. We are exceptionally well positioned
in this area, offering an unrivaled breadth across all three key technologies: silicon,
silicon carbide, and gallium nitride. Approximately 30 percent of our revenue is
generated from analog semiconductors and sensors. Examples include drivers, DC
converters, intelligent power switches, our broad sensor portfolio, and memory for
targeted applications. The remaining roughly 35 percent of our products fall under
the Control & Connectivity category. This encompasses our microcontrollers for auto-
motive, security and industrial applications, along with a wide spectrum of wireless
and wired data transmission products. With this extensive portfolio and our “from
Product to System” approach, we differentiate ourselves from competitors and deliver
tangible value to our customers.
Letter to shareholders
Neubiberg, November 2025
Jochen Hanebeck
Chief Executive Officer
4
Further information
Consolidated Financial Statements
Combined Management Report
Letter to shareholders
Management Board and Supervisory Board
To further raise awareness of the economic and societal relevance of semiconductors
and Infineon’s role, we used our anniversary year as inspiration to launch a commu-
nications campaign. Under the motto “Matters to me,” customers, employees, and
partners from around the world shared what Infineon’s semiconductors mean to them
and the real-world impact our solutions have. Our campaign attracted considerable
attention and positive feedback, further reinforcing our stakeholders’ identification
with Infineon and our corporate vision: We are driving decarbonization and digitaliza-
tion decisively forward with our partners.
The 2025 fiscal year: Expectations met despite
a challenging environment
Infineon faced a highly challenging environment in the 2025 fiscal year. The downturn
that began in our relevant semiconductor markets in the previous year initially
continued. As the 2025 fiscal year progressed, the markets began a gradual recovery.
In the course of the prolonged cyclical correction, which affected various end markets
at different times, semiconductor inventories along the supply chain reached
their customary levels in most markets. Macroeconomic and geopolitical turbulence,
however, weighed on demand and stood in the way of a broader recovery. Tariff
impacts burdened the global economy and, in turn, our markets. These challenges
were compounded by the weakness of the U.S. dollar against the euro.
Despite this challenging environment, our business performance was solid. Our
business model remains robust, and our financial results reflect this stability: Revenue
of €14.6 billion, a Segment Result Margin of 17.5 percent, and adjusted Free Cash
Flow of €1.8 billion – equivalent to 12.3 percent of revenue. All three figures are in line
with the lower end of the target range defined for cyclical downturns in our Target
Operating Model. In a world full of uncertainty, Infineon remains on course.
We want our shareholders to benefit appropriately from this success. At the upcoming
Annual General Meeting, we will therefore propose a dividend of €0.35 per share, the
same as the previous year’s dividend. We are thereby following our dividend policy
geared toward consistency, while preserving Infineon’s financial flexibility for future
investments. Both decarbonization and digitalization continue to fuel structurally
increasing demand for semiconductors. These long-term growth drivers form the
foundation of our business and will continue to present Infineon with ample oppor-
tunities in the future.
Mobility of the future: Software-defined vehicles
are reshaping the automotive industry
The automotive industry is currently experiencing what may be the most profound
transformation in its history. In addition to electromobility – an area Infineon has
significantly helped shape for years – software-defined vehicles are opening the door
to a new era. Software is becoming the core of the vehicle. Above all else, this delivers
greater flexibility. New automated driving features and enhanced safety functions
can now be delivered directly to the vehicle. Errors can be resolved without a visit to
the repair shop. “Over-the-air” software updates, similar to those used on smartphones,
make this possible.
The transition to software-defined vehicles however is a complex process. Conven-
tional electrical and electronic vehicle architectures, with numerous control units
distributed throughout the vehicle, can no longer meet current requirements. This
is why the automotive industry is moving toward a more centralized architecture.
Vehicles are divided into physical zones, each managed by a high-performance local
controller. Software-defined vehicles are changing system architectures as well as
the industry’s development models and value chains. Infineon plays a key role in this
transformation. We are working closely with strong customers and partners world-
wide to advance the development of software-defined vehicles.
Infineon | Annual Report 2025
5
Further information
Consolidated Financial Statements
Combined Management Report
Letter to shareholders
Management Board and Supervisory Board
In addition to our system expertise, our global leadership in automotive semiconduc-
tors gives us a clear advantage – one we have consistently expanded in recent years.
A key contributor to this growth has been our rapidly expanding automotive micro-
controller business. Our specialized microcontrollers are playing an increasingly vital
role in controlling several critical vehicle functions in software-defined architectures.
We are continuing to strengthen our position as the world’s leading provider of micro
controllers for the automotive industry. In August 2025, we completed the acquisition
of the Automotive Ethernet business of U.S.-based Marvell Technology for a purchase
price of US$2.5 billion – marking a strategically important milestone for Infineon.
Ethernet is a key enabling technology for software-defined vehicles, allowing for the
fast, reliable, and secure transmission of very large volumes of data. Ethernet techno
logy is highly complementary to our existing product portfolio. When combined with
our AURIX™ microcontroller family, it enables us to deliver a comprehensive portfolio
that integrates both communication solutions and real-time control.
Ethernet is also essential for promising applications in the Internet of Things (IoT),
particularly for emerging robotic technologies such as humanoid robots. By adding
Ethernet technology to our broad product portfolio, we aim to unlock new, growth-
oriented use cases in the field of “physical artificial intelligence” and offer our customers
even more complete system solutions.
Energy transition: The global transformation toward
a sustainable energy system continues
Alongside the mobility of the future, the global energy transition remains a central
pillar of our efforts. Decarbonization is one of the most pressing challenges of our time,
requiring a fundamental shift in how we generate, transport, store, and consume
energy. Global demand for energy and its affordable, sustainable production is sharply
rising. This trend is increasingly fueled by data centers supporting artificial intelli-
gence – a clear example of the close link between digitalization and decarbonization.
The U.S. administration’s withdrawal from the Paris Climate Agreement and related
U.S. legislation, however, are slowing the U.S. expansion of renewable energy.
The global transformation toward a sustainable energy system, on the other hand,
continues. In many regions of the world, renewables have become not only the
cleanest but also the most cost-effective form of power generation. Infineon’s high-
performance semiconductor solutions play a critical role in both solar and wind
power systems, and we work closely with many key industry players in this space.
The expansion of grid infrastructure is particularly opening up new business opportu-
nities for us. Investments in power grids are accelerating, for instance, in China and
through government-backed initiatives in Europe. They include energy transmission,
distribution, and storage, as well as uninterruptible power supply systems. Battery
storage systems are one example where our technologies are used. In tomorrow’s
power grids, semiconductor-based transformers, known as Solid-State Transformers
(SSTs), will play a key role in delivering more efficient and flexible energy distribution.
Artificial intelligence is driving demand for our power supply
solutions for high-performance data centers
Today, powering AI data centers, which face growing demands for performance,
efficiency, and reliability, is already a rapidly expanding market for Infineon. AI is
increasingly permeating all areas of life. This requires computing power on a scale
that far exceeds the capabilities of conventional data centers. Demand is rising
rapidly and fueling the buildout of specialized AI data centers worldwide. AI data
centers today already contain more than 100,000 individual AI chips. No later than
2030, AI data centers are expected to require power capacities of one megawatt
or more per IT rack, making even more powerful power supply solutions with higher
energy efficiency indispensable.
Infineon | Annual Report 2025
6
Further information
Consolidated Financial Statements
Combined Management Report
Letter to shareholders
Management Board and Supervisory Board
Infineon is at the forefront of tackling these challenges. We support the entire power
conversion chain in data centers, from the power grid to the AI processor, and benefit
from strong demand. At the same time, we are rapidly expanding our portfolio of
efficient, scalable solutions. This ensures we can continue to meet the evolving needs
of next-generation AI data centers. An example is our collaboration with NVIDIA to
develop the industry’s first 800-volt power supply architecture for AI data centers. This
new system architecture significantly enhances energy-efficient power distribution
within the data center and enables voltage conversion directly at the AI chip level.
In the 2025 fiscal year, we nearly tripled the revenue from our power supply solutions
for AI data centers to over €700 million. We are significantly raising our revenue
forecast for the 2026 fiscal year from approximately €1 billion to around €1.5 billion.
Looking ahead, we continue to see strong growth potential in this area and expect
the addressable market for Infineon to grow to between €8 billion and €12 billion by
the end of the decade.
We intend to shape this market with our solutions in the years ahead.
Internet of Things: We are shaping the future of intelligent systems
An increasing number of devices are being intelligently networked in the Internet of
Things (IoT), whether in the industrial sector, mobility, or smart homes. As a result, AI
is increasingly extending beyond centralized cloud systems. Edge AI – the intelligent
processing and analysis of data directly on or near the end device – is becoming an
important driver of our business. Bringing AI closer to the data source is particularly
important for applications that depend on low latency. Edge AI also saves energy
and offers advantages in terms of data privacy. AI in the cloud and AI at the edge
complement one another.
We are advancing the development of Edge AI for a wide range of IoT applications.
Our customers benefit from state-of-the-art microcontrollers, sensors, actuators,
security, and connectivity solutions – the latter further strengthened by the acquisition
of Marvell’s Ethernet business. We also offer our AI software platform and market-ready
AI models. It’s the combination of these building blocks that makes the difference.
An example is the combination of our sensors and microcontrollers with AI, which
enables the precise classification of sounds, keywords, or gestures. Infineon brings
AI to end devices in a way that is reliable, efficient, user-friendly, and scalable.
One high-growth application area we are focusing on in the years ahead is humanoid
robotics. These robots will increasingly be deployed in industrial applications, logistics,
healthcare, and other areas. Whether these robots resemble humans or take another
form is secondary. What determines their capabilities in complex real-world environ-
ments is intelligent semiconductors. Our comprehensive portfolio for compact motor
control with software support, sensors, connectivity, security, power management,
and battery management enables all the core functional building blocks of humanoid
robotics. Together with our customers, we are laying the foundation for a new era of
intelligent, autonomous solutions.
Quantum computing: The next major technological leap
in the digital world
Infineon is helping to shape the technologies of tomorrow. Another example is quantum
computing – one of the most promising technologies of all. It has the potential to
solve highly complex problems that are currently impossible or extremely inefficient
to tackle using conventional computers in areas such as materials research, pharma-
ceutical development, or logistics optimization. In collaboration with strong partners
like Quantinuum and IonQ, we are advancing quantum computing and working on
innovative approaches such as ion traps and superconducting qubits.
While we lay the foundation for tomorrow’s computer technology, our post-quantum
cryptography-certified products are already providing protection against future threats.
These solutions ensure the long-term security of sensitive data in an increasingly
digital world.
Infineon | Annual Report 2025
7
Further information
Consolidated Financial Statements
Combined Management Report
Letter to shareholders
Management Board and Supervisory Board
Strategic foundations for our long-term competitiveness
To meet the growing demands of our markets in the years ahead and best position
Infineon for long-term success, we launched new strategic initiatives and made
substantial progress in implementing ongoing projects in the 2025 fiscal year. Here
I would like to highlight a few examples:
– In dynamic markets, speed is a critical success factor – for our customers and
Infineon alike. This is why we are systematically working across the Group to deliver
our innovations even faster to customers. We achieve this, for example, by acceler-
ating the decision-making process for new products and reducing development
timelines. We are consistently embedding our “accelerate innovation-to-customer
value” approach as a core leadership initiative across our global organization, well
beyond the development teams.
– With a clever mix of in-house manufacturing and outsourcing, we are ensuring our
supply capabilities and resilience while maintaining our technological edge. We are
strengthening our technology leadership in the field of power semiconductors. With
our shift of silicon carbide manufacturing to 200-millimeter wafers and gallium nitride
manufacturing to 300-millimeter wafers, we are setting new standards in power
electronics. Both of these semiconductor materials are essential for application
areas such as electric vehicles, renewable energy, and AI data centers.
– In April 2025, we celebrated the topping-out ceremony for our new Smart Power
Fab in Dresden (Germany). The site will be one of Europe’s most advanced semi
conductor factories and is expected to create up to 1,000 new jobs. This factory
strengthens both our power and analog semiconductor portfolios, which are
particularly important for AI and automotive applications. Combined with our broad
portfolio of microcontrollers and connectivity solutions, this gives us an excellent
competitive position. The new fab is scheduled to open in the 2026 calendar year.
We will manage the production ramp-up based on market developments.
– We are pursuing a globally balanced, highly efficient manufacturing landscape that
is resilient to geopolitical uncertainties. This includes the construction of a new
backend manufacturing facility in Thailand, south of Bangkok, which complements
the expansion of our frontend capacity. We will require this additional manufactur-
ing space in the years ahead to meet the rising demand for power modules for
industrial applications, renewable energy, and more. We also plan to use the site as
a testing center. The first building is expected to be operational in early 2026. In
areas where in-house manufacturing offers no competitive advantage, we leverage
synergies with strategic foundry partners. In June 2025, we sold our 200-millimeter
fab in Austin (Texas, USA) to the U.S.-based company SkyWater and entered into
a long-term supply agreement. This move secures Infineon a manufacturing base in
the United States.
– Sustainability has been an integral part of our strategy at Infineon for many years.
On our path to becoming CO₂-neutral by 2030, we reached another milestone in the
2025 fiscal year. Our climate targets were validated by the renowned Science Based
Targets initiative (SBTi). This validation applies not only to our direct emissions
but also to those across our entire supply chain. Infineon was also honored with the
2025 German Sustainability Award in the “Electrical Engineering and Electronics”
category. This award is both recognition and an incentive. We want to be a role model
for sustainability and will steadily continue executing our ambitious sustainability
strategy.
– Our structural improvement program, “Step Up”, is fully on track, and we can already
see the success of the measures implemented. The program’s goal, which is set to
reach its full effect in the first half of the 2027 fiscal year, is to increase the annual
Segment Result by a high three‑digit million‑euro amount. By the end of the fiscal
year just completed, we had already achieved roughly half of this target. In other
words, we are executing the program measures somewhat faster than planned. At the
same time, we remain focused on our innovative strength and strategic investments
to reinforce our competitiveness for the long term.
Infineon | Annual Report 2025
8
Further information
Consolidated Financial Statements
Combined Management Report
Letter to shareholders
Management Board and Supervisory Board
None of these achievements would have been possible without the commitment
and expertise of our employees. They make Infineon a little better every day. For this,
I would also like to sincerely thank our entire team here.
As a company, we invest deliberately in the continued development of our employees.
Through tailored training programs, innovative learning platforms, and focused
talent development, we empower our employees to continuously expand their skills
and unlock their full potential. We also place strong emphasis on attracting new
talent who share our passion for innovation and progress. We cultivate a corporate
culture defined by openness, diversity, and mutual respect. This is how we ensure that
Infineon remains an attractive employer and innovation leader well into the future.
The 2026 fiscal year: Moderate growth
despite currency headwinds
As we enter the 2026 fiscal year, we remain in an environment where just-in-time
ordering patterns continue to limit insights into demand trends. Inventory levels
across supply chains have largely returned to normal. The extent and pace of recovery
in the semiconductor markets will largely depend on end-customer demand. Over
the course of the fiscal year, we expect to see volume growth and a gradual market
recovery. That said, market transparency remains limited. In our base-case scenario,
we project moderate revenue growth for the 2026 fiscal year. However, we expect
the typical seasonal price declines and unfavorable currency movements to weigh on
revenue growth at the same time.
In terms of our profitability, we anticipate additional positive effects from our “Step Up”
program as an increasing number of our initiatives take effect. At the same time,
high cyclical underutilization costs in our manufacturing operations are expected to
decrease only gradually.
Changes in the Management Board: Thank you
to Rutger Wijburg and welcome to Alexander Gorski
My special thanks go to Dr. Rutger Wijburg, who as a member of the Management
Board team and Chief Operations Officer, made a decisive contribution to the further
development of our global production network through his experience and strategic
foresight. Under his leadership, key milestones were achieved, including the success-
ful startup of high‑volume silicon‑carbide production in Kulim (Malaysia) and the
construction of the Smart Power Fab in Dresden. We have bid him farewell with great
respect into his well‑deserved retirement.
At the same time, I am pleased to welcome Alexander Gorski, who joined us as Chief
Operations Officer and member of the Management Board team in October 2025. With
his broad experience and excellent track record in various leadership roles, he is the
ideal choice to seamlessly continue the development of our Operations area. I wish
him much success in his new role and I look forward to continuing to work together.
Lastly, I would like to thank you, our valued shareholders, for your trust in Infineon.
Your support enables us to drive innovations that sustainably transform the world
and create value in the process. Together, we will continue to write Infineon’s success
story in the years to come.
Neubiberg, November 2025
Jochen Hanebeck
Chief Executive Officer
Infineon | Annual Report 2025
9
Further information
Consolidated Financial Statements
Combined Management Report
Letter to shareholders
Management Board and Supervisory Board
The Management Board
Alexander Gorski
Chief Operations Officer
Dr. Sven Schneider
Chief Financial Officer
Jochen Hanebeck
Chief Executive Officer
Elke Reichart
Chief Digital and
Sustainability Officer
Andreas Urschitz
Chief Marketing Officer
(from left to right)
Infineon | Annual Report 2025
10
Further information
Consolidated Financial Statements
Combined Management Report
The Management Board
Management Board and Supervisory Board
The Management Board
Dr. Sven Schneider
Chief Financial Officer
Sven Schneider has been Chief
Financial Officer at Infineon
Technologies AG since 2019
(appointed until 30 April 2027).
He is responsible for Group Finance;
Group Financial Controlling & Plan-
ning; Treasury; Taxes; Accounting,
Consolidation & Reporting; Investor
Relations; Compliance; Audit; Risk
Management; Internal Controls;
Business Continuity (Export Control,
Corporate Real Estate & Physical
Security, Corporate Business
Resilience).
Sven Schneider was born in 1966 in
Berlin, Germany. After completing
his studies in business administration
(Diplom-Kaufmann), he received
his doctorate in business adminis
tration from the University of Trier,
Germany. From 1995 to 2019, he
held several positions at Linde AG,
most recently as Spokesman of
the Executive Board, Chief Financial
Officer and Labor Director.
Alexander Gorski
Chief Operations Officer
Alexander Gorski has been a
member of the Management Board
and Chief Operations Officer at
Infineon Technologies AG since
1 October 2025 (appointed until
30 September 2028). He is respon-
sible for Group Manufacturing,
Supply Chain, Procurement,
Customs, Quality Management,
Real Estate and Facility Manage-
ment (Manufacturing Sites).
Alexander Gorski was born in
1972 in Regensburg, Germany. He
obtained his master’s degree in
finance and business administration
at the University of Regensburg,
Germany. He started his career
at Infineon in 1998 (Siemens AG
until 1999).
Jochen Hanebeck
Chief Executive Officer
Jochen Hanebeck has been a
member of the Management Board
of Infineon Technologies AG since
2016. He has been CEO since 1 April
2022 (appointed until 31 March
2027). He is responsible for Group
Strategy, Divisions, Legal & Patents/
Corporate Governance, Human
Resources (Labor Director), Corpo-
rate Communications (excluding
Brand Communications), Public
Policy, Strategic Funding Manage-
ment, Mergers & Acquisitions, CTO
responsibilities (Research & Develop-
ment, Central Design, Start-ups &
Ventures).
Jochen Hanebeck was born in
1968 in Dortmund, Germany.
He received a degree in electrical
engineering from RWTH Aachen
University, Germany. He has been
with Infineon since 1994 (Siemens AG
until 1999).
Elke Reichart
Chief Digital and
Sustainability Officer
Elke Reichart has been a member of
the Management Board of Infineon
Technologies AG and Chief Digital
and Sustainability Officer since 2023
(appointed until 31 October 2026).
She is responsible for Groupwide
Digitalization and Sustainability
Strategy, Information Technology,
Digital Customer Interface, Software
Transformation, Data Strategy and
Protection, Cyber & Governance
Physical Security, Process Excellence,
Artificial Intelligence.
Elke Reichart was born in 1965 in
Stuttgart, Germany. She received
her diploma in Romance Languages
and Economics as well as a post-
graduate degree in Applied Com-
puter Science from the University
of Gießen, Germany. She began
her career at Hewlett-Packard Inc.
in 1991.
Andreas Urschitz
Chief Marketing Officer
Andreas Urschitz has been a
member of the Management Board
and Chief Marketing Officer of
Infineon Technologies AG since
2022 (appointed until 31 May 2030).
He is responsible for Group Sales,
Marketing & Distribution; Customer
Engagement Strategy; Application
Framework & Services; Organization
and Strategy enablement/imple-
mentation of all Regions; Brand
Communications.
Andreas Urschitz was born in
1972 in Klagenfurt, Austria. He
obtained his master’s degree in
commercial science at the Vienna
University of Economics and Busi-
ness, Austria. He has been with
Infineon (Siemens AG until 1999)
since 1995.
Infineon | Annual Report 2025
11
Further information
Consolidated Financial Statements
Combined Management Report
The Management Board
Management Board and Supervisory Board
More than 25 years ago, in March 2000, Infineon went public. This year marks a major
anniversary for us and an incredible growth journey. Today, we are a leading global
technology company. Our success is driven by innovation, a commitment to quality,
and the determination to continuously advance our company.
Semiconductors are the backbone of the modern world. As enablers of decarbon-
ization and digitalization, we carry a special responsibility. Infineon rose once again
to this responsibility in the 2025 fiscal year by delivering the essential building blocks
for shaping transformation. Whether solar, wind, mobility, or data centers – our
products and solutions enable the shift from fossil-based to CO2-neutral technologies.
Infineon power semiconductors make the electrification of our world possible. We
are advancing key future topics such as assisted driving and artificial intelligence. Our
mission is clear: To shape the future responsibly while creating long-term value – for
society, for Infineon, and for you, our shareholders.
This path is only possible thanks to people who are willing to move beyond their
comfort zones, with development, engineering, and manufacturing teams, and
employees who take responsibility every day and bring innovation to life. I am proud
of this, and I sincerely thank everyone for their dedication. And to you, our valued
shareholders, I extend my thanks for accompanying our company on this journey –
many of you for a full quarter of a century.
Meetings and main activities of the
Supervisory Board
In the 2025 fiscal year, the full Supervisory Board convened for a total of seven meetings
(five ordinary and two extraordinary meetings) as well as one written resolution.
Overall attendance by all Supervisory Board members was nearly 100 percent; only
Professor Hermann Eul was absent from one meeting to avoid a conflict of interest.
Attendance at the committee meetings of the Supervisory Board was 100 percent.
A tabular summary of individual attendance at both plenary and committee meetings
is provided in the Statement on Corporate Governance.
www.infineon.com/declaration-on-corporate-governance
The two extraordinary meetings of the full Supervisory Board were conducted virtually,
while all ordinary Supervisory Board meetings took place in person. Of the six meetings
of the Executive Committee, two extraordinary sessions were held virtually, with all
others conducted in person. The five ordinary meetings of the Investment, Finance,
and Audit Committee were held in person, while the two extraordinary meetings were
held virtually. The meetings of the Nomination Committee and the Technology and
Digitalization Committee were all conducted in person.
Report of the Supervisory Board
to the Annual General Meeting
Dr. Herbert Diess
Chairman of the Supervisory Board
Infineon | Annual Report 2025
12
Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
In conjunction with the regular Supervisory Board meetings, separate preparatory
meetings were held by both the shareholder and employee representatives. As part
of their sessions, the Supervisory Board and the Investment, Finance and Audit
Committee regularly convened without the Management Board.
Corporate strategy
In the 2025 fiscal year, the Supervisory Board continued to focus on corporate strategy
alongside its routine oversight and advisory responsibilities.
During a full-day strategy meeting in October 2024, the Supervisory Board held
in-depth discussions on strategic portfolio management, the digitalization strategy,
the automotive business in light of geopolitical uncertainties, and manufacturing
and financial strategy. A follow-up all-day strategy meeting was held in October 2025
in Asia, where the Supervisory Board had the opportunity to visit Infineon’s major
regional production sites and gain a first-hand impression on-site.
One of the key strategic developments in the 2025 fiscal year was the successfully
completed acquisition of Marvell’s Automotive Ethernet business. This acquisition
enhances Infineon’s system expertise in software-defined vehicles and further
strengthens its leadership in microcontrollers for automotive applications. It also
opens up new opportunities in the field of physical AI. An example is the collaboration
with NVIDIA in the area of humanoid robotics. With this move, Infineon is taking
the next step in innovation, enabling the development of more advanced robots. In
line with the Management Board, the Supervisory Board is firmly convinced of the
strategic value of this transaction and has approved it.
Another important strategic milestone in the 2025 fiscal year was the final confirmation
by the German Federal Ministry for Economic Affairs of its support for the new plant
in Dresden (Germany) (Smart Power Fab). The Supervisory Board had already approved
the site expansion and the associated multi-billion-euro investment in the 2023 fiscal
year. With the Smart Power Fab, Infineon is helping to strengthen Europe’s micro-
electronics supply chains. This step also reinforces the status of Dresden and Silicon
Saxony as the largest semiconductor hub in Europe.
Management Board personnel matters
Dr. Rutger Wijburg, member of the Management Board and Chief Operations Officer
(COO) of the Company, stepped down at the end of the 2025 fiscal year and entered
retirement. The Supervisory Board extends its thanks to Dr. Rutger Wijburg for
his pioneering work at Infineon. He successfully positioned the global production
network for growth, efficiency, and resilience. Key milestones under his leadership
include the new high-volume manufacturing module in Kulim (Malaysia) and the
Smart Power Fab in Dresden.
The Supervisory Board appointed Alexander Gorski as his successor at the beginning
of the 2026 fiscal year. Alexander Gorski previously headed the frontend operations
at Infineon and, as COO, will be responsible for manufacturing, procurement, supply
chain, and quality management, among other areas. As is customary for first-time
appointments, his term on the Management Board will initially be for three years.
Alexander Gorski brings extensive experience and has delivered outstanding perfor-
mance in various leadership roles over the past years. This makes him the ideal
internal successor to continue driving the progress in the key area of Operations.
Management Board remuneration
Following the presentation of the Management Board remuneration system at the 2025
Annual General Meeting, some shareholders and proxy advisors raised concerns,
primarily regarding the adjustments to the Long-Term Incentive (LTI), and specifically
the performance criterion of relative Total Shareholder Return (TSR). In light of this,
the Supervisory Board took a renewed, in-depth look in the 2025 fiscal year at the
Management Board’s remuneration, taking this criticism into account.
The Supervisory Board continues to view TSR as a key metric for assessing Infineon’s
capital market performance. TSR is a central indicator for ensuring the “pay-for-
performance” principle in Management Board remuneration and aligning the interests
of the Management Board with shareholders.
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
The semiconductor peer group was substantially redefined compared to the peer
group applied under the 2021 remuneration system. It now includes only companies in
direct competition with Infineon and reflects a cross-section of Europe, the Americas,
and Asia-Pacific. In an increasingly interconnected world and amid rising challenges
from geopolitical shifts and uncertainties, the Supervisory Board believes it is
important to benchmark against both key semiconductor industry competitors as
well as the German capital market. This has led to the introduction of a further peer
group based on the DAX index (excluding financial service providers).
To better align the LTI with Infineon’s long-term strategy and management framework,
the revised 2025 remuneration system also introduced the three performance criteria
of the Target Operating Model (TOM). TOM sets ambitious objectives and incentivizes
the generation of growth and an increase in long-term profitability and liquidity. The
TOM goals of revenue growth, Segment Result Margin, and adjusted Free Cash Flow
relative to revenue are weighted at 40 percent. Since these performance metrics are
measured over a four-year performance period, independent of the cyclical nature
of day-to-day operations, they create a distinctly different incentive effect compared
to the Short-Term Incentive (STI).
To ensure a balanced risk-reward profile while maintaining a high level of ambition,
the Supervisory Board decided to align the TSR performance curve with standard
market practices, both in Germany and internationally.
Following another in-depth review, the Supervisory Board continues to view the
combination of the TSR peer groups, the TOM objectives, and the ambitious, strategy-
driven sustainability targets as competitive, reflecting a strong “pay-for-performance”
focus and ensuring a balanced risk-reward profile. The Supervisory Board has therefore
decided to retain this Long-Term Incentive (LTI) structure.
Separately, however, the Supervisory Board concluded that it would be appropriate
to address and implement other points raised by the shareholders and proxy advisors.
Therefore, on 27 November 2025, at the recommendation of its Executive Committee,
the Supervisory Board resolved to make the following changes to the Management
Board remuneration system, which was last approved by the Annual General Meeting
on 20 February 2025:
– To abolish the discretionary modifier within the Short-Term Incentive (STI).
– To expand the clawback provision: variable compensation may now also be
reclaimed in cases of incorrect financial reporting, not just compliance-related
breaches.
– To fully abolish the change-of-control clauses.
– To reinforce long-term alignment by increasing the LTI period to five years, with
the fifth year serving as an additional holding period following the four-year
performance period.
– Remuneration will be increased to a market-competitive level. The maximum
remuneration cap, however, will not be increased and will remain unchanged.
The revised Management Board remuneration system will be made available online
at
www.infineon.com/about/investor/annual-general-meeting. It is planned to be included in
all current Management Board service agreements, as of 1 October 2025.
Further details on Management Board remuneration can be found in the Remuneration
Report. As in the previous year, the Management Board and Supervisory Board
have resolved to subject the report not only to the formal audit as part of the annual
financial audit, but also to a substantive review. In this context, Deloitte has issued
an unqualified audit opinion.
Litigation/Qimonda proceedings
Infineon, and thereby the Supervisory Board, has been contending with the Qimonda
proceedings for a number of years. It was possible to conclude these proceedings
in the 2024 fiscal year through a settlement. After thorough consideration, the
Management Board and Supervisory Board determined that the settlement was in
the Group’s best interest and approved it.
Infineon | Annual Report 2025
14
Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
Following the settlement, it was the duty of the Supervisory Board to examine possible
claims for damages against former members of the Management Board. Two renowned
international law firms were engaged for this purpose. Both firms concluded that it is
highly unlikely that claims for damages against former Management Board members
exist. The Supervisory Board concurred with this assessment on the recommendation
of its Executive Committee. It resolved not to pursue any legal claims.
Supervisory Board personnel matters
In December 2024, all employee representatives on the Supervisory Board were newly
elected by delegates of Infineon’s workforce. The result brought only one personnel
change: Jürgen Scholz of IG Metall did not stand for re-election and was succeeded
by Rico Irmischer. The new terms began at the close of the Annual General Meeting
on 20 February 2025 and will run for five years, ending with the close of the Annual
General Meeting in 2030.
Additionally, the Supervisory Board terms of shareholder representatives Xiaoqun
Clever-Steg, Dr. Friedrich Eichiner, Dr. Ulrich Spiesshofer, and Margret Suckale
came to an end. At the Annual General Meeting on 20 February 2025, all four were
re-elected for another four-year term, ending with the close of the Annual General
Meeting in 2029.
Supervisory Board remuneration
In accordance with section 113 (3) of the German Stock Corporation Act (AktG),
the Annual General Meeting of a listed company must vote on the remuneration of
Supervisory Board members at least every four years. The current remuneration
policies for Supervisory Board members are set out in article 11 of the Company’s
Articles of Association and were approved by the Annual General Meeting in 2024.
A new resolution on this matter would therefore not be required until the Annual
General Meeting in 2028. However, the Management Board and Supervisory Board
have determined that adjustments to certain aspects of the remuneration policies
should already be made to ensure market-competitive remuneration.
As a result, basic remuneration is to be raised to €110,000. Supplements for specific
roles are also to be increased to €130,000 for the Chair of the Supervisory Board,
€50,000 for the Deputy Chair, €50,000 for each member of the Investment, Finance
and Audit Committee, and €30,000 for each member of any other committee (with
the exception of the Mediation Committee). By way of deviation, supplements are to
be set at €100,000 for the Chair of the Investment, Finance and Audit Committee,
and at €60,000 each for the Chair of the Nomination Committee and the Chair of the
Technology and Digitalization Committee. The current provision requiring that
committee-related supplements be granted only if the respective committee meets
at least three times in the relevant fiscal year is to be deleted. All changes are set to
take effect with the 2026 fiscal year beginning on 1 October 2025.
The Management Board and Supervisory Board therefore propose that, effective
1 October 2025, the Annual General Meeting approve the remuneration system for
Supervisory Board members as made available at
www.infineon.com/annual-general-meeting,
and adopt revised wording for articles 11(1) and 11(5) of the Articles of Association,
while keeping articles 11(2) to 11(4) unchanged.
Basic and ongoing training
Supervisory Board members generally take personal responsibility for the basic and
ongoing training necessary for their duties, with appropriate support provided by the
Company. Targeted development is facilitated through internal training events. As
part of the onboarding process for new Supervisory Board members, comprehensive
briefings are offered covering, among other topics, Infineon’s business segments, the
fundamentals and key elements of its corporate strategy, investment planning, and
manufacturing strategy.
Committee work
The committees prepare Supervisory Board resolutions and other key matters for
discussion in the plenary sessions. In addition, the Supervisory Board has given the
committees certain decision-making powers. The chairs of the committees report to
the Supervisory Board on the committee meetings in the subsequent plenary session.
Infineon | Annual Report 2025
15
Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
Mediation Committee
It was not necessary for the Mediation Committee to convene during the reporting year.
Nomination Committee
The Nomination Committee met for two meetings in the 2025 fiscal year. Topics included
the resolution on a recommendation to the Supervisory Board concerning election
proposals for the 2025 Annual General Meeting. The committee also discussed the
qualifications matrix and general succession planning.
Executive Committee
The Executive Committee convened six times during the 2025 fiscal year. The focus of
the meetings included the preparation of Supervisory Board resolutions concerning
the determination of the Management Board variable remuneration, as well as other
previously mentioned remuneration and personnel matters. In addition, the committee
addressed Supervisory Board remuneration, general Management Board succession
planning, the aforementioned Qimonda recourse, and D&O insurance matters.
Investment, Finance and Audit Committee
During the 2025 fiscal year, the Investment, Finance and Audit Committee held five
ordinary and two extraordinary meetings.
Key areas of focus included monitoring the financial reporting process, reviewing the
half-year and quarterly financial statements, a preliminary review of the Separate
Financial Statements, Consolidated Financial Statements, and the Combined Manage
ment Report for Infineon Technologies AG and the Infineon Group, and discussing the
auditor’s reports. The committee also conducted an assessment of the quality of the
audit. In addition, the committee reviewed the financial and investment planning. It
also received regular briefings on the internal control and internal audit systems, the
risk management system, and the Compliance Management System, and addressed
the adequacy and effectiveness of these systems. The committee was continuously
informed about additional risks and significant legal disputes.
It also addressed the general financing strategy in detail, including the conclusion of
a firmly committed credit line (revolving credit facility – RCF). It further prepared
the full Supervisory Board’s resolution on a limited share buyback for the purpose of
allocating shares under the existing employee participation programs.
The committee’s recommendation to the full Supervisory Board to propose Deloitte
GmbH Wirtschaftsprüfungsgesellschaft, Munich (Deloitte), to the Annual General
Meeting 2026 as the auditor was based on an independence declaration provided by
Deloitte and an analysis of the non-audit services provided. No indications were
found of any grounds for exclusion, conflicts of interest, or other risks to the auditor’s
independence. The committee also addressed the fee arrangements and issued the
corresponding audit assignments. Additional audit focus areas were also defined.
Representatives of the auditor attended the regular meetings of the Investment,
Finance and Audit Committee and provided detailed reports on the audit activities in
those meetings. At each meeting, a discussion was held between the auditor and
the committee without the presence of the Management Board, as was also the case
during the balance sheet meeting of the Supervisory Board with the full plenary.
The committee also addressed the Remuneration Report, the combined separate
Non-Financial Report, and, in this context, further sustainability-related topics.
Technology and Digitalization Committee
The Supervisory Board’s Technology and Digitalization Committee met three times
during the reporting year. The committee was briefed by the Management Board on
various topics, including the functions and benefits of software-defined vehicles
and the related business opportunities for Infineon, as well as on GaN-based power
semiconductors and system solutions, software and product lifecycle management,
future power infrastructure, and digital customer engagement.
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
Corporate Governance
Declaration of Compliance 2025
In the Declaration of Compliance issued in November 2025, the Management Board
and the Supervisory Board declared that, since the submission of the last declaration
in November 2024, all the recommendations of the German Corporate Governance
Code contained in the version dated 28 April 2022 have been complied with and will
continue to be complied with in the future.
The full text of the Declaration of Compliance 2025 and all previous Declarations of
Compliance are available on Infineon’s website.
www.infineon.com/declaration-of-compliance
Self-assessment of the Supervisory Board
The Supervisory Board regularly assesses how effectively the Supervisory Board as
a whole and its committees perform their duties. In the 2025 fiscal year, as in the
previous year, this assessment was conducted using an internal questionnaire. The
questionnaire focused primarily on the collaboration between the Supervisory Board
and Management Board, reporting (particularly on M&A projects), the treatment of
other strategic topics, Management Board succession planning, and training needs
within the Supervisory Board. The questionnaire’s results were later discussed in
a Supervisory Board meeting, and no material deficiencies were identified. There
was a consensus that the Supervisory Board had found a good balance between
its oversight and advisory roles vis-à-vis the Management Board. Where relevant, the
results were also discussed with the Management Board.
Examination of potential conflicts of interest
The members of the Management Board and the Supervisory Board are required to
disclose any potential conflicts of interest to the Supervisory Board without delay. In
connection with the Qimonda proceedings and the examination of potential claims
for damages, Professor Hermann Eul pointed out his former role as a member of
Infineon’s Management Board. As a result, he did not take part in the Supervisory
Board’s deliberations or resolutions on the matter and was not given access to the
relevant documentation.
The German Corporate Governance Code requires Supervisory Board approval before
members of the Management Board take on sideline activities, particularly when it
involves external supervisory board mandates. No conflicts of interest were identified
in the sideline activities undertaken; in fact, all were deemed to be in Infineon’s
interest, and the Supervisory Board, or its Executive Committee, granted the necessary
approvals.
Further information on the topic of corporate governance is presented in the Statement
on Corporate Governance.
www.infineon.com/declaration-on-corporate-governance
Rules of procedure for the Supervisory Board and Management Board
All rules of procedure for the Supervisory Board and Management Board are available
on the Infineon website.
www.infineon.com/cms/en/about-infineon/investor/corporate-governance/articles-of-association/
Separate and Consolidated Financial Statements
Deloitte audited the Separate Financial Statements of Infineon Technologies AG and
the Consolidated Financial Statements as of 30 September 2025, as well as the
Combined Management Report of Infineon Technologies AG and the Infineon Group,
and issued unqualified audit opinions thereon.
The Half-Year Financial Report was also reviewed by Deloitte. No issues were identified
that would suggest the condensed Interim Consolidated Financial Statements or
the Interim Group Management Report were not prepared in accordance with the
applicable provisions in all material respects.
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
Deloitte has served as the auditor of Infineon Technologies AG, the group auditor of
the Infineon Group, and the reviewer of the Interim Consolidated Financial Statements
since the 2024 fiscal year (1 October 2023 to 30 September 2024). Alexander Hofmann,
the auditor responsible for the engagement, signed the audit opinion for the second
time in the 2025 fiscal year, alongside Christoph Schenk as co-signer.
At the meeting of the Investment, Finance and Audit Committee on 11 November 2025,
which continued via telephone conference on 20 November 2025, the committee
held in-depth discussions with the auditor on the Separate Financial Statements, the
Consolidated Financial Statements, the Combined Management Report, the appro-
priation of unappropriated profit, and the audit findings. In doing so, the committee
also examined the key audit matters outlined in the audit opinion and the related
audit procedures. Based on its assessment, the Investment, Finance and Audit
Committee resolved to recommend that the Supervisory Board approve the financial
statements prepared and presented by the Management Board and endorse the
proposed appropriation of unappropriated profit.
At the Supervisory Board meeting on 27 November 2025, the Separate Financial
Statements, Consolidated Financial Statements, Combined Management Report,
the Management Board’s proposed appropriation of unappropriated profit, and
Deloitte’s written audit reports were available to the Supervisory Board. The Chair
of the Investment, Finance and Audit Committee also presented the committee’s
recommendations at this meeting in detail. All material accounting and audit-related
matters, including the key audit matters, were thoroughly discussed with the auditor
and reviewed by the Supervisory Board. The Supervisory Board’s review also
included the proposed dividend of €0.35 per dividend-entitled share.
After thorough discussions, the Supervisory Board concluded that it had no objec-
tions to the financial statements or to the audits performed by the auditor. In the
Supervisory Board’s opinion, the Combined Management Report complies with all
legal requirements. The Supervisory Board concurred with the statements in the
management report concerning the Infineon’s future development, approved the result
of the audit of the financial statements, the Separate Financial Statements of Infineon
Technologies AG and the Consolidated Financial Statements of the Infineon Group for
the 2025 fiscal year, and formally adopted the Separate Financial Statements. The
Supervisory Board also endorsed the Management Board’s proposal for the appropri-
ation of unappropriated profit.
Additionally, the Investment, Finance and Audit Committee and the full Supervisory
Board reviewed the combined separate Non-Financial Report as of 30 September 2025,
prepared by the Management Board, as well as the Remuneration Report prepared
jointly with the Management Board. Deloitte issued an unqualified audit opinion on
both reports, having conducted a reasonable assurance engagement for the Remuner-
ation Report and a combination of reasonable and limited assurance engagements
for the combined separate Non-Financial Report. These documents were reviewed in
detail by the Investment, Finance and Audit Committee at its meeting on 11 November
2025, which was continued via telephone conference on 20 November 2025, and by
the Supervisory Board at its meeting on 27 November 2025. The Supervisory Board
adopted the Remuneration Report and noted and approved the combined separate
Non-Financial Report.
The Supervisory Board would like to thank the Management Board and all Infineon
employees for their great dedication and outstanding performance this past fiscal
year.
Neubiberg, November 2025
On behalf of the Supervisory Board
Dr. Herbert Diess
Chairman of the Supervisory Board
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Combined Management Report
Report of the Supervisory Board
Management Board and Supervisory Board
20 Business model
21 Overview
22 Value chain and manufacturing
24 The segments
27 Group strategy
27 Long-term growth trends
28 Strategic targets
30 Strategic guidelines
34 Human resources strategy
35 Research and development
39 Internal management system
42 Review of the semiconductor industry
44 2025 fiscal year
44 Group performance
46 Segment performance
51 Review of results of operations
55 Review of financial condition
58 Review of liquidity
61 Infineon on the capital market
64 Overall statement on Infineon’s financial condition
65 Report on outlook, risk and opportunity
65 Outlook
68 Risk and opportunity report
82 Infineon Technologies AG
86 Corporate Governance
86 Information pursuant to sections 289a and 315a
of the German Commercial Code (HGB)
90 Statement on Corporate Governance pursuant to sections
289f and 315d of the German Commercial Code (HGB)
90 Remuneration Report
90 List of references
This report combines the Group Management Report of Infineon (“Infineon”
or “the Group”) – comprising Infineon Technologies AG (hereafter also
referred to as “the Company”) and its consolidated subsidiaries – and the
Management Report of Infineon Technologies AG.
The Combined Management Report contains forward-looking statements
about the business, financial condition and earnings performance of
Infineon. These statements are founded on assumptions and projections
on the basis of currently available information and present estimates.
They are subject to a multitude of uncertainties and risks. Actual business
development may therefore differ materially from what has been expec-
ted. Beyond disclosure requirements stipulated by law, Infineon does
not undertake any obligation to update forward-looking statements.
The content of these sections is voluntary content that has not been
checked by the auditor but only read critically. It does not form part of the
Management Report. In the case of cross-references, the information to
which the cross-references refer has not been checked either.
Combined Management Report
Infineon | Annual Report 2025
19
Business model
20
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
Infineon | Annual Report 2025
Overview
Semiconductors are essential to mastering the challenges of decarbonization and
digital transformation. They make our everyday lives easier, safer and greener.
With around 57,000 employees worldwide, Infineon is a leading global provider of
semiconductor solutions that pave the way for green and efficient energy supply,
clean and safe mobility, and intelligent and secure IoT applications. Infineon develops,
manufactures and markets a wide variety of semiconductors and semiconductor-
based solutions, covering attractive growth markets in the automotive sector, the
industrial sector and AI data centers, and the consumer sector.
Infineon’s product range can be divided into three categories.
The first is power semiconductors based on silicon, silicon carbide and gallium nitride
in the form of individual components, modules and system solutions. Over decades,
Infineon has acquired in-depth knowledge about the use of power semiconductors
and the specific challenges associated with their applications, developing a compre-
hensive portfolio.
The second category encompasses Infineon’s extensive expertise in microcontrollers
and connectivity. This includes its market-leading portfolio of automotive micro
controllers as well as microcontrollers for security and industrial applications, in
addition to connectivity products such as Wi-Fi, Bluetooth, the Ethernet portfolio
acquired from Marvell, and others, supplemented by appropriate software.
The third category is a wide range of analog/mixed-signal semiconductors and
sensors used in conjunction with microcontrollers. This category also includes differ-
entiated memory technologies for special applications. We combine these various
product categories through our strategic approach “Product to System”, offering our
customers, for example, power semiconductors coordinated with driver components,
sensors and microcontrollers, including software to facilitate particularly efficient
energy conversion systems.
Infineon | Annual Report 2025
21
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
Overview
Value chain and manufacturing
Infineon covers the main stages of the semiconductor value chain: from development
and design, via frontend and backend manufacturing and marketing, to delivery
to customers, see
C01. Increasingly, it also provides software and other services,
such as application-specific support for the implementation of our solutions.
In frontend manufacturing, the wafers are processed. Optical, physical and chemical
methods are used to create transistors and their interconnections, thus determining
the function of the chip. The wafers are transferred from the frontend site to a backend
site, where the remaining processing steps take place.
These steps include sawing the wafer into individual chips, as well as assembly and
testing. Following the backend manufacturing, the chips are sold to customers via
regional distribution centers.
In order to optimize the use of capital and increase flexibility, we use external manufac-
turing partners in addition to our in-house manufacturing. In frontend manufacturing,
this applies primarily to manufacturing processes with little potential for differentiation
and, in backend manufacturing, to standardized package types. More information
about our manufacturing strategy is given in the chapter “Group strategy”, p. 27 ff.
C01 The main stages of the semiconductor value chain
Frontend
manufacturing
Backend
manufacturing
Distribution
center
Customer
In-house
manufacturing
Services
Application support
Digital services
In-house
manufacturing
By foundry
partners
By
sub-contractors
Design
hardware +
software
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
Value chain and manufacturing
■ Corporate headquarters
■ Regional headquarters
■ Frontend manufacturing
■ Backend manufacturing
For the definition of frontend/backend manufacturing, see chapter “Value chain and manufacturing”.
p. 22
Americas
Mexico
■ 1 Tijuana
USA
■ 2 Leominster, MA
■ 3 Mesa, AZ
■ 4 San Jose, CA
Asia-Pacific
Indonesia
■ 1 Batam
Malaysia
■ 2 Kulim
■ 3 Melaka
Singapore
■ ■ 4 Singapore
Thailand
■ 5 Bangkok
Greater China
Mainland China
■ 6 Shanghai
■ 7 Wuxi
Japan
■ 8 Tokyo
Headquarters and manufacturing sites (as of 30 September 2025)
7
2
3
1
5
6
4
8
2
3
4
1
Europe, Middle East, Africa
Austria
■ 1 Villach
Germany
■ 2 Neubiberg
near Munich
■ 3 Dresden
■ ■ 4 Regensburg
■ 5 Warstein
Hungary
■ 6 Cegléd
1
4
3
5
2
6
Infineon | Annual Report 2025
23
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
Value chain and manufacturing
The segments
In addition to general areas within the Group, such as manufacturing and various
corporate functions, Infineon comprises four segments (also known as divisions).
Each segment focuses on the needs of its own target markets and applications and
has individual responsibility for specific areas that reflect its core competencies.
Responsibility for Infineon’s semiconductor business in automotive electronics
lies primarily with the Automotive segment. The Green Industrial Power segment
concentrates on power semiconductors mostly used in industrial applications and
power infrastructure, while the Power & Sensor Systems segment addresses not
only sensor technologies for all end markets but also power supplies in general
(especially for data centers using artificial intelligence), telecommunications networks
and more consumer-oriented applications. Activities relating to IoT, including Edge
AI and security applications, are bundled within the Connected Secure Systems
segment. The segments often cooperate with one another to ensure comprehensive
coverage of the requirements of the various target markets. Marketing activities
are organized based on the following two market sectors: Automotive, Industrial &
Infrastructure and Consumer, Computing & Communication. This is intended to
offer our customers easier and more extensive access to Infineon’s entire range of
complementary, coordinated products from the various divisions to meet their
specific requirements.
On 1 January 2025, the “Sense & Control” business line, which was previously allocated
to the Automotive segment, was transferred to the Power & Sensor Systems segment.
The figures for the 2025 fiscal year reflect the transfer as from 1 October 2024. The
comparative figures for the previous year have been adjusted accordingly.
Chart
C02 provides an overview of the core competencies of the individual segments.
C02 Core competencies in the segments
Core competencies
Automotive
Green
Industrial Power
Power & Sensor
Systems
Connected
Secure Systems
Sensor technologies
✓
Radio frequency
✓
Embedded control
✓
✓
✓
Control of
power semiconductors
✓
✓
Power semiconductors
✓
✓
✓
Memories for
specific applications
✓
Connectivity
✓
✓
✓
Security
✓
✓
Software
✓
✓
✓
✓
A detailed presentation of the applications and product range of the individual
segments is given in the chapter “Applications and product range”, p. 184 ff.
Infineon | Annual Report 2025
24
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
The segments
ATV Automotive
The Automotive segment shapes the future of mobility with products and solutions to
make cars clean, safe and smart. We cover all application areas in the vehicle: power-
train and energy management, connectivity and infotainment, body and comfort
electronics, as well as safety and data security. Infineon is the world market leader in
semiconductor solutions for the automotive industry. Our range of products and
solutions helps to navigate the transition from internal combustion engines to hybrid
and electric drives, enabling an ever-increasing degree of automated driving, as well as
the software-defined vehicle. The latter is characterized by increased connectivity and
digitalization along with greater data security. We also offer our customers innovative
solutions in the following areas: digital cockpit, infotainment, comfort, and lighting
technology. Our product portfolio includes analog/mixed-signal components, micro-
controllers, components for fast and secure data transmission, software solutions,
memories for specific applications, and power semiconductors based on Si, SiC and
GaN complemented by sensors from the Power & Sensor Systems segment.
GIP Green Industrial Power
The Green Industrial Power segment enables intelligent management and efficient
conversion of electric energy along the entire conversion chain: from generation,
transmission and storage to use. The product portfolio comprises power transistors
and modules based on Si and SiC. We offer products in the Green Industrial Power
segment, whether Si-based or SiC-based, in various form factors and with different
levels of functionality. The segment’s broad application spectrum includes inverters
for photovoltaic and wind power systems and battery storage, motor control units
for industrial manufacturing and for automation and building technology, traction,
electric utility vehicles (such as buses and construction and agricultural vehicles),
major home appliances, systems for high-voltage direct current transmission and
energy storage, industrial power supplies and the charging infrastructure for electric
vehicles.
Infineon | Annual Report 2025
25
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
The segments
PSS Power & Sensor Systems
The Power & Sensor Systems segment encompasses a wide selection of power semi-
conductors and their control. We use these power semiconductors to make electronic
devices such as power supplies, power tools, lighting systems, mobile devices and
industrial and consumer applications smaller, lighter and more energy-efficient, as
well as to develop new functionalities. We are drawing on the next generation of new,
innovative solutions based on Si, SiC and GaN products in the areas of data centers
(especially for artificial intelligence), robots, power supplies and adapters, 5G and
renewable energy (primarily for roof-top solar systems). Our product portfolio for
power supplies comprises analog/mixed-signal components such as control ICs, driver
stages and power transistors. It addresses the two key requirements of the market:
efficiency and power density. The portfolio also includes sensors (such as radar and
magnetic field sensors) for all end markets and radio frequency products, as well as
USB controllers.
CSS Connected Secure Systems
The Connected Secure Systems segment supplies comprehensive systems for a secure,
connected world based on reliable, game-changing microcontrollers and wireless
connectivity and security solutions. In particular, we offer microcontroller solutions,
Wi-Fi, Bluetooth, UWB (ultra-wideband) and NFC (near-field communication) solutions,
and combined connectivity solutions (known as combo chips), along with hardware-
based security technologies and an efficient software environment for the program-
ming and configuration of the microcontrollers and connectivity components that
cover many application areas. These include devices for IoT applications, connected
home appliances and smart home appliances, IT equipment, consumer electronics,
cloud security and connected vehicles, as well as credit and debit cards, electronic
passports and national identity cards. With our technologies in the areas of computing,
connectivity and security, we are contributing significantly towards ensuring that
current and future connected systems are reliably protected. These also include
microcontrollers focusing on machine learning, such as those for Edge AI applications.
Infineon | Annual Report 2025
26
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Business model
The segments
Long-term growth trends
As a leading global provider of semiconductor solutions, Infineon focuses its business
activities on two issues that are fundamental to society and where it sees major long-
term growth trends: decarbonization and digitalization.
Decarbonization
Decarbonization is a necessity to contain global warming and, therefore, one of
humanity’s key responsibilities over the next decades. Radical changes have to be
made to the ways in which we generate, transport, store and use energy. To halt
global warming, it is imperative that we greatly reduce our use of fossil fuels, make
a steady transition to renewables and widely adopt electrification. Realizing this
transition requires the use of not only wind and solar power but also systems for the
storage and efficient transportation of energy. We believe that one of the key tasks
for Infineon is to provide semiconductor solutions for more efficient generation,
conversion and use of electric energy. Our semiconductors are making a major
contribution towards ensuring that tomorrow’s power infrastructure is as efficient
and flexible as possible. An example of this is the use of semiconductor-based
transformers, known as Solid-State Transformers (SSTs). Through our business
operations, we are playing an active role in shaping the quality of life of generations
to come.
Digitalization
Digitalization is another key trend. This involves connectivity between ever-smarter
devices with an ability to perceive their environment, devices that make life easier
and safer. Artificial intelligence is increasingly finding its way into many different areas
of life and the economy, including personal AI assistants. Physical AI will also be
used in the future (for example, in the form of humanoid robots). All of this provides
greater convenience and security in the smart home, higher levels of efficiency in
the development and manufacturing of goods, and new services such as support to
older people. Infineon supplies microcontrollers with software and sensors that
make it possible to produce connected and smart IoT devices with local AI, both in the
automotive and industrial sectors and in the end user sector. In addition, our state-of-
the-art power semiconductors and systems architectures ensure efficient power
supplies to humanoid robots as well as to high-performance processors and data
centers for large language models and other advanced AI applications – “We power AI”.
Infineon sees itself as a trailblazer for a carbon-neutral and digital future: “Driving
decarbonization and digitalization. Together.” This applies to large parts of our port-
folio. Sensors record mostly analog information from the world around us; analog/
mixed-signal components transform it into digital data; microcontrollers process these
data and generate control signals; memory ICs enable the microcontrollers to store
data and program codes; actuators such as power semiconductors convert the control
signals into actions and make the efficient generation and conversion of energy
possible; security solutions protect the integrity of devices and data, while connectivity
chips transfer these data within the digital world. Software enhances the benefit
to customers of our semiconductor solutions, allowing for more flexible adjustment.
We thereby establish a link between the real world and the digital world and enable a
carbon-neutral future.
Group strategy
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Long-term growth trends
Strategic targets
To generate value from decarbonization and digitalization with our semiconductor
solutions for our customers, the Group, our shareholders and society, we pursue
clear and measurable strategic targets.
Profitable growth
We want to continue to grow in our target markets and to increase our profitability. Our
long-term financial targets reflect this aspiration and apply over the semiconductor
cycle. We want to create value on a sustainable basis by focusing consistently on the
long-term growth trends of decarbonization and digitalization and implementing our
strategic guidelines (see the chapter “Strategic guidelines”, p. 30 ff.).
Target 1: Average annual revenue growth of
more than 10 percent over the cycle
We hold leading positions in our core markets and have expanded systematically over
the years into new and adjacent markets. Our four segments focus on the long-term
growth trends of decarbonization and digitalization. With our strategic approach
“Product to System”, we use our extensive application and product expertise to
provide more comprehensive solutions and thus create more value for our customers.
In the areas of electromobility, software-defined vehicles, power infrastructure,
data centers, especially with AI and IoT, including humanoid robots, we expect to
achieve above-average growth, resulting in total average annual revenue growth
for the Group over the cycle of more than 10 percent (“>10%”).
Target 2: Average Segment Result Margin of
25 percent over the cycle
A key criterion for our success is sustainable profitability. Infineon can consistently
pursue its targets, even in weaker market phases, by engaging in profitable economic
activity. We have set ourselves the target of achieving an average Segment Result
Margin of 25 percent over the cycle. A key element in achieving our profitability target
is our system solutions expertise, which is based on our strategic approach “Product
to System” and generates higher value and greater customer benefit. In the future,
software will play a larger role in various instances: driver and operating system soft-
ware for our microcontrollers, application software (sometimes using AI models), and
even software with which customers can better integrate or simulate our products.
We enjoy economies of scale and cost advantages while continuing to develop our
leading market position and innovative manufacturing technologies (such as those
used to produce 300-millimeter thin wafers). We are also driving forward economies
of scale for silicon carbide and gallium nitride. At the same time, we make sure that
when we consider our overall portfolio, all our businesses are making an adequate
contribution to Infineon’s success. Moreover, we aim to ensure that, over the cycle,
our research and development expenses, selling expenses, and especially our general
and administrative expenses, increase at a slower rate than the rate of growth in
our revenue. This is supported by our digitalization strategy and the relocation of
activities to best-cost countries.
Target 3: Adjusted Free Cash Flow within a range of
10 to 15 percent of revenue over the cycle
Looking at value generation, our Target Operating Model includes a Free Cash Flow
target. Free Cash Flow adjusted for large investments in frontend buildings and
major M&A (mergers and acquisitions) transactions should fall within a range of 10 to
15 percent of revenue over the cycle. This will be achieved by ensuring our operating
cash flow grows at a faster rate in the long term than our investment expenditure.
Infineon | Annual Report 2025
28
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Strategic targets
Capital structure targets
Our capital structure targets link together the concepts of environmental and economic
sustainability and ensure that Infineon remains a reliable partner in the long term. An
investment grade rating is the key element of Infineon’s conservative financial policy.
From this cornerstone, we derive our long-term capital structure targets, which consist
of a liquidity target and a leverage target.
Our liquidity target is to have a gross cash position of at least 10 percent of revenue
on average throughout a year. With this defined gross cash target, we will have
access to sufficient cash to be able to finance our operating business and investment
throughout all phases of the semiconductor cycle.
Our leverage target aims to limit gross financial debt to no more than two times EBITDA.
Infineon defines EBITDA as earnings from continuing operations before interest,
taxes, depreciation and amortization.
Sustainable corporate governance
We are convinced that economic success must go hand in hand with environmental
and social commitment. With this in mind, our goal is to contribute towards more
sustainable development in society. With our products, solutions and systems, we
contribute to greater energy efficiency in the end applications in which they are used,
thereby making an active contribution towards climate change mitigation. Sustain-
ability is of crucial importance both within the Group and in relation to our supply
chains. We manage Infineon based on this understanding of sustainability and act
responsibly for the benefit of society. Making a contribution towards containing
global warming forms part of our mission. We have therefore set ourselves the target
of becoming carbon-neutral by the end of the 2030 fiscal year; by the end of the 2025
fiscal year, our emissions should be reduced by 70 percent compared with the 2019
calendar year. This target relates to Infineon’s own greenhouse gas footprint and
includes not only all direct emissions but also indirect emissions from electricity
and heat. By the end of the 2025 fiscal year, our scope 1 and scope 2 emissions were
already 83.6 percent below the emissions for the base year 2019, meaning that we
have achieved the target we had set ourselves. The development of intelligent exhaust
air abatement systems, the purchase of electricity from renewable sources and the
implementation of energy efficiency schemes have all contributed to this reduction.
In the 2025 fiscal year, we achieved another milestone in our decarbonization efforts,
when the Science Based Targets initiative (SBTi) approved Infineon’s ambitious
greenhouse gas emission reduction targets. The approval spans not only the Group’s
own emissions (scope 1 and scope 2) but also emissions along its supply chain
(scope 3). The scope 1 and scope 2 targets are in line with the Paris Agreement to limit
the global temperature increase to 1.5 degrees Celsius, meeting the ambitious SBTi
requirements for near-term CO2 reduction targets. In addition, Infineon has now set
itself an official scope 3 target addressing the supply chain. Collaboration with suppliers
is a fundamental part of our sustainability strategy. Infineon’s procurement team is
already actively working together with over 100 suppliers on solutions that reduce
CO2 emissions along the supply chain. Specifically, Infineon has made a scope 3
emission target commitment to SBTi which states that 72.5 percent of its suppliers,
measured by emissions relating to purchased goods and services, capital goods, and
upstream transportation and distribution, will have a science-based target by 2029.
There were significant changes to the preparation and presentation of sustainability
information in the 2025 fiscal year compared with previous periods. This related
to both structure and content, given Infineon’s partial application of the European
Sustainability Reporting Standards (ESRS). Infineon has already begun, prior to the
implementation of the rules set out in the Corporate Sustainability Reporting Directive
(CSRD) in German law, to incorporate the requirements of substantial parts of the
framework into its reporting processes.
Further details about our sustainability activities are described in the separate
report “Sustainability at Infineon”. This report, including the combined separate
Non-Financial Report, which is based on the requirements set out in the German
CSR (Corporate Social Responsibility) Directive Implementation Act, can be
downloaded from the internet at
www.infineon.com/csr_reporting.
Infineon | Annual Report 2025
29
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Strategic targets
Strategic guidelines
To achieve our strategic targets, we rely on a number of strategic guidelines to ensure
sustainable corporate governance and profitable growth.
“Product to System” (P2S) with software
With our approach “Product to System”, we are fostering our leading positions in
the areas of power systems and IoT. P2S helps us to better adapt our solutions and
broad product portfolio to customer requirements. We understand new trends early
on and can develop innovative approaches together with our customers. As a result,
our customers can realize sustainable benefits, including those relating to system
performance, system costs and development time.
For this to succeed, we have to understand the environment in which our customers’
products are used, how these products are embedded in larger systems, with which
other devices the products interact, what requirements they have to fulfill and what
function they are intended to perform. We also have to consider which other active
and passive components and control concepts they use and what capabilities our
customers themselves contribute to the value creation process. Equipped with this
knowledge, we can make the most of our competencies. We want to translate the
technologically possible into successful products that provide the greatest possible
benefit to our customers. This helps us to continue to develop leading positions in
our markets.
In the context of P2S, software is playing an increasingly significant role. We have
intensified our activities in this area in the last few years through our own organic
growth and strategic partnerships, as well as through the acquisitions of Cypress,
Industrial Analytics, Imagimob and, recently, Marvell’s Automotive Ethernet business.
This means that we have at our disposal an entire ecosystem comprising software
components and a development environment, as well as reference designs, product
support, blogs, a developer community and online tutorials. An important element
of this ecosystem is the ModusToolbox™ development environment. This includes
reusable firmware that makes it easier for customers’ developers to program micro-
controllers and Wi-Fi and Bluetooth components. Thereby, we enable smaller
customers in particular to make even better use of our products and thus increase
our profitability.
Technology leadership and
customer-focused innovation
In accordance with our strategic approach of thinking in application trends, our
developers identify challenges early, together with our customers. This enables us to
fulfill the promise of technological leadership. Through close cooperation, we learn
to understand applications better, allowing us to identify future trends at an early
stage and develop tailored products based on our core competencies. In this way,
we can offer our customers either individual components or complete solutions,
including the necessary software, depending on their requirements.
We are continuing to enhance our leading technological position and expertise in
our core markets through radical and customer-focused innovation, focusing in
particular on generating direct benefits to our customers as rapidly as possible. This
approach is reflected in our mindset and our internal processes. This is how we
strengthen our core business and identify long-term growth opportunities in adjacent
business areas. As market leader in the field of power electronics, by way of example,
we began researching new materials at an early stage, building up our expertise,
and we are constantly broadening our product portfolio in order to generate added
value for our customers.
Infineon | Annual Report 2025
30
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Strategic guidelines
This also applies to our large portfolio of analog/mixed-signal products. Here we
have a broad range of differentiating smart power technologies, such as those used
for the power supply chain in data centers, driver components in the automotive
sector, motor control units in industrial applications, and various IoT applications.
Equally noteworthy from a technological perspective are compound semiconductors.
Whereas most power semiconductor components to date have been based on pure
silicon, silicon carbide and gallium nitride are two chemical compounds with physical
properties (in particular, a wide band gap) that make it possible to produce semi
conductors with even greater performance. These compounds allow for particularly
efficient electric switches in the smallest space; for example, they make efficient
charging stations for electric vehicles much more compact, allowing them to be
installed in more locations. With our innovative solutions, we enable power supplies
for data centers, from the high-voltage grid to the individual processor core: for
example, with silicon carbide-based converters for high-voltage direct current
transmission or modules for vertical power supply in particularly high-performance
AI servers. We consider a strong position in compound semiconductors essential
to reinforcing our leading position in power systems. Our technologically strong GaN
portfolio makes a major contribution here.
In autumn 2024, we were the first company worldwide to announce the rollout of
300-millimeter in-house manufacturing of GaN-based semiconductors. In the future,
we can save investment costs by converting the required proportion of our available
300-millimeter silicon capacity, thus ensuring our technological leadership in all the
main classes of power semiconductors and strengthening our competitive position.
Value creation through differentiating
manufacturing strategy and high quality
In areas in which we create added value for our customers and differentiation for
Infineon in manufacturing, we rely on in-house manufacturing. We make products in
our own fabs when doing so means that our customers benefit from lower cost,
higher performance or improved availability. This is the case, for example, with power
semiconductors and sensors as well as with analog/mixed-signal technologies.
However, where manufacturing in our own fabs offers no additional customer benefit
or opportunity to differentiate ourselves from the competition, we work together
with contract manufacturers. This is predominantly the case for highly integrated
digital products such as microcontrollers, connectivity components and security ICs,
where the differentiation arises mainly from the design and the software. To ensure
our delivery capability, even in times of scarce production capacity in standard
technologies, we have signed supply agreements with our contract manufacturers,
sometimes covering a period of several years.
Our 300-millimeter thin wafer manufacturing technology for power semiconductors
is a clear indication of the value of differentiating manufacturing in our own fabs.
As pioneers of this technology, the level of production we have now reached has
allowed us to achieve significant economies of scale. Compared with manufacturing
on 200-millimeter wafers, we benefit from significantly lower costs and lower capital
investment. This has enabled us to maintain our lead. With the factory at the Villach
site (Austria), together with our 300-millimeter manufacturing facility in Dresden
(Germany), we have established a closely coordinated manufacturing network across
the two sites. In line with our “One Virtual Fab” concept, we are using the same
processes, equipment, and automation and digitalization concepts in Villach and in
Dresden. This generates economies of scale, but it also benefits the customer, as
we have the flexibility to shift production volumes between the sites. We are applying a
similar concept in the area of compound semiconductors between our sites in Villach
and Kulim (Malaysia). The third module in Kulim, opened in the 2024 fiscal year, is also
able to generate synergies with the existing 200-millimeter production infrastructure.
Infineon | Annual Report 2025
31
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Strategic guidelines
Expanding our capacity in line with expected market trends over the cycle has proved
very effective and forward-thinking. In Kulim, we want to create the most competitive
manufacturing facility for silicon carbide semiconductors, reflected in a particularly
efficient production landscape with substantial economies of scale. We are also expand-
ing our site in Dresden as planned, to include an additional 300-millimeter module
for analog/mixed-signal products as well as power semiconductors. This is creating
capacity in particular for AI-based data centers and the automotive industry. The
new factory combines the two growth areas, decarbonization and digitalization, and
is designed to meet demand from our customers in the second half of the decade.
Our supply chains and our production are both resilient. Our manufacturing facilities
are spread across all major regions of the world, and our contract manufacturer
and supplier base is broadly diversified. The investment in a production company
in Germany (European Semiconductor Manufacturing Company, ESMC), which was
founded under the leadership of TSMC (Taiwan Semiconductor Manufacturing
Company) and in which Infineon holds a 10 percent stake, plays an important role in
the geographical diversification of the supply chains. The groundbreaking ceremony
for the factory in Dresden operated by ESMC took place in August 2024 and its
construction is proceeding on schedule.
In recent years, we have disposed of some of our smaller sites to continue to increase
our competitiveness through economies of scale. With this in mind, we have also
made significant progress this year, with the sale of our fab in Austin (Texas, USA) to
U.S. contractor SkyWater and the pending sale of the former site of Cypress in
Bangkok (Thailand) to Malaysian Pacific Industries Berhad (MPI). As a result of
long-term supply agreements, capacities from these factories will continue to be
reliably available to us.
High quality and reliability are key values for us, differentiating us from our competitors.
Therefore, quality plays a key role in the lifecycle of an Infineon product – from its
development and production to its supply and product-related services. Infineon is
certified worldwide in accordance with the leading quality standards and has an
efficient management system.
In addition, clearly defined quality principles provide guidance for our employees.
These principles have the overriding aim of honoring the pledges we have made to
our customers relating, among other things, to product functionality and reliability.
To achieve this, we attach great importance to understanding our customers’
concerns and clearly defining their product requirements. Honoring our pledges is
an essential guiding principle that is also reflected in the in-house cooperation we
see at Infineon.
Tried-and-tested processes, methods and tools, together with continuous improve-
ment programs, form the basis for the high priority Infineon attaches to quality. Our
quality departments are embedded in the global organization. Regular events such
as Quality Days at our global sites promote a greater awareness of quality, with the
result that all Infineon employees are responsible for honoring our quality pledge
within their own sphere of responsibility.
Infineon | Annual Report 2025
32
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Strategic guidelines
Portfolio management and inorganic growth
We conduct regular reviews to ascertain whether our operations, both individually and
as part of our overall portfolio, make an appropriate contribution to the success of
Infineon. This enables us to target the use of our financial resources and, as a result,
to continue to improve our profitable growth. We consider individual operations
from various points of view, such as value creation, our current and expected market
position, significance for our customers, and risk assessment. On this basis, we decide
the extent to which we will invest in an operation. Growth prospects and profitability
are mutually dependent here, with profitability enabling investment and ensuring
sustainable innovation and growth as a result.
We will continue to supplement our organic growth in the future with selective acquisi-
tions. These acquisitions will need to fulfill three criteria: a) be strategically beneficial
based on the portfolio process, b) be financially advantageous and c) be a good cultural
fit. A purchase must strengthen Infineon’s market position in accordance with our
strategic focus, usefully complementing our range of competencies. The corporate
culture of any potential acquisition must be a good fit with Infineon’s culture or must
add valuable elements.
A pioneer of digitalization
An important topic for us is Infineon’s digital transformation, which we are driving
forward using a strategic roadmap. As a global semiconductor manufacturer, we
benefit from the digital transformation in two ways: as a provider and as a user of
digital solutions. As a provider, we use digitalization and efficient platforms to support
our customers in the best possible way throughout the customer relationship and
the development process. We are constantly optimizing and expanding our website
and web content, and it is important for us that all product-related information and
support services are easily accessible. In July 2025, we extensively modernized our
digital offering as part of our NewWeb project, to provide customers with a particularly
responsive and user-friendly interface.
The accompanying software products and digital services are increasingly being
provided using appropriate licensing models via our digital customer interfaces, such
as the Infineon Developer Center. A major focus is on scaling up technical support
so that, even in fragmented markets, we can provide support to customers during their
product choice and design-in. The Infineon Developer Community offers round-the-
clock technical support to all customers and continues to expand and improve by
learning from customer queries and customer experience. With the specific usage of
AI-based methods, we enable even better support for our customers through the use
of powerful generative language models. This makes access to our resources faster
and easier. We will therefore continue to expand the AI-based portion in the next few
years. This is a particularly efficient way for us to ensure that customers use our
products and, indeed, use them in a more effective and targeted way.
As a user, we also use digitalization to optimize our internal processes and make them as
efficient and future-proof as possible. For example, we connect our sites and contract
manufacturers in accordance with Industry 4.0 to form a virtual manufacturing network.
In sales and marketing, we use applications based on methods for analyzing big
data that enable us to provide our customers with targeted, personal and increasingly
customized support via our digital platforms. In addition, we evaluate customer
behavior and customer requirements in a structured way and incorporate these
results into the development of our solutions and products. In manufacturing, we
are focusing to a greater extent on a high level of automation and the increasing
use of artificial intelligence methods in order to continue to improve our productivity
and quality. In all these areas, we systematically analyze which processes can be
further improved and optimized through the use of generative AI language models.
As part of our digital roadmap, we are focusing on the rapid implementation of
projects. When selecting projects, we are guided by the direct value contribution to
improving the customer experience through efficiency or productivity gains and
by their function as the necessary basis for future digitalization initiatives.
Infineon | Annual Report 2025
33
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Strategic guidelines
Human resources strategy
Our human resources (HR) strategy is a key component of Infineon’s success. It supports
us in our efforts to achieve our growth and profitability targets and enables us to
successfully navigate our way through varying economic phases and challenges. Our
HR understanding is “People create value. Engagement drives people”. Our overriding
objective is to foster our employees’ engagement and to take targeted measures to
achieve this. When employees are enthusiastic about their job, have the relevant skill
sets, and can take advantage of suitable opportunities for continuing professional
development, the outcome is a higher level of creativity, productivity and innovation,
as well as better results. We use regular pulse checks of our employees worldwide to
measure their level of engagement and thus keep our finger on the pulse of their
needs, enabling Infineon to make continuous progress.
We consider it our responsibility to contribute towards addressing the key societal
challenges. Decarbonization and digitalization are having an impact not only on our
world but also on the future of work. From this, we derive the key action areas of
our HR strategy. Our main focus is on
– attracting the best talent in the market, providing optimal support for onboarding,
developing internal talent and keeping it loyal to Infineon, and training our own
new generation;
– supporting Infineon’s profitable growth by continuing to drive forward and scalably
deploy digitalization and standardization in HR, by exploiting AI opportunities and
by actively evaluating other potential applications;
– strengthening leadership development programs as well as employee training and
skill enhancement; and
– pushing ahead with organizational development to be prepared for further growth
and promote not only internal cultural change (SPIRIT) but also the sustainable
reinforcement of our competitiveness (“Step Up”).
People are the main focus of our activities, as dedicated, healthy, successful employees
are key to maintaining and improving our market-leading position, thereby creating a
successful future for us all.
Further information, including detailed statistics, is available in the HR Report 2025
and in the 2025 Sustainability Report.
www.infineon.com/hrreport
www.infineon.com/csr_reporting
Infineon | Annual Report 2025
34
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Group strategy
Human resources strategy
Research and
development
35
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Research and development
Infineon | Annual Report 2025
Infineon’s research and development activities are in accord with its strategy of
continuing to strengthen its leading technological position through customer-focused
innovation. Research and development (R&D) activities therefore concentrate on
the development of new hardware and software products, the ongoing development
of existing products, and the continuous optimization of manufacturing processes.
One of our main objectives is to increase the efficiency and power density of our
power semiconductors without compromising on reliability. We focus on innovative
materials such as silicon carbide and gallium nitride. Innovative manufacturing
technologies play a key role here, an example of which is the introduction of in-house
300-millimeter manufacturing for GaN-based semiconductors.
We are continuing to expand our large portfolio of analog/mixed-signal products,
especially smart power technologies. These offer additional functions, including
diagnosis and current measurement, greater reliability and a reset facility, protecting
against short circuits, overcurrent and excess temperature.
Our broad portfolio of sensor products based on magnetic field effects or MEMS
technologies and of radar products addresses a variety of end markets and is a key
element in the link between the real world and the digital world.
The digitalization of our products and solutions is a fundamental prerequisite for
the implementation of our strategic approach “Product to System” (P2S). By offering
systems solutions, we create significant benefits for our customers in terms of system
performance, cost and development time. The key development fields here include
microcontrollers, connectivity and security solutions, and software.
Artificial intelligence (AI) plays a crucial role in a wide variety of applications to
improve products and processes. In Edge computing, for example, combining AI with
our intelligent sensors and microcontrollers enables a precise classification of
sounds, key words and gestures, opening up new approaches in human-machine
communication. In addition, AI supports internal processes such as chip design,
verification, and technical support for customers.
Infineon | Annual Report 2025
36
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Research and development
We are also addressing longer-term future-related topics in areas such as quantum
computing, where we are working together with industrial and research partners and
with start-ups on making advances in ion trap and superconducting qubit technologies.
As part of the QUTAC consortium (Quantum Technology & Application Consortium),
we are also devising ways in which quantum computing can be used profitably in
industry and society. Already now, our post-quantum cryptography (PQC) certified
products ensure the future security of data.
Research and development expenses totaled €2,227 million in the 2025 fiscal year
(previous year: €2,161 million1). We spent 15.2 percent of revenue on research and
development in the 2025 fiscal year, compared with 14.5 percent in the previous year.
Capitalized development costs in the 2025 fiscal year were €251 million (previous
year: €249 million). The amortization of capitalized development costs in the 2025 fiscal
year amounted to €151 million (previous year: €110 million). Subsidies and grants
received for research and development decreased from €215 million in the 2024 fiscal
year to €179 million in the 2025 fiscal year.
At the end of the 2025 fiscal year, Infineon employed 13,998 people (25 percent of
the total workforce) in research and development worldwide. Of these, 13 percent
worked on software. At the end of the 2024 fiscal year, 13,253 people were employed
by Infineon in research and development worldwide (23 percent of the workforce).
There were 75 research and development sites in the 2025 fiscal year (2024: 71)
across 28 countries.
Patents
Another indication of Infineon’s innovative power and long-term competitiveness is
the number of our patents. In the 2025 fiscal year, we applied for around 1,900 patents
worldwide (previous year: around 1,900). In addition to patent applications and
expirations, there were changes in the portfolio due to regular strategic patent port-
folio adjustments. Maintenance of the patent portfolio is also carried out on a regular
basis. This has resulted, along with new patent applications for inventions, in a
significant increase in the relevance of the patents, as highlighted again in 2025 by
LexisNexis® and Clarivate™ in their innovation reports. At the end of the 2025 fiscal
year, the worldwide patent portfolio comprised around 29,700 patents and patent
applications (previous year: around 29,900).
C03 R&D expenses1
€ in millions
R&D expenses
Percentage of revenue
15.2 %
14.5 %
2,161
2,227
2025
2024
1 Figures for the previous year have been adjusted (for details, see note 1 to the Consolidated Financial Statements).
1 Figures for the previous year have been adjusted (for details, see note 1 to the Consolidated Financial Statements).
Infineon | Annual Report 2025
37
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Research and development
R&D sites and application centers (as of 30 September 2025)
Sites > 10 employees.
Europe, Middle East, Africa
Austria
1 Graz
2 Klagenfurt
3 Linz
4 Villach
France
5 Le Puy-Sainte-
Réparade
Germany
6 Augsburg
7 Dresden
8 Duisburg
9 Erlangen
10 Ettlingen
11 Ilmenau
12 Langen
13 Neubiberg/
Munich
14 Regensburg
15 Soest
16 Warstein
Hungary
17 Budapest
18 Cegléd
Ireland
19 Cork
20 Dublin
Israel
21 Netanya
Italy
22 Padua
23 Pavia
Netherlands
24 Nijmegen
Romania
25 Braşov
26 Bucharest
27 Cluj-Napoca
28 Iaşi
Serbia
29 Belgrade
Sweden
30 Stockholm
Switzerland
31 Zurich
UK
32 Bristol
33 Redhill
Ukraine
34 Lviv
12
6
24
3
2
10
1
34
14
4
21
30
31
32
33
28
7
15
16
5
23
22
13
19
20
11
18
9
25
26
27
29
8
17
12
3
18
Americas
Canada
1 Kanata
Mexico
2 Guadalajara
3 Tijuana
USA
4 Andover, MA
5 Austin, TX
6 Chandler, AZ
7 Colorado Springs, CO
8 El Segundo, CA
9 Irvine, CA
10 Leominster, MA
11 Lexington, KY
12 Lynnwood, WA
13 Morrisville, NC
14 Portland, OR
15 Richardson, TX
16 San Diego, CA
17 San Jose, CA
18 Warwick, RI
16
9
8
10
7
2
11
13
4
1
5
15
17
14
6
18
Asia-Pacific
India
1 Ahmedabad
2 Bangalore
3 Vadodara
Indonesia
4 Batam
Korea
5 Bundang
6 Seoul
Malaysia
7 Ipoh
8 Kulim
9 Melaka
10 Penang
Philippines
11 Muntinlupa
Singapore
12 Singapore
Thailand
13 Samut Prakan
Vietnam
14 Hanoi
Greater China
Mainland China
15 Chengdu
16 Shanghai
17 Shenzhen
18 Wuxi
19 Xi’an
Taiwan
20 Hsinchu
21 Taipeh
Japan
22 Nagoya
23 Tokyo
11
8
3
9
4
21
2
1
10
22
6
16
20
12
5
17
19
15
14
13
23
7
Infineon | Annual Report 2025
38
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Research and development
The internal management system at Infineon is designed to help implement Group
strategy and the related long-term financial targets. Accordingly, performance
indicators are used that enable profitable growth and efficient employment of capital
to be measured.
Overall, the achievement of our long-term financial targets will lead to a sustainable
increase in the value of Infineon by generating a permanent premium on the cost
of capital.
In this context, growth, profitability, liquidity and investment are all interdependent.
Profitability is required to finance operations internally and open up potential
opportunities for growth. Growth, in turn, requires continual investment in research
and development as well as manufacturing capacity, while enabling Infineon to
achieve leading market positions and generate economies of scale that contribute to
greater profitability. Employing financial resources efficiently is a critical factor in
achieving these goals.
Infineon deploys a comprehensive controlling system to manage its business and
achieve its strategic targets. The system involves the use of financial and operating
performance indicators. Information for controlling purposes is derived from
annual long-term planning, quarterly outlooks, and actual monthly data, as well as
more frequently available information such as the volume of orders received. This
knowledge enables management to base its decisions in a timely manner on sound
information about the current situation and future expected financial and operational
developments.
Sustainable business practices and the consideration of forward-thinking qualitative
factors are important for Infineon’s long-term success. As an enterprise very much
aware of its social and ecological responsibility, Infineon also takes non-financial
factors into account, mainly in relation to the environment and employee diversity.
See the report “Sustainability at Infineon” on our website
www.infineon.com/csr_reporting
As part of the process of managing business performance, management also attaches
great importance to ensuring that Infineon acts in strict compliance with legal
requirements and that it also complies with its internal corporate governance standards
(see the chapter “Corporate Governance”, p. 86 ff.).
Performance indicators
Principal performance indicators
In order to measure its success in implementing its strategy, Infineon uses the
following principal performance indicators:
– Revenue
– Segment Result Margin
– Free Cash Flow
– Adjusted Free Cash Flow
– Return on Capital Employed (RoCE)
These financial performance indicators are the cornerstones of the system for variable
remuneration. Most of the variable salary components pertaining to employees,
managers and the Management Board are linked to these performance indicators.
Internal management system
Infineon | Annual Report 2025
39
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Internal management system
Segment Result Margin and revenue
The Segment Result Margin is the key figure used by Infineon to measure operating
performance. The Segment Result Margin is the Segment Result expressed as a
percentage of revenue and is a measure of the profitability of revenue.
Segment Result is defined as follows:
Operating profit, adjusted for:
Specific impairment reversals (impairments)
Gains (losses) on earnings arising from restructuring and closures
Share-based payment
Acquisition-related depreciation/amortization and other expenses
Gains (losses) on sales of businesses or interests in subsidiaries
Other income and expenses
= Segment Result
For an analysis of the development of revenue and of the Segment Result Margin of
Infineon and of the individual segments in the 2025 fiscal year, see the chapter “2025
fiscal year”, p. 44 ff.
Free Cash Flow
Free Cash Flow measures the ability to generate sufficient cash flows to finance day-
to-day operations and to fund required investments out of the ongoing business. Free
Cash Flow is managed by Infineon at Group level only and not at segment level (for
an explanation of changes in Free Cash Flow during the 2025 fiscal year, see the chapter
“Review of liquidity”, p. 58).
The main factors influencing Free Cash Flow are a positive earnings trend combined
with effective management of inventories, trade accounts receivable and payable,
and capital expenditure.
Free Cash Flow at Infineon is defined as follows:
Cash flows from operating activities from continuing operations
+ Cash flows from investing activities from continuing operations
+ Payments for the acquisition of (proceeds from the sale of) financial investments, net
= Free Cash Flow
Adjusted Free Cash Flow
Adjusted Free Cash Flow (see the chapter “Group strategy”, p. 28) is defined as Free
Cash Flow adjusted for cash outflows for large investments in frontend buildings,
for cash inflows from related investment subsidies, and for major M&A transactions
(acquisitions and disposals) adjusted for cash acquired or disposed of (for an
explanation of changes in Free Cash Flow during the 2025 fiscal year, see the chapter
“Review of liquidity”, p. 58 f.). Adjusted Free Cash Flow is managed by Infineon at
Group level only and not at segment level.
Return on Capital Employed (RoCE)
The performance indicator RoCE measures the return on capital and shows the
correlation between profitability and the capital resources required to run the business
(for the mathematical derivation and development of RoCE in the 2025 fiscal year,
see the chapter “Review of financial condition”, p. 57). RoCE describes how efficiently
a company uses its resources and, through the comparison with cost of capital,
serves as an instrument for value-based corporate management. It is analyzed by
Infineon at Group level only and not at segment level.
Infineon | Annual Report 2025
40
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Internal management system
RoCE is defined as follows:
Profit (loss) from continuing operations, adjusted for:
Interest result
= Profit (loss) from continuing operations without interest result 1
Total assets, plus/minus:
– Cash and cash equivalents
– Financial investments
– Assets classified as held for sale
– Total current liabilities
+ Short-term financial debt and current maturities of long-term financial debt
+ Liabilities classified as held for sale
= Capital employed 2
RoCE 1 / 2
Selected supplementary performance indicators
The principal performance indicators are supplemented by the following additional
performance indicators.
Growth and profitability performance indicators
In order to analyze operating profitability in detail, the result and cost block components
of the Segment Result are considered. These are gross profit, research and development
expenses, and selling, general and administrative expenses, as well as their relation
to revenue.
These indicators are analyzed both at Group level and at segment level (for changes
in these indicators for the Group in the 2025 fiscal year, see the chapter “Review of
results of operations”, p. 51 ff.).
Liquidity performance indicators
A rolling cash flow forecast helps ensure that Infineon has appropriate levels of
liquidity at its disposal and an optimal capital structure. Liquidity is managed only at
Group level, and not at segment level, using the following performance indicators:
– Gross cash position: Cash and cash equivalents plus financial investments
– Net cash position: Gross cash position less short-term and long-term financial debt
– Investments: The total amount invested in property, plant and equipment and in
other intangible assets, including capitalized development costs
For an analysis of changes in these performance indicators during the 2025 fiscal year,
see the chapter “Review of liquidity”, p. 58 ff.
Non-financial performance indicators
Non-financial performance indicators at Infineon include CO2 emissions and indicators
relating to diversity.
At the 2020 Annual General Meeting, Infineon announced that it wanted to become
carbon-neutral by the end of the 2030 fiscal year.
The degree of target achievement for these non-financial performance indicators is
reflected in the remuneration of the Management Board (see the chapter “Remuneration
Report”, p. 90).
Actual and target values for performance indicators
The chapter “Outlook”, p. 65, contains a table comparing the actual values achieved
in the 2025 fiscal year for principal and selected supplementary performance indicators
with the values forecasted and the expectations for the 2026 fiscal year.
Infineon | Annual Report 2025
41
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Internal management system
Review of the
semiconductor
industry
42
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Review of the semiconductor industry
Infineon | Annual Report 2025
The global economy in the 2024
and 2025 calendar years
The global economy grew by 2.8 percent in the 2024 calendar year (
R01), which was
0.1 percentage point less than the previous year. Despite declining inflation rates
and the prospect of lower interest rates, consumer confidence remained subdued.
Consequently, economic growth was only moderate.
For the 2025 calendar year, experts at the International Monetary Fund (IMF) are
forecasting global economic growth of 2.6 percent (
R01). The slightly weaker
performance anticipated compared to the previous year is likely attributable to
increased uncertainty, particularly regarding trade policy. At times, an even sharper
decline in growth was expected, especially in the spring when the financial markets
were highly volatile. Geopolitical risks currently also remain exceptionally high.
The growth figures relate to market size, translated into U.S. dollars at market
exchange rates.
The semiconductor market in the 2025 fiscal year
In the 2025 fiscal year, global semiconductor revenue reached a volume of €657 billion.
Compared to a value of €556 billion for the 2024 fiscal year, this amounts to an
increase of 18 percent; in U.S. dollar terms, the increase was 20 percent (
R02). This
growth was primarily driven by sharply higher demand for AI data centers, which
in turn led to strong demand for AI processors, memories, and logic ICs in the area of
connectivity.
Revenue in the Infineon reference market (redefined in the 2025 fiscal year) as the semi
conductor market excluding DRAM and NAND flash memory chips, microprocessors,
graphics processors, and optoelectronics, rose 8 percent to €297 billion in the 2025
fiscal year, up from €275 billion in the 2024 fiscal year. In U.S. dollar terms, the increase
was 10 percent (
R02). Vastly different growth rates were seen across market
segments. For example, revenue in communications logic ICs increased by 28 percent
in the 2025 fiscal year, while growth in analog ICs was far less dynamic at 5 percent.
Demand for discrete semiconductors even declined, falling by 5 percent.
Market position
In the 2024 calendar year, Infineon ranked 11th in the global semiconductor market
with a market share of 2.4 percent. In the Infineon reference market, Infineon reached
fourth place globally in the 2024 calendar year, with a market share of 5.3 percent.
Infineon was thereby the top-ranked European semiconductor manufacturer in the 2024
calendar year, in both the overall semiconductor market and the Infineon reference
market (
R03). Data for the 2025 calendar year was not yet available at the time of
preparing this report.
Infineon | Annual Report 2025
43
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Review of the semiconductor industry
2025 fiscal year
Group
performance
44
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Group performance
Infineon | Annual Report 2025
Infineon met expectations in the 2025 fiscal year despite challenging macroeconomic
and geopolitical environments. The results underscore the resilience of the business
model.
The successfully completed 2025 fiscal year coincided with a prolonged downturn
across most of our target markets. End customers and distribution partners sharply
reduced their inventories to meet their targets. Geopolitical instability and tariff-
related disruptions caused them to be cautious about demand, which led to just-in-
time ordering patterns. In this environment, as anticipated, Infineon recorded a
slight downturn in revenue. Margins remained at a resilient level, supported by first
meaningful benefits from the structural improvement program “Step Up”, coming
in ahead of the anticipated timeline.
Details on segment performance are provided in the following chapter, “Segment
performance”, p. 46 ff.
Decline in Group revenue of 2 percent
In the 2025 fiscal year, Infineon generated Group revenue of €14,662 million. This
represents a decline of 2 percent compared with the previous year’s figure of
€14,955 million. Positive volume effects were offset by sales price reductions of
approximately the same magnitude. Negative currency effects were also recorded
in the reporting period.
Segment Result Margin of 17.5 percent
Infineon’s Segment Result declined by 18 percent, from €3,105 million to €2,560 million
in the 2025 fiscal year. In viewing the result, several partially counteractive effects are
to be taken into account.
Higher sales volumes and the measures initiated in the previous year as part of the
“Step Up” structural improvement program had a positive impact on the Segment
Result.
Offsetting the positive effects were, above all, sales price reductions and negative
currency effects. Compared to the previous year, higher underutilization costs and
lower grants and subsidies recognized in profit or loss also negatively affected the
Segment Result.
The Segment Result Margin, at 17.5 percent, was below the previous year’s level of
20.8 percent.
Details on Infineon’s other principal performance indicators – RoCE, Free Cash Flow,
and adjusted Free Cash Flow – and other performance indicators can be found in the
chapters “Review of results of operations”, p. 51 ff., “Review of financial condition”,
p. 55 ff., and “Review of liquidity”, p. 58 ff.
Infineon | Annual Report 2025
45
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Group performance
Segment
performance
46
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Segment performance
Infineon | Annual Report 2025
Review of the Automotive segment
in the 2025 fiscal year
In the Automotive segment, Infineon generated revenue of €7,402 million in the 2025
fiscal year. This represents a decline of 4 percent compared with the previous year’s
revenue of €7,716 million, see
C04. The Automotive segment accounted for 50 percent
of Infineon’s total Group revenue. The 2025 fiscal year was challenging, marked by
ongoing geopolitical conflicts and volatile trade policies. Uncertainties surrounding
the current tariff regulations led many of our customers to adopt more cautious
production plans. The 2025 fiscal year was also impacted by substantial inventory
reductions at many key customers and by negative currency effects.
The performance of e-mobility in some regions was held back by uncertainty regard-
ing regulatory developments. Despite this challenging environment, Infineon achieved
growth in certain product groups, particularly outside the North American region.
Our PROFET™ family of intelligent power switches and microcontroller families were
key contributors to this performance. Software-defined vehicle architecture is one of
the key themes in the automotive industry, for both passenger cars and commercial
vehicles. Software is becoming the heart of the vehicle. Above all else, this delivers
greater flexibility. New driving features for assisted and automated driving and
enhanced safety functions can be delivered directly to the vehicle. Errors can be resolved
without a visit to the repair shop. To support the operation of these vehicles, Infineon’s
product portfolio addresses the four relevant core areas: computing performance,
connectivity, data security, and energy distribution. The acquisition of the Automotive
Ethernet business from U.S.-based Marvell Technology enables us to offer a compre-
hensive portfolio, perfectly complementing our AURIX™ microcontroller family with
high-performance communication solutions.
The shift made by many manufacturers to new vehicle architectures, expanded driver
assistance systems, and vehicle electrification drove ensured strong demand for
our AURIX™, TRAVEO™, and PSoC™ microcontroller families. Our AURIX™ family was
specifically designed for embedded control systems featuring the highest safety
standards. This is why it is not only used in driver assistance systems but also in engine
control, safety systems, and high-speed on-board networks. The critical features include
real-time capability, high computing performance, and low power consumption.
Our TRAVEO™ family is benefiting from the trend toward digital instrument and display
systems.
Infineon is also benefiting from the fact that the areas of electromobility, software-
defined vehicle architectures, and mobility services demand more powerful software.
Updating this software must be possible throughout the vehicle’s lifecycle. This
flexibility, coupled with the higher safety requirements for assisted and automated
driving, necessitates a new architecture for on-board networks for data transmission
and energy distribution. Specifically for the latter, specialized, safety-certified semi-
conductor solutions are being used to replace the traditional fuses and relays. To
meet this need, Infineon’s PROFET™ family offers a broad portfolio of intelligent power
switches that enable decentralized and configurable energy distribution and, at the
same time, meet the highest safety standards.
The Segment Result for the Automotive segment in the 2025 fiscal year totaled
€1,529 million, amounting to a decline of 24 percent compared with the previous
year’s Segment Result of €2,021 million. Relative to revenue, the Segment Result
Margin was 20.7 percent (previous year: 26.2 percent), see
C04. The decline in the
Segment Result Margin was primarily due to higher underutilization costs and price
adjustments.
ATV
C04 Revenue and Segment Result of the Automotive segment1
€ in millions
Revenue
Segment Result
Segment Result Margin
7,402
1,529
7,716
2,021
2025
2024
20.7 %
26.2 %
1 Figures for the previous year have been adjusted (for details, see note 29 to the Consolidated Financial Statements).
Infineon | Annual Report 2025
47
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Segment performance
Review of the Green Industrial Power segment
in the 2025 fiscal year
In the Green Industrial Power segment, Infineon generated revenue of €1,631 million
in the 2025 fiscal year, down from €1,934 million the previous year, see
C05. The
16 percent revenue decline was driven by lower volumes and declining prices amid a
difficult market environment. The segment accounted for 11 percent of Group revenue.
Generating, transmitting, and storing clean energy is a critical prerequisite for achieving
global CO₂ emissions targets. With its strong market position in power infrastructure,
Infineon is positioned to benefit from this megatrend. For many of the world’s regions,
solar and wind energy have become the most cost-effective sources of power genera-
tion. As a result, capacity is being continuously expanded, often through large-scale
installations. Consequently, energy grids and storage infrastructure must also be
modernized and expanded.
Due to continuing customer inventory corrections during the 2025 fiscal year
– particularly in the photovoltaic sector – revenue in the renewable energy sector in
this previous fiscal year declined overall.
Revenue from network infrastructure remained stable compared to the previous year.
Following a weaker first half-year, revenue rose significantly as the year progressed.
Products for electric vehicle charging stations and power grid applications, in particular,
generated significantly higher revenue in the second half of the fiscal year than in the
first. The area of energy storage recorded steady revenue growth throughout the
entire fiscal year.
The area of electromobility for buses, trucks, and agricultural vehicles experienced
revenue declines in the previous fiscal year, while revenue from products for high-
speed trains increased.
Demand for power semiconductors in automation and electric drives remained weak
in the 2025 fiscal year, posting a further year-on-year revenue decline. The key factors
responsible were high customer inventory levels and a globally weak economic
environment, which discouraged investment in additional production capacity.
Demand also declined in the 2025 fiscal year in the home appliances and air condi-
tioning sectors. Revenue from industrial air conditioning systems stabilized at a low
level in the second half of the fiscal year.
The Segment Result reached €201 million in the 2025 fiscal year, representing a
52 percent decrease compared to €418 million in the previous year. The Segment
Result Margin fell from 21.6 percent in the previous year to 12.3 percent. This decline
was mainly driven by lower volumes and a related rise in underutilization costs,
negative pricing effects, and the weaker performance of the U.S. dollar.
GIP
C05 Revenue and Segment Result of the Green Industrial Power segment
€ in millions
Revenue
Segment Result
Segment Result Margin
1,631
1,934
201
418
2025
2024
12.3 %
21.6 %
Infineon | Annual Report 2025
48
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Segment performance
Review of the Power & Sensor Systems segment
in the 2025 fiscal year
In the Power & Sensor Systems segment, Infineon generated revenue of €4,208 million
in the 2025 fiscal year. The increase compared to the previous year’s revenue
of €3,795 million amounted to 11 percent, see
C06. The segment contributed
29 percent to Group revenue.
The 2025 fiscal year saw a modest general market recovery. Demand related to artificial
intelligence applications was strong and served as a clear growth driver. The traditional
data center and smartphone end markets also developed positively year-over-year.
Consumer-related business areas remained stable, while industrial applications in
the Power & Sensor Systems segment declined.
Data centers recorded another increase in revenue in the 2025 fiscal year. The strongest
revenue driver was power supply components for servers used in artificial intelligence.
Revenue in this area nearly tripled in the 2025 fiscal year, from around €250 million in
the 2024 fiscal year to over €700 million in the 2025 fiscal year. The increase in demand
is expected to keep momentum in the years ahead, as cloud service providers continue
to invest heavily in artificial intelligence. In the telecommunications sector, demand
remained stable overall.
Business with components for smartphones and other mobile devices picked up
during the previous fiscal year, resulting in higher revenue. The MEMS (micro-electro-
mechanical system) microphones business was a key contributor to this performance.
Other areas of consumer electronics, including electronic devices of all types, such
as PCs, laptops, notebooks, gaming consoles, and televisions, showed some initial
signs of recovery in the 2025 fiscal year, albeit starting from a low base.
The improvement in the Segment Result and Segment Result Margin was largely driven
by the rise in revenue. The Segment Result reached €683 million in the 2025 fiscal
year, compared to €482 million in the 2024 fiscal year, amounting to a 42 percent
increase. The Segment Result Margin was 16.2 percent compared to 12.7 percent in
the previous year, see
C06.
PSS
C06 Revenue and Segment Result of the Power & Sensor Systems segment1
€ in millions
Revenue
Segment Result
Segment Result Margin
4,208
3,795
683
482
2025
2024
16.2 %
12.7 %
1 Figures for the previous year have been adjusted (for details, see note 29 to the Consolidated Financial Statements).
Infineon | Annual Report 2025
49
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Segment performance
Review of the Connected Secure Systems
segment in the 2025 fiscal year
In the Connected Secure Systems segment, Infineon generated revenue of €1,418 million
in the 2025 fiscal year. This represents a decline of 6 percent compared with the
previous year’s revenue of €1,506 million. The segment accounted for 10 percent of
Group revenue.
The revenue decline was attributable to several factors. Continued high customer
inventory levels and a generally subdued macroeconomic environment dampened
demand.
The demand for connectivity solutions and microcontrollers fell due to a further
deteriorating economic climate and restrained consumer spending. Despite this, the
digitalization of applications and the integration of AI functionality in the context
of IoT remain one of our long-term growth areas. This growth is being driven by the
increasing penetration of end devices, particularly in industrial, consumer, and
automotive applications.
The trend toward contactless and cashless payment continues. Market growth
however continues to be held back by high inventory levels throughout the value
chain. Embedded SIM (eSIM) solutions for automotive and industrial applications
took a different turn, recording strong revenue growth compared to the previous
year. Over the long term, the continued adoption of eSIM technology – especially
in consumer applications – presents significant growth opportunities.
Global travel activity remained high during the previous fiscal year. In addition, key
identification document projects and an improved product mix contributed to stable
revenue in this area. Amid the AI boom, increasing security demands in data centers
led to robust demand for our embedded security solutions.
Due to the weak revenue performance, both the Segment Result and Segment Result
Margin came under pressure. The Segment Result in the 2025 fiscal year totaled
€155 million, amounting to a decline of 15 percent compared with the previous year’s
Segment Result of €182 million. The Segment Result Margin in the reporting year
equaled 10.9 percent (previous year: 12.1 percent), see
C07.
CSS
C07 Revenue and Segment Result of the Connected Secure Systems segment
€ in millions
Revenue
Segment Result
Segment Result Margin
1,418
155
1,506
182
2025
2024
10.9 %
12.1 %
Infineon | Annual Report 2025
50
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Segment performance
Review of results of operations
Change
€ in millions, except earnings per share
2025
2024
absolute
in %
Revenue
14,662
14,955
(293)
(2)
Cost of goods sold 1
(8,909)
(8,710)
(199)
2
Gross profit
5,753
6,245
(492)
(8)
Research and development expenses 1
(2,227)
(2,161)
(66)
3
Selling, general and administrative expenses
(1,582)
(1,554)
(28)
2
Other operating income and expenses, net
(429)
(340)
(89)
26
Operating profit (loss)
1,515
2,190
(675)
(31)
Financial result
(financial income and expenses, net)
(150)
(43)
(107)
–––
Share of profit (loss) of associates and joint
ventures accounted for using the equity method
10
11
(1)
(9)
Income tax
(370)
(378)
8
(2)
Profit (loss) from continuing operations
1,005
1,780
(775)
(44)
Profit (loss) from discontinued operations,
net of income taxes
10
(479)
489
+++
Profit (loss) for the period
1,015
1,301
(286)
(22)
Basic earnings per share (in euro)
0.77
0.98
(0.21)
(21)
Diluted earnings per share (in euro)
0.76
0.97
(0.21)
(22)
Adjusted earnings per share (in euro)
from continuing operations – diluted
1.39
1.87
(0.48)
(26)
1 Figures for the previous year have been adjusted (for details see note 1 to the Consolidated Financial Statements,
p. 98 f.).
Higher volumes outweighed by sales price reductions
and negative currency effects
Revenue in the 2025 fiscal year amounted to €14,662 million (previous year:
€14,955 million). Positive volume effects were offset by sales price reductions of
approximately the same magnitude. Negative currency effects were also recorded in
the reporting period. A considerable portion of the 2025 fiscal year’s revenue was
generated in foreign currencies, primarily in U.S. dollars. The average euro/U.S. dollar
exchange rate for the year changed from approximately 1.09 in the previous year to
1.11 in the 2025 fiscal year.
Revenue by segment is presented below.
Details on the performance of the segments can be found in the chapter “Segment
performance”, p. 46 ff.
C08 Revenue by segment
€ in millions
7,402
1,934
3,795 4,208
1,418
3
1,506
4
1,631
7,716
2024
2025
Green
Industrial Power
Automotive1
Power & Sensor
Systems1
Connected
Secure Systems
Other Operating
Segments
1 Figures for the previous year have been adjusted (for details, see note 29 to the Consolidated Financial Statements).
Infineon | Annual Report 2025
51
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of results of operations
Regional distribution of revenue
The regional distribution of revenue is shown in the table below:
€ in millions, except percentages
2025
2024
Europe, Middle East, Africa
3,486
24%
3,865
26%
therein: Germany
1,437
10%
1,617
11%
Asia-Pacific (excluding Japan, Greater China)
2,449
17%
2,461
17%
Greater China 1
5,579
38%
5,130
34%
therein: Mainland China, Hong Kong
4,212
29%
4,058
27%
Japan
1,314
9%
1,507
10%
Americas
1,834
12%
1,992
13%
therein: USA
1,506
10%
1,627
11%
Total
14,662
100%
14,955
100%
1 Greater China comprises Mainland China, Hong Kong and Taiwan.
Cost of goods sold increases at a lower rate
than price-adjusted revenue
Change
€ in millions, except percentages
2025
2024
absolute
in %
Cost of goods sold 1
8,909
8,710
199
2
As percentage of revenue
60.8%
58.2%
260 bp
Gross profit
5,753
6,245
(492)
(8)
Gross margin
39.2%
41.8%
(260) bp
1 Figures for the previous year have been adjusted (for details see note 1 to the Consolidated Financial Statements,
p. 98 f.).
Cost of goods sold in the reporting period amounted to €8,909 million, exceeding the
level of the previous year (€8,710 million). Excluding the negative price effects in
revenue, the increase in cost of goods sold was lower than the volume-driven increase
in revenue. This was mainly attributable to measures initiated in the previous year
under the “Step Up” structural improvement program and positive currency effects.
Cost of goods sold also contained positive effects from inventory management
combined with higher sales volumes. These positive effects however were offset by
the increase in underutilization costs.
Acquisition-related expenses of €267 million (previous year: €261 million) were also
recognized in cost of goods sold. These expenses were primarily in connection with the
acquisition of Cypress and comprise amortization of fair value adjustments totaling
€262 million (previous year: €255 million) identified in the course of purchase price
allocations, as well as other acquisition-related expenses.
Gross profit (revenue less cost of goods sold) in the reporting period amounted to
€5,753 million, which was 8 percent below the previous year’s figure of €6,245 million.
The gross margin declined accordingly from 41.8 percent in the 2024 fiscal year to
39.2 percent in the 2025 fiscal year.
Operating expenses above previous year’s level
Operating expenses (research and development expenses, and selling, general and
administrative expenses) in the 2025 fiscal year amounted to €3,809 million and were
slightly higher than the previous year’s level of €3,715 million. They accounted for
26.0 percent of revenue (previous year: 24.8 percent).
Research and development expenses
Change
€ in millions, except percentages
2025
2024
absolute
in %
Research and development expenses, gross 1
2,657
2,625
32
1
Minus:
Grants received
(179)
(215)
36
(17)
Capitalized development costs
(251)
(249)
(2)
1
Research and development expenses
2,227
2,161
66
3
As percentage of revenue
15.2%
14.5%
70 bp
1 Figures for the previous year have been adjusted (for details see note 1 to the Consolidated Financial Statements,
p. 98 f.).
Infineon | Annual Report 2025
52
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of results of operations
Research and development expenses totaled €2,227 million in the 2025 fiscal year,
rising 3 percent compared to €2,161 million in the previous year. Infineon continued
to consistently advance its research and development efforts, resulting in an increase
the number of employees engaged in this field. As of 30 September 2025, a total of
13,998 employees were working in research and development (30 September 2024:
13,253), representing an increase of 6 percent. Among other factors, this rise was
due to the acquisition of Marvell’s Automotive Ethernet business, which brought
additional research and development personnel. In addition, the subsidies and
grants received during the reporting period were lower than in the previous year.
Countering this rise were the measures initiated in the previous year under the
„Step Up“ structural improvement program.
Expressed as a percentage of revenue, research and development expenses amounted
to 15.2 percent in the 2025 fiscal year, exceeding the level of 14.5 percent in the
previous year.
Selling, general and administrative expenses
Change
€ in millions, except percentages
2025
2024
absolute
in %
Selling, general and administrative expenses
1,582
1,554
28
2
As percentage of revenue
10.8%
10.4%
40 bp
Selling, general and administrative expenses amounted to €1,582 million in the 2025
fiscal year, exceeding the previous year’s figure. The percentage increase in selling
expenses and general and administrative expenses was below that of price-adjusted
revenue. Once again, the measures initiated in the previous year under the “Step Up”
structural improvement program had a positive effect.
Earnings effects from purchase price allocations and acquisition-related expenses
recognized under selling, general and administrative expenses totaled €132 million in
the reporting period (previous year: €142 million).
Selling, general and administrative expenses as a percentage of revenue equaled
10.8 percent in the 2025 fiscal year, remaining roughly at the previous year’s level
(10.4 percent).
Net amount of other operating income and expenses
affected by special items
The net amount of other operating income and expenses in the 2025 fiscal year was
a net expense of €429 million, compared with a net expense of €340 million in the
2024 fiscal year (an increase in the net expense of €89 million). This includes impairment
losses on other intangible assets and property, plant and equipment, which totaled
€270 million in the 2025 fiscal year (previous year: €84 million). Of this amount,
€149 million related to impairment losses associated with the sale of the 200-millimeter
production facility in Austin (Texas, USA) to SkyWater Technology, Inc. (“SkyWater”).
See note 7 to the Consolidated Financial Statements, p. 120.
The net expense of €429 million also includes restructuring and closure expenses
of €139 million (previous year: €232 million) that primarily relate to the “Step Up”
structural improvement program.
Infineon | Annual Report 2025
53
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of results of operations
Financial result declines due to higher interest expenses
The financial result was a net financial loss of €150 million in the 2025 fiscal year
(previous year: net financial loss of €43 million). The decline was mainly driven by
higher interest expenses resulting from increased financial debt.
For further details on the composition of the financial result and of financial debt,
see notes 4, p. 115 and 16, p. 130 f., to the Consolidated Financial Statements.
Effective tax rate of 26.9 percent
The income tax expense in the 2025 fiscal year was €370 million (previous year:
€378 million). Based on the profit before income taxes of €1,375 million (previous
year: €2,158 million), the tax rate for the reporting period was 26.9 percent (previous
year: 17.5 percent).
The significant increase in the tax rate was partly due to valuation effects relating to
deferred taxes. For further details on the income tax expense, see note 6 to the
Consolidated Financial Statements, p. 117 ff.
Result from discontinued operations
The result from discontinued operations less the income tax expense improved
by €489 million in the reporting period to €10 million (previous year: net loss of
€479 million). The previous year was affected by the conclusion of the legal dispute
concerning the Qimonda insolvency through a court-approved settlement (see also
note 7 to the Consolidated Financial Statements, p. 121).
Decrease in profit for the period and earnings per share
After deducting income taxes and adjusting for the profit/loss from discontinued
operations, Infineon recorded a profit for the period of €1,015 million in the 2025
fiscal year (previous year: €1,301 million).
The lower profit for the period resulted in a corresponding decrease in earnings
per share.
Basic earnings per share amounted to €0.77 (previous year: €0.98) and diluted
earnings per share €0.76 (previous year: €0.97) in the reporting period.
The earnings per share calculation under IFRS® Accounting Standards is provided in
note 8 to the Consolidated Financial Statements, p. 121.
Decrease in adjusted earnings per share
Earnings per share in accordance with IFRS Accounting Standards are affected by
purchase price allocation effects from acquisitions (particularly Cypress) as well as
other special items (notably those related to the „Step Up“ structural improvement
program). To improve comparability of operating performance over time, Infineon
calculates adjusted earnings per share (diluted). Adjusted profit (loss) for the period
and adjusted earnings per share (diluted) are not substitutes for, or superior to,
IFRS-based profit (loss) for the period or earnings per share (diluted) but should be
regarded solely as supplementary information.
Infineon | Annual Report 2025
54
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of results of operations
Adjusted earnings per share (diluted) declined from €1.87 in the 2024 fiscal year to
€1.39 per share and is calculated as follows:
Change
€ in millions (unless otherwise stated)
2025
2024
absolute
in %
Profit (loss) from continuing operations – diluted
1,005
1,780
(775)
(44)
Compensation of hybrid capital investors 1
(18)
(29)
11
(38)
Profit (loss) from continuing operations
attributable to shareholders of
Infineon Technologies AG – diluted
987
1,751
(764)
(44)
Plus/minus:
Certain impairments (reversal of impairments)
249
103
146
+++
Losses (gains) on earnings
of restructuring and closures
141
237
(96)
(41)
Share-based payment
188
130
58
45
Acquisition-related depreciation/
amortization and other expenses
408
411
(3)
(1)
Losses (gains) on sales of businesses
or interests in subsidiaries
(6)
5
(11)
–––
Other income and expenses
65
29
36
+++
Acquisition-related expenses
within financial result
9
–
9
+++
Tax effect on adjustments
(222)
(226)
4
(2)
Adjusted profit (loss) for the
period from continuing operations
attributable to shareholders of
Infineon Technologies AG – diluted
1,819
2,440
(621)
(25)
Weighted-average number of shares
outstanding (in millions) – diluted
1,307
1,305
2
–
Adjusted earnings per share (in euro)
from continuing operations – diluted 2
1.39
1.87
(0.48)
(26)
1 Including the cumulative tax effect.
2 The calculation of the adjusted earnings per share is based on unrounded figures.
Review of financial condition
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
ASSETS
Cash and cash equivalents
and financial investments
2,102
2,201
(99)
(4)
Trade receivables
2,249
2,250
(1)
–
Inventories
4,141
3,990
151
4
Property, plant and equipment
8,142
8,002
140
2
Goodwill
7,849
6,797
1,052
15
Other intangible assets
3,274
2,820
454
16
Remaining current and non-current assets
2,713
2,579
134
5
Total assets
30,470
28,639
1,831
6
LIABILITIES AND EQUITY
Trade payables
2,011
1,990
21
1
Financial debt
6,829
4,811
2,018
42
Pensions and similar commitments
212
303
(91)
(30)
Remaining current and non-current
liabilities and provisions
4,367
4,316
51
1
Equity
17,051
17,219
(168)
(1)
Total liabilities and equity
30,470
28,639
1,831
6
Inventory levels increase year-on-year
As of 30 September 2025, inventories totaled €4,141 million, an increase of €151 million
compared to their level on 30 September 2024 (€3,990 million). Inventory levels rose
at the beginning of the reporting period, mainly due to customer inventory adjustments,
but later declined, especially in the fourth quarter.
Infineon | Annual Report 2025
55
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of results of operations | Review of financial condition
Expansion in frontend manufacturing leads to increase
in property, plant and equipment
Property, plant and equipment increased by €140 million to €8,142 million as of
30 September 2025. Additions of €1,742 million were set against depreciation of
€1,283 million. The focus of investments in the 2025 fiscal year continued to be the
expansion of the Smart Power Fab in Dresden (Germany), the ramp-up of volume
production for SiC at the Kulim site (Malaysia), and strengthening frontend manu-
facturing in Villach (Austria). Impairment losses of €120 million related primarily to
advance payments and to equipment and machinery as part of the restructuring of
the production process and portfolio under the „Step Up“ structural improvement
program (see also note 4 to the Consolidated Financial Statements, p. 114). Other
factors affecting the figure for property, plant and equipment were negative currency
effects as well as disposals and divestments (see note 7 to the Consolidated Financial
Statements, p. 120 f.).
Acquisition of Automotive Ethernet business leads to
increase in goodwill
Goodwill increased by €1,052 million to €7,849 million as of 30 September 2025.
The increase was primarily the result of the acquisition of Marvell’s Automotive
Ethernet business. As part of the purchase price allocation, goodwill of €1,364 million
(originally denominated in U.S. dollars) was recognized as of the acquisition date.
Negative currency effects, mainly attributable to the weaker U.S. dollar compared to
30 September 2024, reduced goodwill by €312 million. More information about the
acquisition can be found in note 14 to the Consolidated Financial Statements, p. 126 ff.
Acquisition-related increase in other intangible assets
Other intangible assets increased by €454 million to €3,274 million as of 30 September
2025. Additions during the reporting period totaled €1,067 million. The main compo-
nents of this figure were an amount of €773 million attributable to the acquisition
of Marvell’s Automotive Ethernet business (see note 3 to the Consolidated Financial
Statements, p. 112 f. ) and capitalized development costs. The impact of additions
was offset by amortization of €547 million and negative currency effects of €175 million.
Increase in financial debt due to acquisition financing
of Marvell’s Automotive Ethernet business
Financial debt at the end of the reporting period amounted to €6,829 million, signifi-
cantly higher than the figure at 30 September 2024 of €4,811 million. Contributing to
this increase was the full utilization in the 2025 fiscal year of the acquisition financing
(€1 billion and US$1 billion) arranged to fund the purchase price for Marvell’s Automo-
tive Ethernet business. A further contributor was the issue of a new corporate bond
with a nominal value of €750 million under the EMTN (European Medium Term Notes)
program. The scheduled repayment of a €500 million bond and the weaker U.S. dollar
compared to 30 September 2024 had an offsetting effect. More information about
financial debt can be found in note 16 to the Consolidated Financial Statements,
p. 130 f.
U.S. dollar
Euro
C09 Financial debt by currency
€ in millions
2024
2025
36 %
64 %
6,829
35 %
65 %
4,811
Infineon | Annual Report 2025
56
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of financial condition
Slight decrease in equity
Equity declined by €168 million to €17,051 million as of 30 September 2025. Equity
was reduced by the repayment of €600 million for the first tranche of hybrid capital,
redeemed in accordance with the terms and conditions on 27 January 2025, as well as
the distribution of the cash dividend for the 2024 fiscal year of €455 million. Currency
effects of €366 million recognized in other comprehensive income also had the effect
of reducing equity. The profit for the period of €1,015 million in the 2025 fiscal year,
on the other hand, had a positive effect on equity (see also the Consolidated Statement
of Changes in Equity, p. 96 f., and note 20 to the Consolidated Financial Statements,
p. 138 ff.).
As of 30 September 2025, the equity ratio was 56.0 percent based on total assets of
€30,470 million (30 September 2024: 60.1 percent).
Significant decrease in RoCE
In the 2025 fiscal year, profit from continuing operations without interest result
decreased by €688 million to €1,166 million (previous year: €1,854 million). This
decline was primarily due to sales price reductions and an increase in underutilization
costs (see chapter “Review of results of operations”, p. 51 ff.). Capital employed, in
contrast, rose by €1,810 million to €23,602 million as of 30 September 2025, primarily
due to the acquisition of Marvell’s Automotive Ethernet business.
As a result, Return on Capital Employed (RoCE) decreased from 8.5 percent in the
previous year to 4.9 percent in the reporting period.
RoCE for the 2025 and 2024 fiscal years was calculated as follows:
Change
€ in millions, except percentages
2025
2024
absolute
in %
Profit (loss) from continuing operations,
adjusted for:
1,005
1,780
(775)
(44)
Interest result
(161)
(74)
(87)
–––
Profit (loss) from continuing operations
without interest result 1
1,166
1,854
(688)
(37)
Total assets
30,470
28,639
1,831
6
Plus/minus:
Cash and cash equivalents
(1,356)
(1,806)
450
(25)
Financial investments
(746)
(395)
(351)
89
Assets classified as held for sale
(45)
–
(45)
–––
Total current liabilities
(5,784)
(5,146)
(638)
12
Short-term financial debt and current
maturities of long-term financial debt
1,047
500
547
+++
Liabilities classified as held for sale
16
–
16
+++
Capital employed 2
23,602
21,792
1,810
8
RoCE 1 / 2
4.9%
8.5%
(360) bp
Infineon | Annual Report 2025
57
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of financial condition
Review of liquidity
Cash flows
Change
€ in millions
2025
2024
absolute
in %
Cash flows from operating activities
from continuing operations
3,178
3,541
(363)
(10)
Cash flows from investing activities
(4,574)
(2,167)
(2,407)
–––
Cash flows from financing activities
920
(615)
1,535
+++
Cash flows from operating activities
from discontinued operations
39
(761)
800
+++
Cash-relevant change in
cash and cash equivalents
(437)
(2)
(435)
–––
Currency effects on cash and cash equivalents
(7)
(12)
5
(42)
Change in cash and cash equivalents
(444)
(14)
(430)
–––
Cash flows from operating activities from continuing operations (referred to in the
following as “operating cash flow”) decreased by €363 million to €3,178 million. This
decline was driven by several, partly counteracting effects:
Operating cash flow in the previous year was positively influenced by high customer
prepayments (“deposits”), which declined significantly in the reporting period. In
addition, operating cash flow in the 2025 fiscal year was negatively impacted by cash
outflows under the “Step Up” structural improvement program, although this could
be partially offset by a continued improvement in the management of working capital.
A compensation payment from a customer in the mid-double-digit million euro range
also had a positive impact on operating cash flow.
Cash outflows from investing activities in the 2025 fiscal year increased by €2,407 million
to €4,574 million. This increase resulted primarily from the purchase price payment
of €2,180 million for the acquisition of Marvell’s Automotive Ethernet business (see
note 3 to the Consolidated Financial Statements, p. 112 f.).
Payments for property, plant and equipment and other intangible assets amounted
to €2,094 million during the reporting period (previous year: €2,719 million). These
figures include higher year-on-year cash inflows from subsidies and grants. Further
information on investments in the 2025 fiscal year can be found in the chapter “Review
of financial condition”.
Net cash outflows from the purchase and sale of financial investments totaled
€345 million in the 2025 fiscal year (previous year: net cash inflows of €1,351 million).
Cash inflows from financing activities totaled €920 million in the reporting period
(previous year: cash outflows of €615 million). The net proceeds were the result of
several, in some cases opposing, effects: net cash inflows of €1,505 million (previous
year: net cash inflows of €177 million) from the issue and repayment of current
and non-current financial debt, and cash outflows due to the dividend payment of
€455 million (previous year: €456 million). Cash flows from financing activities also
included payments totaling €8 million to repurchase own shares (previous year:
€233 million; see note 20 to the Consolidated Financial Statements, p. 138 ff.).
The change in cash flows from operating activities from discontinued operations
resulted from the conclusion of the legal dispute concerning the Qimonda insolvency
through a court-approved settlement in the previous year (see also note 7 to the
Consolidated Financial Statements, p. 121).
Marked decline in Free Cash Flow due to acquisition of Marvell’s
Automotive Ethernet business; adjusted Free Cash Flow at
12.3 percent of revenue
Infineon reports the Free Cash Flow figure, defined as cash flows from operating
activities and cash flows from investing activities, both from continuing operations,
after adjusting for cash flows from the purchase and sale of financial investments.
Free Cash Flow serves as an additional performance indicator since a portion of
Infineon’s liquidity is held in the form of financial investments. This does not imply
that the Free Cash Flow calculated in this way, can be used for other expenditure,
since dividends, debt service obligations, and other fixed payments have not yet
been deducted.
Infineon | Annual Report 2025
58
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of liquidity
Adjusted Free Cash Flow is part of Infineon’s strategic objectives (see the chapter
“Group strategy”, p. 28) and is defined as Free Cash Flow adjusted for cash outflows
for large investments in frontend buildings, cash inflows from related investment
subsidies, and major M&A transactions (acquisitions and disposals) adjusted for cash
acquired or disposed of.
Both figures should not be considered as substitutes or superior performance
indicators, but should be seen as additional information along with the cash flow
presented in the Consolidated Statement of Cash Flows, other liquidity performance
indicators and other performance indicators determined in accordance with IFRS
Accounting Standards. Free Cash Flow and adjusted Free Cash Flow are derived from
the Consolidated Statement of Cash Flows as follows:
Change
€ in millions
2025
2024
absolute
in %
Cash flows from operating activities 1
3,178
3,541
(363)
(10)
Cash flows from investing activities 1
(4,574)
(2,167)
(2,407)
–––
Payments for the acquisition of (proceeds
from sales of) financial investments, net
345
(1,351)
1,696
+++
Free Cash Flow
(1,051)
23
(1,074)
–––
Plus:
Cash outflows for investments in large
frontend buildings after deduction of
cash inflows for related investment subsidies
584
869
(285)
(33)
Cash outflows for major M&A transactions,
adjusted for cash acquired or disposed of
2,270
798
1,472
+++
Adjusted Free Cash Flow
1,803
1,690
113
7
Percentage of revenue
12.3%
11.3%
100 bp
1 From continuing operations.
Gross cash position and net cash position
The following table shows the gross and net cash positions. Since Infineon holds some
of its liquid funds in the form of financial investments that are not classified as cash
and cash equivalents under IFRS Accounting Standards, it reports both the gross and
net cash positions to provide investors with a clearer picture of its overall liquidity
situation. The gross and net cash positions are derived from the Consolidated Statement
of Financial Position as follows:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Cash and cash equivalents
1,356
1,806
(450)
(25)
Financial investments
746
395
351
89
Gross cash position
2,102
2,201
(99)
(4)
Minus:
Short-term financial debt and current
portion of long-term financial debt
1,047
500
547
+++
Long-term financial debt
5,782
4,311
1,471
34
Gross financial debt
6,829
4,811
2,018
42
Net cash position
(4,727)
(2,610)
(2,117)
81
With revenue of €14,662 million, the ratio of the gross cash position to revenue was
14.3 percent as of 30 September 2025 (30 September 2024: 14.7 percent).
Considering the available financial resources, including current cash on hand and
future available liquidity, as well as currently available credit lines of €5,590 million
(previous year: €2,239 million; see note 16 to the Consolidated Financial Statements,
p. 130 f.), Infineon estimates it will be able to meet its anticipated capital require-
ments for the 2026 fiscal year. Of the total available credit lines of €5,590 million,
€3,738 million remain undrawn. The anticipated capital requirements include the
repayment of maturing financial debt, as well as other financial obligations, such as
Infineon | Annual Report 2025
59
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of liquidity
those arising from orders already placed for ongoing or planned investment projects
in property, plant and equipment (see note 23 to the Consolidated Financial Statements,
p. 145). Investments planned for the 2026 fiscal year are described in the chapter
“Outlook.” Infineon also generally has the option of raising funds under the EMTN
program or through other financing instruments to meet its capital requirements.
Infineon is a party to two financing agreements that contain a number of standard
covenants. These include a financial covenant (debt coverage ratio) that specifies a
defined ratio between an adjusted debt figure and an adjusted earnings figure (see
note 21 to the Consolidated Financial Statements, p. 141 f.).
Infineon’s treasury principles and structure
Infineon’s Group Treasury is guided by the principle of ensuring the Group’s financial
flexibility based on a solid capital structure. The foremost objective is to maintain
adequate liquidity to finance ongoing business operations and to carry out planned
investments throughout all phases of the business cycle. We aim for a target level of
average annual gross liquidity of at least 10 percent of revenue.
Debt is generally intended to represent only a moderate portion of the financing mix
to ensure strategic flexibility at all times. The key objective is to preserve the investment
grade rating. In January 2025, S&P Global Ratings reaffirmed Infineon’s investment
grade rating of “BBB+” with a stable outlook. For more information on the type, and
maturity, currency, and interest structure of gross financial debt, see note 16 to the
Consolidated Financial Statements, p. 130 f.
These treasury principles define the Group-wide approach to all matters related to
liquidity and financing. It encompasses banking policy and strategy, the conclusion of
financing agreements, global liquidity and investment management, the management
of currency, interest rate, and selected commodity price risks, as well as the processing
of both external and intragroup cash flows.
In accordance with our treasury principles, we follow a highly centralized approach.
The Group Finance & Treasury department acts as the globally responsible unit for
the handling of all major financing and treasury tasks and processes.
Within the scope of centralized liquidity management, Infineon operates cash pool
structures, to the extent legally permitted and economically feasible, to ensure the
best possible allocation of available liquidity within the Group and reduce external
financing needs. Liquidity accumulated within the Group is invested centrally by the
Group Finance & Treasury department, based on a conservative investment strategy
in which preserving capital is prioritized over maximizing returns. Additional respon-
sibilities of the Group Finance & Treasury department include managing currency
and interest rate risks and hedging commodity price risks. For hedging purposes, we
employ the following derivative financial instruments in our current operations:
forward foreign currency contracts to reduce the impact of exchange rate fluctuations
(to the extent foreign currency cash flows are not offset within the Group) and com-
modity swaps to reduce price risks for expected purchases of gold. Derivative financial
instruments are not used for trading or speculation purposes. Further information
on derivative financial instruments and the management of financial risk is provided
in notes 27, p. 149 ff., and 28 to the Consolidated Financial Statements, p. 157 ff.
In addition, where legally permissible, all global financing activities and credit lines
are arranged, structured, and managed, either directly or indirectly, by the central
Group Finance & Treasury department according to our treasury principles.
The Treasury Committee, which meets quarterly, serves to review current financial
market developments and assess their potential impact on Infineon, as well as to
align on key liquidity, hedging, and financing topics. The committee comprises the
Chief Financial Officer and representatives from the Finance & Treasury, Accounting,
Controlling, and Tax departments.
Infineon | Annual Report 2025
60
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
2025 fiscal year
Review of liquidity
Basic information on shares
Share types
Ordinary registered shares in the form of shares
or American Depositary Shares (ADS)
with a notional value of €2 each (ADS to shares = 1:1)
Share capital
€2,611,842,274 (as of 30 September 2025),
€2,611,842,274 (as of 30 September 2024)
Shares issued ¹
1,305,921,137 (as of 30 September 2025),
1,305,921,137 (as of 30 September 2024)
Own shares
3,781,390 (as of 30 September 2025),
6,757,925 (as of 30 September 2024)
ISIN
WKN
DE0006231004
623100
Ticker symbol
IFX (share), IFNNY (ADS)
Bloomberg
Nasdaq IR Insight
IFX GY (Xetra trading system),
IFNNY US IFX-XE, IFNNY-PK
Listings
Shares: Frankfurt Stock Exchange (FSE)
Market capitalization 2
€43,231 million
(based on closing price of €33.20 as of 30 September 2025)
Daily average shares traded on Xetra
4,284,649 (in the 2025 fiscal year)
Trading in the USA
ADS, over-the-counter trading on the OTC market
(OTCQX International)
Market capitalization 2
US$50,888 million (based on closing price
of US$39.08 as of 30 September 2025)
Daily average ADS traded
345,165 (in the 2025 fiscal year)
Index membership (selected)
DAX 40
TecDAX
EURO STOXX 50
Dow Jones STOXX Europe 600
Dow Jones Euro STOXX TMI Technology Hardware & Equipment
Dow Jones Germany Titans 30
MSCI Germany
S&P Europe 350
Dow Jones Sustainability World Index
1 The number of shares issued includes own shares.
2 Calculation of market capitalization: (“shares issued” – “own shares”) * share price. The calculation is based on unrounded figures.
A full overview of other major indices in which the Infineon share is represented can be found on Infineon’s website at
www.infineon.com/cms/en/about-infineon/investor/infineon-share/#5
Basic information on bonds and
other financing instruments
1.125% Bond
from 24 June 2020
€750 million
due on 24 June 2026,
ISIN: XS2194283672
3.375% Bond
from 26 February 2024
€500 million
due on 26 February 2027,
ISIN: XS2767979052
1.625% Bond
from 24 June 2020
€750 million
due on 24 June 2029,
ISIN: XS2194283839
2.875% Bond
from 13 February 2025
€750 million
due on 13 February 2030,
ISIN: XS2996771767
2.000% Bond
from 24 June 2020
€650 million
due on 24 June 2032,
ISIN: XS2194192527
3.625% Hybrid Bond
from 1 October 2019
€600 million
first call date 1 January 2028,
ISIN: XS2056730679
U.S. Private Placement from 5 April 2016
US$350 million
due on 5 April 2026
U.S. Private Placement from 5 April 2016
US$235 million
due on 5 April 2028
U.S. Private Placement from 16 June 2021
US$350 million
due on 16 June 2027
U.S. Private Placement from 16 June 2021
US$350 million
due on 16 June 2029
U.S. Private Placement from 16 June 2021
US$350 million
due on 16 June 2031
U.S. Private Placement from 16 June 2021
US$250 million
due on 16 June 2033
Rating of S&P Global Ratings
since 13 February 2024: “BBB+”,
Outlook: “stable”
Infineon on the capital market
Infineon | Annual Report 2025
61
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon on the capital market
Share price performance
Infineon shares ended the 2025 fiscal year at a closing price of €33.20. This amounted
to a 6 percent increase over the closing price of €31.46 at the end of the 2024 fiscal year.
At the beginning of the fiscal year, Infineon shares initially rose, reaching their year
high of €38.66 at the end of February. Following the announcement of new tariffs in
the United States, stock markets experienced sharp declines. In early April, Infineon
shares recorded their fiscal year low of €24.35. Equity markets then experienced a
recovery, and Infineon shares were able to close the fiscal year at €33.20. Infineon
shares underperformed the benchmark indices for the fiscal year. Over the course of
the year, the DAX index was less volatile than Infineon shares, ending the fiscal year
with a price increase of 24 percent. As of early April, the recovery of the U.S. benchmark
indices was also more pronounced than that of Infineon shares: the Philadelphia
Semiconductor Index (SOX) rose by 23 percent overall, and the Dow Jones U.S.
Semiconductor Index ended the fiscal year 45 percent higher than at the start of the
year. The significant gains in these U.S. indices were largely driven by companies
whose core business activities involve artificial intelligence. Based on a closing
price of €33.20, Infineon’s market capitalization as of 30 September 2025 stood
at €43,231 million, compared to €40,872 million at the end of the 2024 fiscal year.
Shareholder structure
As of 30 September 2025, BlackRock Inc. held more than 5 percent of Infineon’s
issued shares, and Amundi S.A. held more than 3 percent. Retail investors at the end
of the 2025 fiscal year held 8.48 percent of the shares issued, down from 9.03 percent
at the end of the 2024 fiscal year.
09 | 2025
04 | 2025
06 | 2025
02 | 2025
11 | 2024
07 | 2025 08 | 2025
03 | 2025
12 | 2024
05 | 2025
01 | 2025
10 | 2024
47.19
44.04
40.90
37.75
34.61
31.46
28.31
25.17
22.02
18.88
Infineon
DAX
SOX
Dow Jones U.S. Semiconductor Index
C10 Development of the Infineon share compared to Germany’s DAX Index,
the Philadelphia Semiconductor Index (SOX) and the
Dow Jones U.S. Semiconductor Index for the 2025 fiscal year (daily closing prices)
Infineon share price in €
30 September 2024 = 100
150
140
130
120
110
100
90
80
70
60
C11 Shareholder structure as of the end of the 2025 fiscal year
7.35 % BlackRock Inc.
3.01 % Amundi S.A.
8.48 % Retail Investors
81.16 % other
Infineon | Annual Report 2025
62
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon on the capital market
Dividend
Through our dividend policy, we aim to ensure our shareholders adequately participate
in Infineon’s economic success. Even in the event of stagnating or declining earnings,
our aim is to pay out at least a dividend that is unchanged from the previous year.
Against this backdrop, the Annual General Meeting in February 2026 will be presented
with a proposal to distribute a dividend of €0.35 per share, as in the previous year.
This proposal takes into account the declining business performance and, at the
same time, our financial flexibility for further profitable growth in the years ahead
remains intact.
The number of issued shares as of 30 September 2025 remained unchanged at
1,305,921,137. This includes 3,781,390 shares owned by the Company that are not
entitled to dividend (30 September 2024: 6,757,925). The number of own shares
initially declined during the fiscal year due to the transfer of shares in connection
with share-based payment to Infineon employees, members of the Company’s
Management Board, and members of the management and executive boards of
affiliated companies. In September, the number rose slightly again following a limited
share buyback program. In the period from 15 to 30 September 2025, Infineon
repurchased 304,800 shares at a total cost of approximately €10 million. An addi-
tional 445,200 shares were acquired through 14 November 2025. The share buyback
is intended exclusively for the allocation of shares to employees of the Company
or its affiliated companies, members of the Company’s Management Board, and
members of the management and executive boards of affiliated companies under
existing employee participation programs. Assuming the Annual General Meeting
approves the proposed resolution, the anticipated total dividend distribution would
amount to approximately €456 million (previous year: €455 million), taking into
account the own shares held by the Company at the time of preparing this report,
which have no dividend entitlement. Further information is available in note 20 to
the Consolidated Financial Statements, p. 140.
Interested parties may participate in telephone conferences via a webcast broadcast in the Investor Relations section
of the Infineon website.
www.infineon.com/investor
Retail investors can contact us by email (investor.relations@infineon.com) and by telephone (+49 89 234-26655).
C12 Dividend per share for the 2016 to 2025 fiscal years
in € cents
1 Proposal to the Annual General Meeting to be held on 19 February 2026.
2018
27
2020
22
2023
35
2022
32
2021
27
2019
27
2016
22
2017
25
2024
35
2025
35 1
Infineon | Annual Report 2025
63
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon on the capital market
Infineon met expectations in the 2025 fiscal year despite challenging macroeconomic
and geopolitical environments. The results underscore the resilience of the business
model.
The successfully completed 2025 fiscal year coincided with a prolonged downturn
across most of our target markets. End customers and distribution partners sharply
reduced their inventories to meet their targets. Geopolitical instability and tariff-
related turbulence caused customers to be cautious concerning demand, resulting
in short-term ordering patterns. In this environment, as anticipated, Infineon recorded
a slight decline in revenue, primarily due to negative currency effects and price
reductions. Margins remained at a resilient level, supported by first meaningful
benefits from the structural improvement program “Step Up”, coming in ahead of the
anticipated timeline.
For the 2026 fiscal year, we expect moderate growth in a market environment that
continues to exhibit divergent trends. Growth momentum in the automotive, industrial,
and consumer-related markets remains subdued. Many customers are operating with
limited visibility and placing just-in-time orders. Global investment in AI infrastructure,
in contrast, continues to grow strongly, and we anticipate a significant uptick in
demand for our power supply solutions for AI data centers.
Overall statement on Infineon’s financial condition
Infineon | Annual Report 2025
64
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Overall statement on Infineon’s financial condition
Outlook
Actual and target values for performance indicators
The following table and the subsequent comments compare Infineon’s actual and
forecast key performance indicators for the 2025 fiscal year (FY) and outline the
outlook for the 2026 fiscal year.
€ in millions,
except percentages
Actuals
FY 2024
Outlook for
FY 20251
Actuals
FY 2025
Outlook for
FY 2026
Principal performance
indicators
Revenue or change
in revenue compared
to previous year
14,955
Slight decline in revenue
compared to previous year
14,662
Moderate increase
in revenue compared
to previous year
Segment Result Margin
20.8%
Mid- to high-teens
percentage range
17.5%
High-teens
percentage range
Free Cash Flow from
continuing operations
23
Around €0.9 billion
(1,051)
Around €1.1 billion
Adjusted
Free Cash Flow
1,690
Around €1.7 billion
1,803
Around €1.6 billion
RoCE
8.5%
Mid-single-digit
percentage range
4.9%
Mid-single-digit
percentage range
Selected supplementary
performance indicators
Investments
2,719
Around €2.5 billion
2,094
Around €2.2 billion
1 The forecast presented here corresponds to the original forecast made in November 2024.
Comparison of the original outlook with the
actual figures for the 2025 fiscal year
In the original forecast in November 2024, revenue was expected to decline slightly in
the 2025 fiscal year compared to the previous fiscal year. The forecast was revised
during the 2025 fiscal year due to volatility in the U.S. dollar and the debate over the
introduction of trade tariffs. The final forecast for revenue was around €14.6 billion.
The actual revenue generated in the 2025 fiscal year was €14,662 million, a decline of
2 percent year-on-year. Revenue in the 2025 fiscal year was therefore in line with both
the original forecast and the most recent revised forecast.
In November 2024, the Segment Result Margin was originally expected to be in the
mid-to-high-teens percentage range. In the course of the 2025 fiscal year, this forecast
was made more specific, with the final forecast for the Segment Result Margin in the
high-teens percentage range. This forecast was achieved, with a margin of 17.5 percent.
Originally, Free Cash Flow from continuing operations was expected to be around
€0.9 billion in the 2025 fiscal year. As a result of the acquisition of the Automotive
Ethernet business from Marvell in mid-August for €2.180 billion, Free Cash Flow was a
net outflow of €1.051 billion in the 2025 fiscal year. That was significantly lower than
the original forecast but slightly above the revised forecast of a net outflow of around
€1.2 billion issued in the third quarter.
In November 2024, it was anticipated that adjusted Free Cash Flow would be around
€1.7 billion. This was also the most recent guidance provided when the figures for
the third quarter of the 2025 fiscal year were published. The actual adjusted Free Cash
Flow was €1,803 million, which was above the forecast.
Return on Capital Employed (RoCE) was 4.9 percent, which was within the forecast of
a “mid-single-digit percentage range”.
Report on outlook, risk and opportunity
Infineon | Annual Report 2025
65
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Outlook
Investments amounted to €2,094 million in the 2025 fiscal year, which was below
the reduced forecast of €2.2 billion made in the third quarter and significantly below
the original figure of €2.5 billion forecast in November 2024.
Assumptions underlying the outlook for
the 2026 fiscal year
Assumed euro/U.S. dollar exchange rate
As an organization with global operations, Infineon generates revenues not only
in euros but also in foreign currencies, predominantly in U.S. dollars. It also incurs
expenses in U.S. dollars and, to some extent, in currencies correlated with the
U.S. dollar, such as the Singapore dollar, the Malaysian ringgit, and the Chinese
renminbi. The non-euro-denominated revenue and expenses do not always balance
out. For this reason, fluctuations in exchange rates, particularly between the euro
and the U.S. dollar, influence the amounts reported for revenue and earnings. If the
U.S. dollar strengthens against the euro, this has a positive effect on revenue and
earnings, whereas if the U.S. dollar weakens against the euro, it has an adverse effect.
The impact of a deviation of 1 U.S. cent in the actual exchange rate of the U.S. dollar
versus the euro compared to the forecast rate would alter the Segment Result by
around €10 million per quarter or around €40 million per fiscal year compared to
the forecast value. These figures are calculated on the assumption that, for those
currencies in which Infineon incurs costs, the exchange rates versus the euro change
in line with the euro/U.S. dollar exchange rate. In terms of revenue, the impact of
exchange rate effects is limited primarily to the euro/U.S. dollar rate, where a deviation
of 1 U.S. cent in the actual exchange rate compared to the forecast rate would have
an impact on revenue of around €25 million per quarter or around €100 million per
fiscal year. Planning for the 2026 fiscal year is based on an assumed exchange rate of
US$1.15 to the euro.
External growth prospects for the global economy
and the semiconductor market
While the prospects for the global economy deteriorated considerably at times in
spring 2025 due to the trade conflict between the USA and China, they picked up again
in the remainder of the 2025 fiscal year. Although the steep tariffs announced initially,
especially between the United States and China, were averted through political
agreements, the global economic environment continues to be fraught with significant
uncertainty. The International Monetary Fund (IMF) forecasts that global economic
growth will be around 2.6 percent in the 2025 calendar year (
R01). Therefore, growth
will probably be slightly below the 2.8 percent level anticipated in fall 2024. Growth
of 2.6 percent is also projected for the 2026 calendar year. The growth forecasts for
the global economy are therefore currently around the long-term average.
WSTS (World Semiconductor Trade Statistics) expects revenue in Infineon’s reference
market (i.e., the semiconductor market excluding DRAM and NAND flash memory
chips, microprocessors, graphics processors and optoelectronics) to grow 10 percent
in U.S. dollar terms in the 2025 calendar year (
R02). While growth in the overall
semiconductor market is being driven by the high-double-digit revenue rise in the
data center segment, demand for automotive and industrial applications is proving
weak. For the 2026 calendar year, WSTS is forecasting 5 percent growth in Infineon’s
reference market. The long-term trends of decarbonization and digitalization remain
intact and are driving demand for semiconductors.
Infineon | Annual Report 2025
66
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Outlook
Outlook for the 2026 fiscal year
The following outlook is based on the current business developments and Infineon’s
internal forecasts.
Moderate rise in revenue expected compared
with the 2025 fiscal year
Given the geopolitical situation, and based on the above growth forecasts for the
global economy and the relevant segments of the semiconductor market for Infineon
as well as an assumed exchange rate of US$1.15 to the euro, Infineon is forecasting
a moderate rise in revenue for the 2026 fiscal year compared with the 2025 fiscal year.
In the Automotive segment, growth is expected to be below the Group average. This
is in contrast to revenue in the Power & Sensor Systems segment, which should grow
significantly faster than the Group average, driven by strong demand momentum
for products for power supply to AI data centers. Compared with the 2025 fiscal year,
a moderate rise in revenue is expected for the Green Industrial Power segment, while
the Connected Secure Systems segment should post slightly higher revenue.
Segment Result Margin expected to be
in the high-teens percentage range
Given this revenue forecast, the Segment Result Margin is expected to be in the
high-teens percentage range in the 2026 fiscal year.
Free Cash Flow from continuing operations
and adjusted Free Cash Flow
For the 2026 fiscal year, Infineon is forecasting Free Cash Flow of around €1.1 billion.
This includes significant net cash outflows for investments in expanding frontend
manufacturing in Dresden (Germany) and in capacity for power supply solutions for
AI data centers. Adjusted Free Cash Flow is expected to be around €1.6 billion.
RoCE
Return on Capital Employed is expected to be in the mid-single-digit percentage range
in the 2026 fiscal year.
Investments and depreciation/amortization
Infineon is planning investments (defined as the sum of investments in property, plant
and equipment, investments in other intangible assets and capitalized development
costs) of around €2.2 billion in the 2026 fiscal year. Investments in other intangible
assets, including capitalized development costs, will likely be significantly higher than
the level of €294 million in the 2025 fiscal year.
In the 2026 fiscal year, investments will focus on the completion of the fourth
manufacturing module in Dresden (Germany) and further equipment, to match
strongly growing customer demand for power supply for AI data centers. It is
anticipated that depreciation and amortization will be around €2.0 billion in the 2026
fiscal year. Approximately €0.4 billion of this relates to the amortization of purchase
price allocations, mainly in connection with the acquisition of Cypress and of the
Automotive Ethernet business from Marvell.
Overall statement on expected
developments at Infineon
Based on the forecasts for the development of the global economy and the
semiconductor market in the 2026 calendar year, the geopolitical risks, and an
assumed exchange rate of US$1.15 to the euro, Infineon expects to see a moderate
rise in revenue compared with the 2025 fiscal year. The Segment Result Margin
should be in the high-teens percentage range. Investments of around €2.2 billion
are forecast, with depreciation and amortization expected to be around €2.0 billion.
Free Cash Flow from continuing operations should be around €1.1 billion, and
adjusted Free Cash Flow is expected to be around €1.6 billion. Return on Capital
Employed should be in the mid-single-digit percentage range.
Infineon | Annual Report 2025
67
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Outlook
Risk and opportunity report
Risk policy: Basis of our risk and
opportunity management
Effective risk and opportunity management is an important element of our business
activities and supports the implementation of our strategy to achieve our strategic
goals. Infineon’s risk and opportunity situation continues to be characterized by the
dynamic market environment in the semiconductor industry, a substantial need for
capital investment to achieve and sustain its market position, exceptionally rapid
technological change, and decarbonization and digitalization. Competition to gain
an innovative edge also occurs at the legal level, as evidenced, for example, by
patents. Against this background, Infineon’s risk policy is aimed at quickly realizing
the opportunities that arise in a way that increases its enterprise value. It also focuses
on identifying risks early and actively mitigating them – particularly those risks that
might pose a threat to Infineon’s going-concern status – by adopting appropriate
countermeasures. Risk management at Infineon is therefore closely linked to corporate
planning and the implementation of our strategy. The ultimate responsibility for
risk management lies with the Infineon Management Board.
Coordinated risk management and control system elements are in place that enable
us to implement our risk policy. In addition to the Risk and Opportunity Management
System (ERM) and the Internal Control System (ICS) described below, these elements
include, in particular, the related forecasting, management and internal reporting
processes, as well as our Compliance Management System (CMS).
ERM system and ICS
Infineon’s centralized ERM system is based on a Group-wide, management-oriented
ERM approach, which aims to cover all relevant risks and opportunities. This
approach is based on the “Enterprise Risk Management – Integrating with Strategy
and Performance” (2017) framework developed by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The objective of the system is
the early identification, assessment and management of risks and opportunities
that could have a significant influence on Infineon’s ability to achieve its strategic,
operational, financial, legal and compliance targets.
Infineon’s Internal Control System is also based on a framework developed by
COSO (“Internal Control – Integrated Framework” (2013)). This framework describes
the various elements in a control system (the control environment, risk assessment,
control activities, information and communication, and monitoring) and sets out the
basis for the evaluation of the appropriateness and effectiveness of the ICS.
The responsibility for processes and systems relating to the ICS and the ERM rests
with the risk management and ICS function within the Group Finance department, as
well as with designated risk and control officers working at segment and corporate
function levels. Responsibility for the identification, measurement, management and
reporting of risks and opportunities, as well as for their mitigation and control, lies
with the management of the organizational unit concerned.
In organizational terms, implementation of the ICS and ERM is via a closed-loop,
multistage process that stipulates the manner and criteria to be applied to identify,
measure, manage, mitigate, control and report on risks and opportunities and defines
how the system is to be monitored as a whole. Major components of the system
are a quarterly analysis of risks and opportunities, reporting by all units included,
an analysis of the overall situation at segment and Group levels, and reporting to
the Management Board on the risk and opportunity situation, the results of tests of
the controls, and the major management and control measures undertaken. The
Management Board, in turn, reports regularly to the Supervisory Board’s Investment,
Finance and Audit Committee on the developments and results of the ICS and ERM.
Where necessary, standard processes are supplemented by ad hoc reporting of any
major risks identified between the regular reporting dates.
Infineon | Annual Report 2025
68
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
We define a risk or an opportunity as the occurrence of future uncertainties that could
result in either a negative or a positive variance from the business plan. The units
included in the risk management consolidation in the 2025 fiscal year corresponded
with those included in the Group consolidation according to IFRS Accounting Standards.
We thereby incorporate all relevant organizational units within the Group into the
analysis, covering all segments and significant corporate functions.
Risks and opportunities under ERM are measured on a net basis by taking into
account any existing management and mitigation measures. The time periods and
measurement categories used are closely linked to our short-term and medium-term
business planning and our business targets.
All relevant risks and opportunities are assessed uniformly across the Group in
quantitative or qualitative terms, based on two factors: degree of impact on the
Segment Result and/or on business objectives, reputation and compliance, and
likelihood of occurrence.
The scales used to measure these two risk assessment factors (degree of impact and
likelihood of occurrence) are depicted in the table below. The degree of impact also
applies to the classification of risk sub-categories (value-at-risk).
Degree of impact on the Segment Result/
value-at-risk classification
Probability of occurrence
< €40 million
Marginal
<10%
Very unlikely
€40 – 100 million
Minor
10 – 40%
Unlikely
€100 – 200 million
Moderate
40 – 60%
Possible
€200 – 400 million
Significant
60 – 90%
Probable
> €400 million
Major
> 90%
Virtually certain
All risks and opportunities reported for Infineon are reviewed for possible cumulative
effects and analyzed using an Infineon-specific categorization model that also takes
non-financial and sustainability-related risks into account. Interdisciplinary workshops
held at the segment and corporate function levels support our risk and opportunity
analysis and enhance our risk and opportunity management culture. Important
information relevant to Infineon’s ICS and ERM is available to all employees via our
intranet system, including access to our guidelines containing job descriptions
for all functions involved in the process, as well as all the information required for
reporting purposes.
Risk and Opportunity Managers are designated at appropriate hierarchy levels to
manage and monitor identified risks and opportunities according to their relevance.
They are responsible for formally determining a set of appropriate risk and opportunity
management strategies (in the case of risks: avoidance, mitigation, control, transfer,
or acceptance). Working closely with corporate functions and the individual managers
responsible for measures, the persons responsible define and monitor the measures
aimed at implementing the management and control strategy. The active and specific
management and monitoring of risks and opportunities are critical to the success
of our system.
Compliance with the ICS and ERM approaches is monitored by the corporate function
responsible for risk management and ICS using procedures incorporated into business
processes. Group Internal Audit also performs tests for compliance with certain legal
requirements and Group-wide guidelines and, where appropriate, rules relating to the
ICS and ERM and recommends corrective measures.
The Supervisory Board’s Investment, Finance and Audit Committee monitors the
appropriateness and effectiveness of both systems (ICS and ERM).
Infineon | Annual Report 2025
69
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
As part of the Group audit, the external auditor also examines the early risk detection
system pursuant to section 91, paragraph 2 of the German Stock Corporation Act
(AktG) to ascertain its suitability to detect at an early stage developments that could
pose a threat to Infineon’s going-concern status in accordance with IDW Auditing
Standard 340 (revised 01.2022) and reports thereon annually to the Chief Financial
Officer and to the Investment, Finance and Audit Committee of the Supervisory Board.
In addition, BDO AG Wirtschaftsprüfungsgesellschaft performed a voluntary audit of
the appropriateness, implementation and effectiveness of the risk management
system on the basis of IDW Auditing Standard 981. For the period from 1 January 2024
through 31 December 2024, this showed that, in all material respects, the ERM principles,
processes and measures implemented by Infineon were presented appropriately in
the description of the ERM in accordance with the applicable principles of IDW Auditing
Standard 981 and that they were effective.
In order to calculate a maximum risk value for the assessment of Infineon’s overall
risk situation, all risks identified are aggregated using a Monte Carlo simulation.
This aggregate risk position is used to evaluate Infineon’s risk-bearing capacity in the
review period based on the value-at-risk performance indicator. This analysis did
not lead to any need for adjustment. The risk-bearing capacity in the 2025 fiscal year
was ensured.
Compliance Management System
We have implemented a Group-wide Compliance Management System to manage
compliance-related risks in a systematic, comprehensive and sustainable manner.
We are continuously enhancing the key elements of our CMS to prevent, detect and
respond to compliance-related incidents. The Chief Compliance Officer reports to
the Chief Financial Officer and, on a quarterly basis, to the full Management Board
and the Investment, Finance and Audit Committee of the Supervisory Board.
The Supervisory Board’s Investment, Finance and Audit Committee monitors
the appropriateness and effectiveness of the Compliance Management System.
In structuring its Compliance Management System, Infineon has been following the
requirements of the IDW Auditing Standard 980 for years. The appropriateness,
implementation and effectiveness of its CMS Group-wide in the areas of “Antitrust Law”
and “Corruption Prevention” is audited by an external auditing firm in accordance
with IDW Auditing Standard 980. This audit was last carried out in the 2024 fiscal year
by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, which issued
an independent auditor’s report with an unqualified audit opinion for the period from
1 October 2023 to 30 April 2024. In addition, the effectiveness of the CMS is monitored
by regular internal audits at the companies. As part of the CMS, a formal annual
assessment of our risks is conducted with a particular emphasis on corruption and
antitrust laws. Any necessary measures derived from this assessment are summarized
in Infineon’s compliance program.
Internal Control System with respect to the
financial reporting process
The overriding objective of our Internal Control System with respect to the financial
reporting process as part of the general ICS and ERM described above is to monitor
and ensure the correctness, appropriateness and effectiveness of our accounting and
financial reporting. The ICS with respect to the financial reporting process aims to
minimize the risk of misstatement in Group accounting and external reporting and
to provide reasonable assurance that the Consolidated Financial Statements comply
with all relevant regulations. For this to be the case, Group-wide compliance with
legal and internal regulations must be ensured. Clear responsibilities are assigned
to each of the processes.
The ICS with respect to the financial reporting process is also based on the framework
developed by the COSO “Internal Control – Integrated Framework” (2013) and is
part of the accounting process in all relevant legal entities and corporate functions.
Infineon | Annual Report 2025
70
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
The system monitors compliance with policies and procedures using preventive and
detective controls. Among others, we regularly check that
– Group-wide financial reporting, measurement and accounting guidelines are
continually updated and adhered to;
– intragroup transactions are fully accounted for and properly eliminated;
– issues relevant for financial reporting and disclosures in connection with agreements
entered into are recognized and appropriately presented;
– processes and controls are in place to explicitly guarantee the completeness and
correctness of the financial reporting in the Consolidated Financial Statements; and
– processes are in place for the segregation of duties and for the four-eye principle
in the context of preparing financial statements, as well as for authorization and
access rules for relevant IT accounting systems.
Assessment of the Internal Control System with
respect to the financial reporting process
We systematically assess the appropriateness and effectiveness of the ICS with respect
to the financial reporting process. An annual risk analysis is initially performed,
and the defined controls are revised as and when required. The assessment involves
identifying and updating significant risks relating to accounting and financial reporting
in the main legal entities and corporate functions. The controls defined for identifying
risks are documented in accordance with Group-wide guidelines. Regular random
tests are performed to assess the appropriateness and effectiveness of these controls.
The tests constitute the basis for assessing the appropriateness of the design and
effectiveness of the controls. The results are documented and reported in a global
IT system. Any deficiencies identified are remedied, with due consideration given
to their potential impact.
Furthermore, all legal entities, segments and relevant corporate functions confirm
in a Representation Letter the complete recognition of assets, liabilities, contingent
liabilities, expenses and income, as well as other matters requiring disclosure.
At the end of the annual cycle, the main legal entities review and confirm the
appropriateness and effectiveness of the ICS with respect to the financial reporting
process. The Management Board and the Investment, Finance and Audit Committee
of the Supervisory Board are regularly informed about any significant control
deficiencies identified in the ICS with respect to the financial reporting process and
about the effectiveness of the internal controls in place.
Overall statement of the appropriateness and
effectiveness of the ERM system and the ICS
In the semi-annual meetings of the Risk Committee, the Group-wide risk and
opportunity situation is evaluated, and the results of the internal control process are
discussed. In addition, an overall statement on the appropriateness and effectiveness
of our general ICS and ERM is produced once a year. This overall statement is based
on reviews conducted by Internal Audit, voluntary external reviews and audits, and
self-assessments. The evaluation is conducted inter alia on the basis of the following
criteria:
– Appropriate organizational coverage of Infineon’s ICS and ERM processes
– Availability of clear Group-wide guidelines about the ICS and ERM processes
– Timeliness of regular risk inventory, risk reporting processes and testing of
the controls
– Timeliness and regular monitoring of ICS and ERM mitigation activities
– Discussion of new risk topics with the managers responsible and with the
Risk Committee
Infineon | Annual Report 2025
71
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
We make continual improvements to our ICS and ERM based on the findings of Internal
Audit reviews, as well as external reviews and audits.
In all material respects, on the basis of the ICS and ERM activities conducted in the
2025 fiscal year, no factors came to our attention that would give rise to doubt as to
the appropriateness and effectiveness of the ICS or ERM system.
Both the general ICS and ERM and the ICS with respect to the financial reporting
process are continuously being developed and expanded to ensure compliance with
internal and external requirements. Improvements made to these systems contribute
to the ongoing monitoring of the relevant risk areas, including the responsible
organizational units.
Major and significant risks
In the following sections, we describe individual risks in the risk sub-categories that
could have a major or significant adverse impact in the 2026 fiscal year on Infineon’s
Segment Result and/or its business objectives, reputation or compliance (see above
table on degree of impact, p. 69). In addition, selected individual risks with a lesser
impact are listed.
We divide these risks into four main risk categories: “Strategic risks”, “Operational risks”,
“Financial risks” and “Legal and compliance risks”. Risk sub-categories are assigned
to these main risk categories.
The classification of the risk sub-categories for the 2025 fiscal year and the 2026 fiscal
year is presented in the table below. For the classification of the risk sub-categories,
the value-at-risk performance indicator per risk sub-category is generated from the
risk assessments of the individual risks assigned to each sub-category using a Monte
Carlo simulation. The classification is based on the scale to measure the impact
on the Segment Result set out in the chapter “ERM system and ICS”, p. 69. Unless
otherwise stated, the risks described within the risk sub-categories apply across
the segments.
Risk category
Classification
2025 fiscal year
Classification
2026 fiscal year
Strategic risks
Risks arising from cyclical market and sector trends
Major
Major
Corporate strategy risks
Major
Major
Risks arising from acquisitions and cooperation arrangements
Minor
Marginal
Media relations & communication risks
Minor
Marginal
Operational risks
Purchasing and logistical risks
Major
Major
Risks arising from manufacturing
Significant
Significant
Risks relating to the areas of cyber security,
information security and IT security
Major
Major
Risks relating to the development process and product lifecycle
Moderate
Minor
Risks relating to the availability of qualified employees
Marginal
Marginal
Business continuity risks (including climate risks)
Significant
Significant
Financial risks
Currency risks
Significant
Significant
Risk of default of banks and financing partners
Minor
Minor
Other financial risks
Marginal
Minor
Tax risks
Marginal
Marginal
Legal and compliance risks
Regulatory risks
Moderate
Moderate
Other legal risks
Minor
Minor
Infineon | Annual Report 2025
72
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Strategic risks
Risks arising from cyclical market and sector trends
General market risks
The worldwide semiconductor market is dependent on global economic growth and
hence subject to fluctuations. Our target markets are therefore exposed to the risk of
short-term market fluctuations. As a result, our forecasts of Infineon’s future business
performance are subject to uncertainties. The absence of projected market growth
or an unforeseen decline in market growth (related, for example, to the expansion
of renewable energy, electromobility or artificial intelligence) would make it consider-
ably more difficult to attain our own growth target. We counter this by entering into
long-term sales contracts. We also address the fluctuations in economic conditions
and customer demand that are typical of the semiconductor business by continuously
monitoring vital early warning indicators and, as far as possible, by adopting specific
mitigation strategies. Examples of these strategies include making systematic adjust-
ments to capacity utilization and inventories at an early stage, introducing cost-cutting
measures and making flexible use of external production facilities for both frontend
and backend manufacturing.
If we were unprepared for market fluctuations or the mitigation strategy we had
adopted proved to be inappropriate, this could have a sustained adverse impact on
Infineon’s financial condition, liquidity and results of operations.
Risks arising from increased market competition
and commoditization of products
The spread of new technological developments in a global market also results in
greater replaceability of products. Due to the resulting price competition, we may be
unable to achieve our long-term strategic goals of gaining and/or maintaining market
share and of product pricing. Moreover, accelerating M&A (merger and acquisition)
activities within the semiconductor industry or government subsidies restricted
to specific regions could result in even tougher competition. Potential benefits for
competitors include improved cost structures and preferential customer access.
There is also the risk that an increased volume of previously imported semiconductors
will be manufactured in China and that a greater volume of those made in that country
will be exported. Overall, this situation could have an adverse impact on Infineon’s
financial condition, liquidity and results of operations.
Risks relating to corporate strategy
Risks arising from an uncertain political and economic environment
As an organization with global operations, our business is highly dependent on
global economic developments. A worldwide economic downturn – particularly in
the markets we serve – could result in us not achieving our forecasted revenue and
contribution to earnings. Risks could also arise due to political and social changes,
particularly when those changes occur in countries in which we manufacture and/or
sell our products.
Geopolitical risks were still considered very high in the 2025 fiscal year, especially as a
result of the ongoing war in Ukraine, the conflict over Taiwan and the military conflicts
in the Middle East. This has reduced the predictability of economic development.
The war in Ukraine is giving rise to risks and adverse impacts, such as price increases
and a shortage of energy and raw materials. The present development of the Middle
East conflict could further heighten the risk of a global economic downturn. Moreover,
rising inflation and higher interest rates could lead to a significant decline in
consumption.
Furthermore, trade tariff disputes, export controls and export bans for advanced
technology and/or critical basic materials, as well as trade restrictions such as those
between the USA, the EU and China, may constrain global trade, thereby dampening
global economic growth. From a Chinese perspective, this includes the risk of a
decline in foreign demand and, hence, a slower increase or a decline in China’s gross
domestic product, a market that is important for Infineon. Furthermore, the trade
tariff conflicts could result in de facto exclusion from key markets if Infineon does
not have local production. All of this could have a major impact on our financial con-
dition and results of operations.
Infineon | Annual Report 2025
73
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Macroeconomic risks
In addition to the risks mentioned above, the government debt situation worldwide
changed very little in the 2025 fiscal year and continues to present a risk. Regardless
of our assessment of the scenarios and possible responses to this complex set of
risks, this situation could have an adverse impact on Infineon’s liquidity and results
of operations.
Risks relating to sustainability strategy
There is a risk that our self-imposed sustainability targets may not be achieved or
may not be fully achieved by 2030. Reasons for this could include regulatory changes,
inadequate availability of data, changes in the external market or short supply of
renewable energy. That could result in reputational damage, regulatory sanctions
and a loss of confidence by customers and investors. Infineon already has a wide
range of measures to counter this risk (for example, in-house efficiency measures, the
erection of in-house solar installations, considering partnerships with local operators
of solar facilities and wind farms).
Risks arising from acquisitions and cooperation agreements
In order to develop or expand our existing business, it might be appropriate for us
to make further acquisitions or enter into other forms of partnership with external
companies. In the case of business combinations, there is a risk that we may be
unsuccessful, particularly with regard to the integration of employees and products
into existing business structures. These issues could adversely impact Infineon’s
financial condition, liquidity and results of operations.
Media and communication risks
Due to the rapid advances in AI technology and its potential for manipulation, there
is a risk that AI-generated misinformation and disinformation could undermine trust
in Infineon’s information sources, brand and reporting and thus influence public
opinion. This could result in damage to the brand, widespread dissemination of false
information about Infineon, a loss of trust in Infineon’s media and capital market
communications, and short-term declines in the share price.
Operational risks
Purchasing and logistical risks
We cooperate with numerous suppliers who provide us with materials and services
or manage parts of our supply chain and for which there are not always multiple
alternatives. We therefore partly depend on the delivery capability of our suppliers
and the quality of their supplies. At the same time, we face price increases from our
suppliers, and there is a risk that it might not be possible to pass on these increases
in full to our customers. In addition, the conflict over Taiwan might affect the supply
situation for our Taiwanese partners. If one or more of these suppliers were to default
on their obligations to Infineon, this could have an adverse impact on Infineon’s
liquidity and results of operations.
In general, we seek to minimize procurement-related risks through our purchasing
strategies and the use of appropriate product and cost analyses (Best Cost Country
Sourcing and Focus-on-Value), as well as through geographical diversification.
These programs include cross-functional teams of experts who are responsible for
standardizing procurement processes for materials and technical equipment.
To take account of the growing importance of Infineon’s ecosystem partners (enterprises
with which Infineon shares a significant long-term economic interest and which
represent added value for Infineon’s products), we have implemented a partner risk
evaluation system for Go2Market and IP/R&D partners (intellectual property/research
and development). This partner risk evaluation addresses Infineon’s dependence
on its ecosystem partners. As a result, the high-risk ecosystem partners throughout
the Group are identified and continuously assessed. Additionally, corrective risk
mitigation measures are implemented to avoid an adverse impact on Infineon’s
financial condition, liquidity and results of operations and/or on its business objectives,
reputation and compliance.
Infineon | Annual Report 2025
74
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Risks arising from manufacturing
Our European and Southeast Asian manufacturing sites are of great importance
for our production. If, for example, political upheavals, natural disasters or pandemic
outbreaks in one of these regions were to restrict or completely obstruct our ability
to manufacture at these sites at the planned scale or to export products manufactured
at the sites, this would have an adverse impact on our financial condition, liquidity
and results of operations.
Furthermore, our medium-term and long-term forecasts are based on expected
manufacturing cost trends for our products. In this context, the implementation of
measures aimed at optimizing manufacturing costs for raw materials and supplies,
energy, labor and automation, as well as the collaboration with external partners,
may not be feasible to the extent envisaged. The dynamic markets and the increasing
customer need for flexibility, combined with short-term adjustments to order quantities,
could result in rising costs due to the underutilization of manufacturing capacities,
higher inventory levels and unfulfilled commitments to suppliers.
Thus, despite the fact that our manufacturing processes and sites have become even
more flexible due to cross-location production optimization, there is still a cost risk
due to fluctuations in capacity utilization, which is reflected in costs resulting from
underutilization of capacity at our manufacturing sites or purchase commitments
that have been entered into.
Risks that semiconductor companies operating in-house manufacturing facilities
typically face are construction delays at new manufacturing sites and delays in the
ramping up of production volumes at those sites, or delays in the transfer of technology.
One example is the Automotive segment, where customers’ product approval and
testing processes can be conducted over an extended period of time, thus influencing
our global manufacturing strategy as well as our short-term and medium-term capacity
utilization. Failure to anticipate these changes in the manufacturing process in good
time could result in capacity shortages and hence lower revenue or in underutilization
costs and therefore have an adverse impact on earnings.
Moreover, our dependence on energy supplies for our production, as well as on various
production materials (such as wafers) and raw materials (including gold and copper),
exposes us to significant price and supply risks. Price risks are also attributable in
part to the prevailing rate of inflation. In such a situation, if we are unable to offset cost
increases or pass them on to our customers, this could have an adverse impact on
our financial condition, liquidity and results of operations.
Risks relating to the areas of cyber security, information security
and IT security
The reliability and security of Infineon’s data, systems and networks are of crucial
importance. At the same time, the world has seen a rise in threats in cyberspace. This
increasingly applies to the use of IT systems to support business processes as well as
to support internal and external communications. Despite the array of precautionary
measures put in place, any major disruption to these systems could result in risks
relating to the confidentiality, availability and integrity of data used in research and
development, manufacturing, selling or administration functions, which, in turn, could
have an adverse impact on our reputation, production capability, competitiveness
and financial condition, liquidity and results of operations.
Potential cyber-attacks on data, systems and networks used in our manufacturing
processes present risks that could result in production downtime and supply bottle-
necks. In addition, cyber-attacks with industrial espionage intent (for instance, social
engineering, payment fraud) and the related financial damage and potential loss
of intellectual property or patents pose risks that could jeopardize our investment in
research and development and impair our long-term competitiveness.
Infineon | Annual Report 2025
75
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Infineon has had a global cyber security program in place for many years now to
ensure that it is suitably protected and prepared for the constantly changing cyber
security threat situation. A key element of this program is our Cyber & Information
Security Management System (CISMS). This system, which takes a structured approach,
aims to identify and evaluate risks to our data, information systems, networks, products,
solutions and services, to constantly improve our protective measures, processes
and tools, and to adapt them to the threat situation. Our CISMS covers all areas of
Infineon’s business and is certified in accordance with international standards (including
TISAX). The effectiveness of the CISMS is continuously monitored in the course of
regular internal and external audits.
Risks relating to the development process and product lifecycle
The ever-increasing complexity of technologies and products, shorter development
cycles and dynamic customer demands can cause a great deal of tension in the field of
product development. Buffer times built into processes to compensate for potential
delays are reduced accordingly. If we are unable to execute our development plans,
this would lead to delays and higher development costs.
This situation is exacerbated by the fact that some of our products are highly dependent
on the degree of commercial success achieved by individual customers in their own
markets. Furthermore, there is the risk of losing future business and design wins if we
are unable to deliver volumes above our contractual obligations if called upon by
customers to do so. In addition, there is a risk that we may be unable to acquire new
customers or enter new markets. These factors could have an adverse impact on
Infineon’s liquidity and results of operations.
A structured project management system has been set up to handle our development
projects. To help us identify potential project risks at an early stage and use specific
measures to counteract these risks, we require projects to have clear project milestones,
ongoing verification procedures and clearly defined limits of approval authority.
Product quality assurance is of crucial importance. Shortfalls in product quality
can lead to product recalls for our customers and related potential costs for liability
claims. In addition, quality risks could damage Infineon’s reputation and thus have
a significant adverse impact on its future financial condition, liquidity and results of
operations.
To avoid quality risks, we have adopted various quality management strategies such
as “FMEA” (Failure Mode and Effects Analysis) and “Six Sigma” in order to prevent and
solve problems and continuously improve all our business processes. Our Group-wide
quality management system has been certified for a number of years in accordance
with ISO 9001 and ISO/TS 16949 and encompasses the development processes of
our suppliers. Our processes and initiatives to ensure continuous improvement are
aimed, among other things, at identifying and eliminating the causes of quality-related
problems at an early stage. Based on the above risk descriptions, the classification
of this sub-risk category has been reduced to “minor” compared with the previous
fiscal year.
Risks relating to the availability of qualified employees
One of the key factors in our success is qualified employees. There is a general risk
of not being able to recruit enough people or people who are sufficiently qualified
to work at Infineon, of losing existing qualified staff or failing to provide them with
adequate training, and of not retaining people in the business. A lack of technical or
management personnel could, among other things, restrict future growth and hence
adversely impact Infineon’s financial condition, liquidity and results of operations.
To counter these risks, Infineon has set up its own work group. The specific remit of
this work group is employee recruitment, retention and training.
Infineon | Annual Report 2025
76
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Business continuity risks (including climate risks)
An increasing number of events, such as extreme weather conditions (e.g., floods,
drought, storms) and other damaging events (e.g., earthquakes, fire, chemical accidents,
power failures) could pose a threat at any time to our production facilities and office
buildings in all the main operating segments and thus could have an adverse impact
on our business success.
We counter these risks on an individual site basis with appropriate mitigation measures,
business interruption insurance and other business continuity structures, all of which
are reviewed regularly by conducting stress tests to ensure their appropriateness and
effectiveness.
Financial risks
Currency risks
The international orientation of our business activities creates cash flows in a number
of currencies other than the euro, primarily in U.S. dollars. A significant share of
revenue, operating costs and investments is denominated in U.S. dollars and correlated
currencies. For the most part, Infineon generates a U.S. dollar surplus from these
transactions.
Specified currencies are hedged Group-wide by means of derivative financial instru-
ments. The targeted use of hedging instruments is based on forecasts of future cash
flows, the occurrence of which is uncertain. Under these circumstances and despite
the use of hedging instruments, exchange rate fluctuations could adversely impact
Infineon’s results of operations.
Risk of default of banks and financing partners
Our holdings of liquid funds (gross cash position) expose us to the potential risk
of a default of one or more of the banking and financing partners with whom we do
business. We mitigate this risk – which could still arise despite various state-insured
deposit protection mechanisms – by a combination of risk avoidance analyses and
risk-spreading measures. The failure of these measures could have a negative impact
on Infineon’s financial condition and liquidity.
Further information regarding the management of financial risks is provided in note 28
to the Consolidated Financial Statements, p. 157 ff.
Other financial risks
Other financial risks include general interest risks, as well as risks relating to customer
defaults and the risk of increased insurance premiums, but these are deemed to
be minor.
Tax risks
Infineon could be exposed to tax risks arising from previous assessment periods and
changes in tax legislation or interpretation of the law. Unforeseen tax expenses might
occur relating to previous assessment periods that have not yet been the subject of
a tax audit or are currently the subject of a tax audit in the various countries in which
Infineon operates. The realization of any of these risks could result in fines and penalties
and therefore have a material adverse impact on the Group’s financial condition,
liquidity and results of operations.
Infineon adopts a number of strategies to mitigate these risks. These include, among
others, regular employee training, a Tax Compliance Management System for selected
sites, and internal audits to ensure adherence to important compliance regulations
in all legal entities of the Group (Framework for Internal Controls in the Tax Process).
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Legal and compliance risks
Regulatory risks
Compliance risks
There is a risk that, due to inappropriate business conduct by employees, Infineon
could violate antitrust regulations or laws combating bribery and corruption. Potential
consequences might include heavy financial penalties, compensation claims, the cost
of external support (such as lawyers’ fees), damage to its reputation and exclusion
from tendering for public contracts.
We have therefore introduced a Group-wide Compliance Management System to
manage these compliance-related risks in a systematic, comprehensive and sustainable
manner. We continue to refine the key elements of our CMS. One of the ways we
are doing this is by providing specific employee training designed to prevent, detect
and react to compliance-related incidents. The Chief Compliance Officer reports on
a regular basis to the Chief Financial Officer, the Management Board as a whole and
the Supervisory Board’s Investment, Finance and Audit Committee.
Export control risks
As a result of the increasing complexity and frequent changes to export control regu-
lation in all the countries in which Infineon operates, there is a risk of not complying
fully with all applicable national and international export control laws and regulations,
which might result in fines and penalties. This could have an impact on Infineon’s
results of operations or could influence the availability of export permits.
The central Export Control department is responsible for the implementation of
effective measures relating to export control legislation and foreign trade to avoid
sanctions and fines being imposed on Infineon. To prevent divergence from the
relevant regulations, Infineon has introduced organizational measures (such as
appointing local managers responsible for export control) and has implemented
training measures for all the employees concerned. It also uses Group-wide approval
routines in all relevant processes, conducts internal audits of export control and
implements other control measures.
Data protection risks
In principle, there is a risk that there could be a violation of laws and regulations
relating to the processing and use of personal data, which could lead to data breaches,
resulting in severe penalties and/or reputational damage. The Data Protection
Management System (DPMS) established by Infineon to mitigate these risks sets out
rules and standards for the Group-wide processing of personal data and monitors
compliance with these rules and standards.
Other legal risks
Risks relating to intellectual property rights and patents
As with many other companies in the semiconductor industry, allegations are made
from time to time, that we have infringed upon other parties’ commercial property
rights. Regardless of the prospects of success of such claims, substantial legal defense
costs can arise.
We cannot rule out that claims of patent or trademark infringements will be upheld
in a court of law, thus resulting in significant claims for damages or restrictions on
selling the products concerned. Any such outcome could, in turn, have an adverse
impact on Infineon’s financial condition, liquidity and results of operations.
One of the ways in which we counter patent-related risks is by adopting a specific
patent strategy. This includes patent searches in relation to development projects,
the systematic registration of our own patents and patent cross-licensing arrange-
ments with major competitors. However, no such opportunities exist to safeguard
against risks of this nature in the case of companies specializing in the exploitation
of patent rights.
Infineon | Annual Report 2025
78
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
In addition, due to the use of open source code in our software products, there is a risk
that we may no longer be able to protect our intellectual property. This would result
in us losing the differentiating features of our products, reducing our market share
and revenue. In addition, we are exposed to a liability risk from the use of potentially
malicious open source code. We are addressing this risk with awareness-raising
initiatives in the developer community and automated code reviews.
Further information regarding litigation and government inquiries is provided in
note 24 to the Consolidated Financial Statements, p. 145 f.
Risks arising from our global operations
Our global business strategy requires the maintenance of research and development
locations and manufacturing sites throughout the world. The location of such facilities
is determined by market entry hurdles and by technology and cost factors. Risks
could therefore arise if economic and geopolitical crises were to impact our regional
markets and if country-specific legislation and regulations were to influence investment
activities and the ability to trade freely. Differing practices in the way tax, judicial
and administrative regulations are interpreted could also restrict business activities.
In addition, we could be exposed to the risk of fines, sanctions, trade restrictions
(tariffs) and reputational damage.
Asian markets are particularly important to our long-term growth strategy. Our
operations in China are influenced by a legal system that may be subject to change.
One example is the fact that local regulations could make it mandatory to enter into
partnerships with local companies. These circumstances could lead to Infineon’s
intellectual property no longer being sufficiently protected or to intellectual property
developed by Infineon in China not being freely transferable to other countries and
locations, thus impairing Infineon’s financial condition and results of operations.
Overall statement by Group management
on the risk situation
The overall risk assessment is based on a consolidated view of all major individual risks.
The risk situation as a whole remains essentially unchanged from the previous fiscal
year. We are currently not aware of any risks, taken individually or in combination with
other risks, that are capable of jeopardizing Infineon’s going-concern status.
Major opportunities
Opportunities arising from decarbonization, digitalization and the strategic approach
“Product to System” have already been examined in the Outlook and are described
here in more detail as overarching opportunities.
Opportunities from decarbonization and the
acceleration of the energy transition
With a constantly growing world population and increasing industrialization, global
demand for energy is rising. Renewable energy is playing a key role in curbing carbon
emissions. The long-term objective is to achieve global decarbonization by the end of
the century, as resolved at the Climate Change Conference held in Paris (France) in
December 2015 and confirmed at the UN Climate Change Conferences (Conferences
of the Parties or COP) in the past few years. As part of its Green Deal concept, the
European Union intends to become carbon-neutral by 2050.
To achieve this target, it will be necessary to develop renewable sources of energy at
a faster rate than originally envisaged. This should lead to an increase in demand for
our products, as Infineon’s semiconductors enable electric power to be generated
more efficiently from renewable energy sources. Indeed, they offer efficiency gains at
all stages of the energy industry’s value chain, whether in generation, transmission,
storage or, above all, in the use of electric power. They form the basis for the intelligent
and efficient use of electric power, for instance, in industrial applications, power
supplies for computers and consumer electronics, and in vehicles.
Infineon | Annual Report 2025
79
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Opportunities arising from digitalization
The trend towards digitalization offers substantial business potential for Infineon. This
is reflected in the optimization of internal processes, such as for our interconnected
global manufacturing lines, as well as in sales and administration. Furthermore, our
broad portfolio puts us in an excellent position to successfully exploit emerging market
potential. The strategic approach “Product to System” we have already implemented
makes us very well prepared to penetrate and develop the markets involved. Good
examples already apparent today include automated driving, artificial intelligence
and IoT.
Additional opportunities are arising from accelerated and/or broader market
penetration of digital products and the more rapid realization of products with
physical artificial intelligence (such as humanoid robots).
Opportunities arising from our strategic approach
“Product to System”
The aim of our strategic approach “Product to System” is to identify additional benefits
for our customers at a system level from within our broad portfolio of technologies
and products. That includes suitable software solutions. This strategy enables us to
exploit further revenue growth potential, reduce customers’ development costs and
shorten the lead times required to bring their products to market, thereby supporting
our growth and margin targets.
Summary
In addition to the future business prospects mentioned in the Outlook, opportunities
available to Infineon are described in the following sections: “Strategic opportunities”,
“Operational opportunities” and “Financial opportunities”. However, the individual
opportunities identified here represent only a small selection of the opportunities
arising. Our assessment of opportunities is also subject to continuous change.
This reflects the fact that our business, our markets and the technologies we deploy
are constantly subject to new developments, bringing with them fresh opportunities
and causing others to become less relevant or otherwise changing the significance
of an opportunity from our perspective. The classification of the opportunity categories
is based on an assessment of the individual opportunities assigned to each category
using a Monte Carlo simulation in a similar process to that for risks.
Opportunity categories
Classification
2025 fiscal year
Classification
2026 fiscal year
Strategic opportunities
Marginal
Marginal
Operational opportunities
Marginal
Marginal
Financial opportunities
Marginal
Marginal
Strategic opportunities
Opportunities arising from cyclical market and sector trends
Growth opportunities relating to data centers and IoT
The ongoing trend in the areas of artificial intelligence and machine learning is reflected
in the high level of demand for solutions that will ensure efficient and effective power
management (high-voltage and low-voltage power transistors, microcontrollers and
control ICs) for data centers and humanoid robots.
We also see opportunities in the area of IoT, where we can use our extensive knowhow
in embedded control, connectivity, security and software to tap into new markets
and gain new customers.
Infineon | Annual Report 2025
80
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
Opportunities arising from the growth of semiconductor content in vehicles
We expect semiconductor content per vehicle to continue growing. The driving forces
behind this trend are the rising demand for electromobility, active safety and comfort
features and the move towards software-defined architectures.
We are convinced that current global carbon emissions targets cannot be achieved
without further electrification. The need for increased efforts in this field is relevant
not only for electromobility (i.e., hybrid, plug-in hybrid and all-electric vehicles) but
also for auxiliary aggregates in all vehicles. Moreover, the trend towards automated
and assisted driving offers great potential for our sensors and microcontrollers.
Opportunities arising from new technologies and materials
We are constantly striving to develop new technologies, products and solutions and
to improve on existing ones, both separately and in collaboration with customers.
We therefore continually invest in areas such as research and development into the
use of new technologies and materials. Those in current use may well lose their
predominance in the foreseeable future (such as Si, which is reaching its physical
limits in some applications).
We therefore see a variety of opportunities for working with new materials, such as
SiC and GaN, to develop more powerful and/or more cost-effective products. These
materials could well have a positive influence on our ability to attain our strategic
growth and profitability targets.
Opportunities relating to market access and activities in China
China is one of the world’s largest automotive markets, and its growth potential
remains high. In particular, high rates of growth for electric-powered vehicles make
China one of the largest markets for electromobility.
China is also the leading market in the field of renewable energy. Our presence there,
alongside our collaboration with leading companies in the wind and solar power
sectors, will create further opportunities for long-term growth.
Operational opportunities
Opportunities arising from our ability to supply
customer requirements due to available capacity
Our in-house manufacturing capacities, together with those of our external partners,
provide us with a degree of flexibility to meet demand. In particular, the further
expansion of 300-millimeter production on the Dresden site (Germany) and the third
manufacturing module in Kulim (Malaysia) will strengthen our ability to meet the
growing demand for power semiconductors and analog/mixed-signal semiconductors.
The investment in ESMC in Dresden is an important step in this context.
Financial opportunities
Currency opportunities
Just as there are risks arising from currencies, as described in the risk section above,
there are also opportunities for Infineon in this area if exchange rates move in a way
that is favorable to the Group. This could have a positive impact on Infineon’s financial
condition, liquidity and results of operations.
Other opportunities arising from Infineon’s liquidity situation
Our current liquidity position, which is described in detail in the chapter “Review of
liquidity”, p. 58 ff., provides us with the financial flexibility for organic growth and
growth by acquisition and enables us to make use of favorable refinancing conditions,
if necessary.
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Report on outlook, risk and opportunity
Risk and opportunity report
In addition to reporting on Infineon as a whole, we also provide informationin the
following section, on the position and performance of Infineon Technologies AG.
Infineon Technologies AG is the parent company of Infineon and performs the Group’s
management and corporate functions. Infineon Technologies AG is responsible for
key Group-wide functions such as Finance and Accounting, central Finance & Treasury
Management, Investor Relations, Corporate Compliance, Internal Audit, Business
Continuity, Business Excellence, Information Technology, Strategy, Mergers and
Acquisitions, Legal and Patents, Human Resources, strategic and production-oriented
research and development activities, and Corporate and Marketing Communication
worldwide. It also manages the Group’s supply chain processes. Infineon Technolo-
gies AG has its own manufacturing facilities, located in Regensburg and Warstein
(both in Germany).
Unlike the Consolidated Financial Statements, which are prepared in accordance
with IFRS Accounting Standards, the Separate Financial Statements of Infineon
Technologies AG are prepared in accordance with the provisions of the German
Commercial Code (HGB) and the German Stock Corporation Act (AktG). The complete
Separate Financial Statements are published separately.
www.infineon.com/financial-statements-hgb
Results of operations
Statement of income of Infineon Technologies AG in accordance with
the German Commercial Code (condensed)
€ in millions
2025
2024
Change
absolute
in %
Revenue
9,427
9,443
(16)
–
Cost of goods sold 1
(6,002)
(5,843)
(159)
3
Gross profit
3,425
3,600
(175)
(5)
Research and development expenses 1
(1,823)
(1,638)
(185)
11
Selling expenses
(547)
(506)
(41)
8
General and administrative expenses
(316)
(313)
(3)
1
Other income (expense), net
32
(330)
362
+++
Result from investments
49
(5)
54
+++
Interest result
52
78
(26)
(33)
Other financial result
(5)
49
(54)
–––
Income taxes
(219)
(276)
57
(21)
Income after taxes/net profit
648
659
(11)
(2)
Transfer to retained earnings
(191)
(202)
11
(5)
Unappropriated profit
457
457
–
–
1 In order to provide more meaningful information, the accounting policy was changed as of 1 October 2024 with regard to the
allocation of certain expenses. This led to a reclassification of expenses from cost of goods sold to research and development
expenses amounting to €83 million.The previous year’s figures have not been adjusted; the corresponding effect in the previous year
would also have been €83 million.
Infineon Technologies AG
Infineon | Annual Report 2025
82
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon Technologies AG
Revenue generated by Infineon Technologies AG in the 2025 fiscal year was €9,427
million, virtually the same as the previous year figure of €9,443 million. External reve-
nue declined, reflecting Group-wide developments driven by lower selling prices and
currency fluctuations. Gross profit decreased by 5 percent to €3,425 million (previous
year: €3,600 million). Operating expenses (research and development expenses,
selling expenses and general and administrative expenses) in the 2025 fiscal year
increased to €2,686 million (previous year: €2,457 million) partly due to higher internal
Group cost allocations. The net amount of other income and expenses improved
year-on-year by €362 million, from net expenses of €330 million in the 2024 fiscal year
to net income of €32 million in the 2025 fiscal year. In particular, the previous year’s
figure contained €234 million in expenses attributable to Infineon Technologies AG due
to the conclusion of legal proceedings and resultant court settlement in connection
with the insolvency of Qimonda. The interest result declined by €26 million, primarily
due to lower income from plan assets for pensions and similar commitments. The
income tax expense decreased by €57 million, reflecting the lower profit before taxes.
The net profit of Infineon Technologies AG for the 2025 fiscal year was €648 million,
in comparison to €659 million in the previous fiscal year. After transferring a total
of €191 million to retained earnings, unappropriated profit amounted to €457 million.
Financial condition and liquidity
Statement of Financial Position of Infineon Technologies AG
in accordance with the German Commercial Code (condensed)
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Intangible assets, property, plant and equipment
596
627
(31)
(5)
Financial assets
14,660
13,549
1,111
8
Non-current assets
15,256
14,176
1,080
8
Inventories
2,328
2,329
(1)
–
Receivables and other assets
4,808
4,313
495
11
Marketable securities, cash and cash equivalents
1,728
1,709
19
1
Current assets
8,864
8,351
513
6
Prepaid expenses
116
106
10
9
Total assets
24,236
22,633
1,603
7
Share capital
2,604
2,598
6
0
Capital reserve
3,623
3,599
24
1
Retained earnings
4,517
4,250
267
6
Unappropriated profit
457
457
–
–
Equity
11,201
10,904
297
3
Provisions for pensions and similar commitments
294
339
(45)
(13)
Other provisions
1,100
1,022
78
8
Provisions
1,394
1,361
33
2
Bonds
4,044
4,391
(347)
(8)
Loans payable to banks
1,858
–
1,858
+++
Advance payments received
14
30
(16)
(53)
Trade payables
302
381
(79)
(21)
Liabilities to affiliated companies
and participating interests
4,595
4,826
(231)
(5)
Other liabilities
828
739
89
12
Liabilities
11,641
10,367
1,274
12
Deferred income
–
1
(1)
–––
Total liabilities and equity
24,236
22,633
1,603
7
Infineon | Annual Report 2025
83
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon Technologies AG
Total assets increased by 7 percent to €24,236 million as of 30 September 2025,
compared to €22,633 million as of 30 September 2024. Non-current assets rose
year-on-year by €1,080 million, mainly due to the increase in loans to and deposits
with affiliated companies as part of the intragroup financing of the acquisition
of Marvell’s Automotive Ethernet business.
Current assets increased by €513 million. Receivables and other assets increased
by €495 million, primarily due to a €558 million rise in receivables from affiliated
companies, whereas other assets declined by €50 million. Marketable securities and
cash and cash equivalents rose by €19 million to €1,728 million (30 September 2024:
€1,709 million) and accounted for 19 percent of current assets (30 September 2024:
20 percent).
The increase in equity of €297 million was primarily due to the net profit of €648 million
generated in the 2025 fiscal year. Share-based payment contributed €114 million
to the increase in equity. This was offset by the dividend payment for the 2024 fiscal
year of €455 million. The equity ratio declined to 46.2 percent (30 September 2024:
48.2 percent).
Liabilities rose in the 2025 fiscal year by €1,274 million to €11,641 million. This increase
was mainly due to the €1,858 million increase in liabilities to banks to finance the
acquisition of Marvell’s Automotive Ethernet business. Liabilities from bonds, on
the other hand, declined by €347 million and liabilities to affiliated companies and
participating interests decreased by €231 million. Provisions increased by €33 million
to €1,394 million (30 September 2024: €1,361 million).
For information on Infineon’s own shares, see the comments relating to
section 160 (1) No. 2 of the German Stock Corporation Act (AktG) provided in the
Separate Financial Statements of Infineon Technologies AG.
www.infineon.com/financial-statements-hgb
Information in accordance with sections 289a and 315a of the German Commercial
Code (HGB) is provided in the chapter “Corporate Governance”, p. 86 ff.
Infineon | Annual Report 2025
84
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon Technologies AG
Expected developments and associated
significant risks and opportunities
The global orientation of the Group and its segments, as well as the associated
expected developments with their significant risks and opportunities, are relevant
for Infineon Technologies AG. The evolution of Infineon Technologies AG’s operating
result is influenced not only by the expectations for the Group but also by expectations
relating to the revenue and earnings in the operating segments. In addition to its own
operating activities, Infineon Technologies AG’s future earnings are also affected by
the operating results of its subsidiaries due to existing intragroup supply, service and
financing relationships. Infineon Technologies AG is therefore integrated into the
Group’s internal management system.
In accordance with the German Stock Corporation Act (AktG), the amount of the
dividend available for distribution to shareholders is based on the level of unappro-
priated profit recorded by Infineon Technologies AG, as determined in accordance
with the German Commercial Code (HGB). Our dividend policy aims to allow our
shareholders to participate appropriately in Infineon’s success. Even in the event of
stagnant or declining earnings, our aim, at a minimum, is to pay out a dividend that
is unchanged from the previous year.
After making a transfer to other retained earnings, Infineon Technologies AG reported
an unappropriated profit of €457 million in its Separate Financial Statements for the
fiscal year ended 30 September 2025. The Company plans to propose a dividend of
€0.35 per share, the same figure as that agreed one year earlier, to the Annual General
Meeting in February 2026. The number of shares issued remained unchanged as of
30 September 2025 at 1,305,921,137. Assuming approval of the proposal by the Annual
General Meeting and taking into account the 4,226,590 own shares held by the
Company at the time of this report, which are not entitled to dividends, the expected
total dividend distribution to shareholders would amount to approximately €456 million.
The Company paid a dividend of €0.35 per share, (€455 million in total) for the 2024
fiscal year.
Unappropriated profit remained unchanged from the previous year. All in all, we
expect to generate unappropriated profit for the 2026 fiscal year that will allow us to
distribute a dividend in accordance with our dividend policy.
Infineon Technologies AG uses derivative financial instruments to mitigate currency
risks and other price risks. Derivatives are used only for hedging and not for speculative
purposes. Regular reviews are performed of the effectiveness of the hedging relation-
ship. Most transactions within the Group involving derivative financial instruments
are handled by Infineon Technologies AG. The comments provided in “Infineon’s
treasury principles and structure” in the chapter “Review of liquidity”, p. 60, also
apply to Infineon Technologies AG. Further information is provided in the Notes to
the Separate Financial Statements of Infineon Technologies AG.
www.infineon.com/financial-statements-hgb
Infineon | Annual Report 2025
85
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Infineon Technologies AG
Information pursuant to
sections 289a and 315a of the
German Commercial Code (HGB)
Structure of the subscribed capital
The share capital of Infineon Technologies AG stood at €2,611,842,274 as of 30 Septem-
ber 2025. This sum is divided into 1,305,921,137 no par value registered shares, each
of which represents a notional portion of the share capital of €2 per share. Each share
carries one vote and gives an equal right to the profit of the Company based on the
profit appropriation resolved by the shareholders at the Annual General Meeting.
The Company held 3,781,390 of the abovementioned issued shares as own shares
as of 30 September 2025 (30 September 2024: 6,757,925). Own shares held by the
Company on the date of the Annual General Meeting do not carry a vote and are not
entitled to participate in profit.
Restrictions on voting rights or the transfer of shares
Restrictions on the voting rights of shares may, in particular, arise as a result of the
regulations set out in the German Stock Corporation Act (Aktiengesetz – “AktG”). For
example, pursuant to section 136 AktG, shareholders are prohibited from voting under
certain circumstances and, pursuant to section 71b AktG, Infineon Technologies AG
has no voting rights on its own shares. Furthermore, non-compliance with the notifica-
tion requirements pursuant to section 33, paragraphs 1 or 2 of the German Securities
Trading Act (Wertpapierhandelsgesetz – “WpHG”) and section 38, paragraph 1, or
section 39, paragraph 1 WpHG can, pursuant to section 44 WpHG, have the effect that
certain rights (including the right to vote) may, at least temporarily, not exist. We are
not aware of any contractual restrictions on voting rights or on the transfer of shares.
Pursuant to section 67, paragraph 2 AktG, rights and obligations arising from shares
in relation to Infineon Technologies AG exist only for and from the parties entered
in the share register. In order to be recorded in the share register, shareholders are
required to submit to Infineon Technologies AG the number of shares held by them
and their name or company name, their postal and electronic address and, where
applicable, their registered office and their date of birth. Pursuant to section 67,
paragraph 4 AktG, Infineon Technologies AG is entitled to request information from
the party listed in the share register regarding the extent to which the shares relating
to the entry in the share register are actually owned by the registered party and,
if not, to receive the information necessary for the maintenance of the share register
in relation to the party for whom the shares are held. Section 67, paragraph 2 AktG
stipulates that the shares concerned do not confer voting rights until such time as the
information requested has been supplied in the appropriate manner.
Direct or indirect shareholdings exceeding
10 percent of the voting rights
Section 33, paragraph 1 WpHG requires each shareholder whose voting rights reach,
exceed or, after exceeding, fall below 3, 5, 10, 15, 20, 25, 30, 50 or 75 percent of the
voting rights of a listed corporation to notify such to the corporation and the German
Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungs
aufsicht – “BaFin”) immediately. As of 30 September 2025, we have not been notified
of any direct or indirect shareholdings reaching or exceeding 10 percent of the voting
rights. The shareholdings notified to us as of 30 September 2025 are presented in
the notes to the Separate Financial Statements of Infineon Technologies AG under
the information pursuant to section 160, paragraph 1, number 8 AktG.
Shares with special rights that confer control rights
No shares conferring special control rights have been issued.
Nature of control over voting rights when employees participate in
the Company’s capital and do not exercise their control rights directly
Employees who participate in the capital of Infineon Technologies AG exercise their
control rights directly in accordance with the applicable laws and the Articles of
Association, just like other shareholders.
Statutory regulations and Articles of Association provisions
governing the appointment and dismissal of the Management Board
members and amendments to the Articles of Association
Section 5, paragraph 1 of the Articles of Association stipulates that the Management
Board of Infineon Technologies AG is required to consist of at least two members.
Corporate Governance
Infineon | Annual Report 2025
86
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Corporate Governance
Information pursuant to the German Commercial Code (HGB)
With effect from 15 April 2021, the Management Board comprises five members.
Management Board members are appointed and dismissed by the Supervisory Board
pursuant to section 84, paragraph 1 AktG. As Infineon Technologies AG falls within
the scope of the German Co-Determination Act (Mitbestimmungsgesetz – “MitbestG”),
the appointment or dismissal of Management Board members requires a two-thirds
majority of the votes of the Supervisory Board members (section 31, paragraph 2
MitbestG). If the required majority is not achieved at the first ballot, the appointment
may be approved on the recommendation of the Mediation Committee at a second
ballot by a simple majority of the votes of the Supervisory Board members (section
31, paragraph 3 MitbestG). If the required majority is still not achieved, a third ballot
is held in which the Chairman of the Supervisory Board has two votes (section 31,
paragraph 4 MitbestG).
In urgent cases, if the Management Board does not have the required number of
members, the local court (“Amtsgericht” of Munich) makes the necessary appointment
upon the petition of a party concerned pursuant to section 85, paragraph 1 AktG.
Pursuant to section 84, paragraph 1, sentence 1 AktG, the maximum term of appointment
for Management Board members is five years. Re-appointment or an extension of
the term of office, in each case for a maximum of five years, is permitted (section 84,
paragraph 1, sentence 2 AktG). Section 5, paragraph 1 of the Articles of Association
and section 84, paragraph 2 AktG stipulate that the Supervisory Board may appoint
a Chairman and a deputy Chairman to the Management Board. The Supervisory Board
may revoke the appointment of a Management Board member and the Chairman of
the Management Board for good cause (section 84, paragraph 4 AktG).
Pursuant to section 179, paragraph 1 AktG, responsibility for amending the Articles of
Association rests with the Annual General Meeting. However, section 10, paragraph 4
of the Articles of Association gives the Supervisory Board the authority to amend the
Articles of Association insofar as any such amendment relates merely to the wording,
such as changes in the share capital amount resulting from a capital increase out of
conditional or authorized capital or a capital decrease by means of cancellation of own
shares. Unless the Articles of Association provide for another majority, section 179,
paragraph 2 AktG stipulates that resolutions of the Annual General Meeting regarding
the amendment of the Articles of Association require a majority of at least three-quarters
of the share capital represented. Section 17, paragraph 1 of the Articles of Association
of Infineon Technologies AG provides in principle for resolutions to be passed with a
simple majority of the votes cast and, when a capital majority is required, with a simple
majority of the capital, unless a higher majority is required by law or in accordance
with other stipulations contained in the Articles of Association.
Powers of the Management Board, particularly with respect
to issuing or buying back shares
Authorization to issue new shares
The power of the Management Board to issue shares derives from section 4 of the
Articles of Association of the Company, in conjunction with applicable legal provisions.
Further information relating to the Company’s existing Authorized and Conditional
Capital can be found in note 20 to the Consolidated Financial Statements, p. 138 ff.
Authorization to issue convertible bonds and/or bonds with warrants
The Annual General Meeting held on 23 February 2024 authorized the Management
Board, with the approval of the Supervisory Board, in the period through 22 February
2029, either once or in partial amounts, to issue convertible bonds and/or bonds with
warrants (referred to collectively as “bonds”) of an aggregate nominal amount of up to
€6,000,000,000, to guarantee such bonds issued by subordinated Group companies of
the Company and to grant creditors and/or holders of such bonds conversion or option
rights to up to 130,000,000 no par value registered Company shares, representing a
notional portion of the share capital of up to €260,000,000 in accordance with the relev
ant terms of the bonds. With the approval of the Supervisory Board, the Management
Board is authorized to exclude the right of shareholders to subscribe to the bonds
– if the issue price is not substantially lower than the bonds’ theoretical market value
as determined in accordance with accepted valuation methods, particularly those
based on financial mathematics. However, this right of exclusion only applies insofar
as the aggregate value of the shares to be issued to service the conversion or option
rights established on this basis does not exceed 10 percent of the share capital, either
at the time the resolution concerning this authorization was passed by the Annual
General Meeting, or at the time of this authorization becoming effective, or at the
time it is exercised;
Infineon | Annual Report 2025
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Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Corporate Governance
Information pursuant to the German Commercial Code (HGB)
– in order to exclude fractional amounts resulting from a given subscription ratio
from the subscription rights of the shareholders to the bonds or insofar as any such
action is necessary in order to grant holders of conversion or option rights arising
from bonds that have already been or will in future be issued by the Company or its
subordinated Group companies subscription rights to that extent to which they would
be entitled after exercising their rights, or after the fulfillment of any conversion or
option obligations; or
– insofar as bonds are issued in return for a capital contribution in kind, provided that
the value of any such capital contribution in kind is appropriate in relation to the
market value of the bonds.
Even if the dilution protection regulations are applied, the conversion or option
price must equal at least 80 percent of the arithmetic mean of the closing prices
of the Company’s share in Xetra trading on the Frankfurt Stock Exchange (or a
comparable successor system). Further details – including the conditions under
which the conversion or option price may be reduced – are set out in the authorization.
Subject to the requirements resolved by the shareholders at the Annual General
Meeting, the Management Board is authorized to determine the further details of the
bond issue, including its terms and conditions.
Authorization to acquire own shares
A resolution passed by the Annual General Meeting on 16 February 2023 authorized
Infineon Technologies AG, in the period through 15 February 2028, to acquire its
own shares, within the statutory boundaries, in an aggregate amount not exceeding
10 percent of the share capital at the time the resolution was passed or – if the latter
amount is lower – of the share capital in existence at the time the authorization is
exercised. The Company may not use the authorization for the purpose of trading in
its own shares. The Management Board decides whether own shares are acquired
through the stock exchange, by means of a public offer to purchase addressed to
all shareholders, a public invitation to submit offers for sale, or via a bank or other
entity that meets the requirements of section 186, paragraph 5, sentence 1 AktG.
The authorization includes differentiating requirements – in particular with regard to
the permissible purchase price – for each method of acquisition.
Infineon shares acquired or being acquired on the basis of this or an earlier authorization
may – if not sold either via the stock exchange or by means of a public offer to purchase
addressed to all shareholders – be used for all legally permissible purposes. The
shares may also be canceled or offered to third parties in conjunction with business
combinations or the acquisition of companies, parts of companies or participations
in companies, as well as being offered and transferred to other depositable assets
related to such an acquisition project. Under specified circumstances, subject to the
approval of the Supervisory Board, the shares may also be sold to third parties in
return for cash payment (including by means other than through the stock exchange
or through an offer to all shareholders); used to meet the Company’s obligations
under convertible bonds and bonds with warrants; offered for sale or granted as a
remuneration component to members of the Company’s Management Board, members
of the management boards and other boards of affiliated companies and employees of
the Company or of its affiliated companies; and, finally, used to repay securities-backed
loans. The subscription rights of shareholders are excluded in the cases mentioned
above. In addition, the subscription rights of shareholders are excluded in respect of
fractional amounts in instances in which the shares are sold through a public offer
addressed to all shareholders.
According to a resolution passed by the Annual General Meeting on 16 February 2023,
shares in Infineon Technologies AG may also be acquired using equity derivatives.
The total number of shares that can be acquired using derivatives may not exceed
5 percent of the Company’s share capital, either at the time of this authorization
becoming effective or at the time of its exercise through the use of the derivatives.
The shares acquired through the exercise of this authorization are to be counted
toward the acquisition threshold for the shares acquired in accordance with the
authorization to acquire own shares as described above. The authorization stipulates
other restrictions when derivatives are deployed, including with regard to their
execution, term, servicing and purchase price.
Infineon | Annual Report 2025
88
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Corporate Governance
Information pursuant to the German Commercial Code (HGB)
If own shares are acquired using derivatives in accordance with the requirements
stipulated in the authorization, any right of the shareholders to conclude such derivative
transactions with the Company will be excluded in the analogous application of
section 186, paragraph 3, sentence 4 AktG. Shareholders have no right to conclude
derivative transactions with the Company.
Shareholders have a right to sell their Infineon shares in this connection only insofar
as the Company is required to accept the shares under the derivative transactions.
No other right to sell shares shall apply in this connection.
The use of own shares acquired through derivatives is governed by the same rules as
those applicable for the direct acquisition of own shares.
Significant agreements of the Company that are subject to the
condition of a change of control as a result of a takeover bid
and remuneration agreements with Management Board members
or employees in the event of a takeover bid
Various financing agreements with lending banks and capital market creditors
contain defined change-of-control clauses that give creditors the right to demand
early repayment; these clauses reflect standard market practice.
Furthermore, certain patent cross-licensing agreements, development agreements,
subsidy agreements and approvals, supply contracts, joint venture agreements and
license agreements contain customary change-of-control clauses, which, in the event
of a change of control at Infineon Technologies AG, make the continuation of the
agreement dependent on the consent of the contracting party, grant special rights
to the contracting party that may be unfavorable for Infineon, or even entitle the
contracting party to terminate the agreement.
If a Management Board member leaves their position in connection with a defined
change of control, that member is entitled to continued payment of the relevant
annual remuneration for the remaining contract term up to a maximum period
of 24 months. Further details are contained in the Remuneration Report (see the
chapter “Remuneration Report”).
The change-of-control clauses agreed to by Management Board members are intended
to provide financial security to those members in the event of a change of control,
with a view to preserving their independence in this situation.
The conditions of both the Performance Share Plan and the Restricted Stock Unit Plan,
in which Infineon managers and other selected employees worldwide participate,
contain rules that are triggered in the event of a defined change of control. For the most
part, these rules specify that the vesting periods that are envisaged by the relevant
plans are aborted in the event of a change of control. Although Management Board
members also participate in the Performance Share Plan, the rules therein relating
to a change of control do not apply to Management Board members, given that their
service contracts take precedence.
Infineon | Annual Report 2025
89
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Corporate Governance
Information pursuant to the German Commercial Code (HGB)
Statement on Corporate Governance
pursuant to sections 289f and 315d
of the German Commercial Code (HGB)
The Statement on Corporate Governance pursuant to sections 289f and 315d of the
German Commercial Code (HGB) is publicly available.
www.infineon.com/declaration-on-corporate-governance
Remuneration Report
The Remuneration Report is publicly available.
www.infineon.com/remuneration-report
The references to the Remuneration Report were not audited as part of the audit
of the financial statements. The Remuneration Report was subjected to a separate
substantive audit by the auditor in accordance with IDW Auditing Standard 490.
This audit also includes the formal audit required by section 162, paragraph 3 of the
German Stock Corporation Act (AktG).
List of references
R01
International Monetary Fund (IMF):
World Economic Outlook. October 2025.
R02
World Semiconductor Trade Statistics (WSTS):
Semiconductor Industry Bluebook History. September 2025.
R03
Based on or includes research from Omdia:
Competitive Landscaping Tool CLT Annual – 2Q25. August 2025.
Neubiberg, 24 November 2025
Management Board
Jochen Hanebeck
Alexander Gorski
Elke Reichart
Dr. Sven Schneider
Andreas Urschitz
Infineon | Annual Report 2025
90
Further information
Consolidated Financial Statements
Management Board and Supervisory Board
Combined Management Report
Corporate Governance | List of references
Statement on Corporate Governance of the German
Commercial Code (HGB) | Remuneration Report
92
Consolidated Statement of Profit or Loss
93
Consolidated Statement of Comprehensive Income
94
Consolidated Statement of Financial Position
95
Consolidated Statement of Cash Flows
96
Consolidated Statement of Changes in Equity
98
Notes to the Consolidated Financial Statements
Consolidated Financial Statements
91
Infineon | Annual Report 2025
€ in millions
Notes
2025
2024
Change
absolute
in %
Revenue
4, 29
14,662
14,955
(293)
(2)
Cost of goods sold 1
(8,909)
(8,710)
(199)
2
Gross profit
5,753
6,245
(492)
(8)
Research and development expenses 1
(2,227)
(2,161)
(66)
3
Selling, general and administrative expenses
(1,582)
(1,554)
(28)
2
Other operating income
108
58
50
86
Other operating expenses
4
(537)
(398)
(139)
35
Operating profit
1,515
2,190
(675)
(31)
Financial income
4
81
119
(38)
(32)
Financial expenses
4
(231)
(162)
(69)
43
Share of profit (loss) of associates and joint ventures accounted for using the equity method
5
10
11
(1)
(9)
Profit (loss) from continuing operations before income taxes
1,375
2,158
(783)
(36)
Income taxes
6
(370)
(378)
8
(2)
Profit (loss) from continuing operations
1,005
1,780
(775)
(44)
Profit (loss) from discontinued operations, net of income taxes
7
10
(479)
489
+++
Profit (loss) for the period
1,015
1,301
(286)
(22)
Attributable to:
Shareholders and hybrid capital investors of Infineon Technologies AG
1,015
1,301
(286)
(22)
Basic earnings per share (in euro) from continuing operations 2
8
0.76
1.35
(0.59)
(44)
Basic earnings per share (in euro) from discontinued operations 2
8
0.01
(0.37)
0.38
+++
Basic earnings per share (in euro) attributable to shareholders of Infineon Technologies AG 2
8
0.77
0.98
(0.21)
(21)
Diluted earnings per share (in euro) from continuing operations 2
8
0.76
1.34
(0.58)
(43)
Diluted earnings per share (in euro) from discontinued operations 2
8
–
(0.37)
0.37
+++
Diluted earnings per share (in euro) attributable to shareholders of Infineon Technologies AG 2
8
0.76
0.97
(0.21)
(22)
1 In order to provide more meaningful information, the accounting policy was changed as of 1 October 2024 with regard to the allocation of certain expenses.
This led to a reclassification of expenses from cost of goods sold to research and development expenses. The previous year’s figures have been adjusted accordingly.
2 The calculation of earnings per share is based on unrounded figures.
Consolidated Statement of Profit or Loss
92
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
€ in millions
Notes
2025
2024
Change
absolute
in %
20
Profit (loss) for the period
1,015
1,301
(286)
(22)
Actuarial gains (losses) on pensions and similar commitments
66
(32)
98
+++
Total items that will not be reclassified subsequently to profit or loss
66
(32)
98
+++
Currency effects
(366)
(519)
153
(29)
Gains (losses) resulting from hedge accounting
6
9
(3)
(33)
Cost of hedging
5
6
(1)
(17)
Total items that may be reclassified subsequently to profit or loss
(355)
(504)
149
(30)
Other comprehensive income (loss), net of tax
(289)
(536)
247
(46)
Total comprehensive income (loss), net of tax
726
765
(39)
(5)
Attributable to:
Shareholders and hybrid capital investors of Infineon Technologies AG
726
765
(39)
(5)
Consolidated Statement of Comprehensive Income
93
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
30 Sep-
tember
2025
30 Sep-
tember
2024
Change
€ in millions
absolute
in %
ASSETS
Cash and cash equivalents
1,356
1,806
(450)
(25)
Financial investments
9
746
395
351
89
Trade receivables
10
2,249
2,250
(1)
–
Inventories
11
4,141
3,990
151
4
Current income tax receivables
6
73
101
(28)
(28)
Contract assets
106
105
1
1
Other current assets
12, 27
1,107
1,146
(39)
(3)
Assets classified as held for sale
7
45
–
45
+++
Total current assets
9,823
9,793
30
0
Property, plant and equipment
13
8,142
8,002
140
2
Goodwill
14
7,849
6,797
1,052
15
Other intangible assets
13
3,274
2,820
454
16
Right-of-use assets
15
402
374
28
7
Investments accounted for
using the equity method
5
100
117
(17)
(15)
Non-current income tax receivables
6
20
1
19
+++
Deferred tax assets
6
250
264
(14)
(5)
Other non-current assets
12, 27
610
471
139
30
Total non-current assets
20,647
18,846
1,801
10
Total assets
30,470
28,639
1,831
6
Notes
30 Sep-
tember
2025
30 Sep-
tember
2024
Change
€ in millions
absolute
in %
LIABILITIES AND EQUITY
Short-term financial debt and
current portion of long-term financial debt
16
1,047
500
547
+++
Trade payables
2,011
1,990
21
1
Current provisions
17
660
698
(38)
(5)
Current income tax payables
6
331
301
30
10
Current lease liabilities
15
82
73
9
12
Current contract liabilities
71
75
(4)
(5)
Other current liabilities
18, 27
1,566
1,509
57
4
Liabilities classified as held for sale
7
16
–
16
+++
Total current liabilities
5,784
5,146
638
12
Long-term financial debt
16
5,782
4,311
1,471
34
Pensions and similar commitments
19
212
303
(91)
(30)
Deferred tax liabilities
6
133
177
(44)
(25)
Other non-current provisions
17
111
196
(85)
(43)
Non-current lease liabilities
15
305
284
21
7
Non-current contract liabilities
128
152
(24)
(16)
Other non-current liabilities
18, 27
964
851
113
13
Total non-current liabilities
7,635
6,274
1,361
22
Total liabilities
13,419
11,420
1,999
18
Equity:
20
Ordinary share capital
2,612
2,612
–
–
Capital reserve
6,886
6,763
123
2
Retained earnings
7,576
6,978
598
9
Other reserves
(505)
(150)
(355)
–––
Own shares/obligation to acquire own shares
(120)
(187)
67
(36)
Hybrid capital
602
1,203
(601)
(50)
Total equity
17,051
17,219
(168)
(1)
Total liabilities and equity
30,470
28,639
1,831
6
Consolidated Statement of Financial Position
94
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
€ in millions
Notes
2025
2024
Change
absolute
in %
26
Profit (loss) for the period
1,015
1,301
(286)
(22)
Plus: profit (loss) from discontinued operations,
net of income taxes
(10)
479
(489)
–––
Adjustments to reconcile profit (loss) for the
period to cash flows from operating activities:
Depreciation and amortization
13, 15, 29
1,917
1,865
52
3
Income tax
6
370
378
(8)
(2)
Interest result
4
161
74
87
+++
Losses (gains) on disposals of property,
plant and equipment and intangible assets
(9)
4
(13)
–––
Dividends received
5
2
4
(2)
(50)
Impairments (reversals of impairments)
13, 14, 29
272
123
149
+++
Losses (gains) from sales of businesses,
interests in subsidiaries and investments
(12)
5
(17)
–––
Share-based payment
22
188
130
58
45
Other non-cash result
(15)
16
(31)
–––
Change in trade receivables
10
(31)
(279)
248
(89)
Change in inventories
11
(179)
(60)
(119)
–––
Change in trade payables
63
(750)
813
+++
Change in provisions
17
(110)
20
(130)
–––
Change in other assets and other liabilities
79
830
(751)
(90)
Interest received
4
54
80
(26)
(33)
Interest paid
4
(152)
(146)
(6)
4
Income taxes paid
6
(425)
(533)
108
(20)
Cash flows from operating activities
from continuing operations
3,178
3,541
(363)
(10)
Cash flows from operating activities
from discontinued operations
39
(761)
800
+++
Cash flows from operating activities
3,217
2,780
437
16
€ in millions
Notes
2025
2024
Change
absolute
in %
Payments for the acquisition of financial investments
9
(6,301)
(7,027)
726
(10)
Proceeds from sales of financial investments
9
5,956
8,378
(2,422)
(29)
Payments for the acquisition of subsidiaries or
other businesses, net of cash acquired
3
(2,188)
(803)
(1,385)
–––
Proceeds from sales of subsidiaries or
other businesses, net of cash disbursed
93
19
74
+++
Payments for the acquisition of interests
in unconsolidated companies,
associated companies and joint ventures
(92)
(29)
(63)
–––
Proceeds from sales of interests
in unconsolidated companies,
associated companies or joint ventures
38
–
38
+++
Payments for the acquisition of
other intangible assets
13
(294)
(287)
(7)
2
Payments for the acquisition of
property, plant and equipment
13
(1,800)
(2,432)
632
(26)
Proceeds from sales of property, plant
and equipment, intangible assets
and other non-current assets
14
14
–
–
Cash flows from investing activities
(4,574)
(2,167)
(2,407)
–––
Proceeds from issuance of short-term financial debt
16
700
2,250
(1,550)
(69)
Repayments of short-term financial debt
16
(700)
(2,250)
1,550
(69)
Proceeds from issuance of long-term financial debt
16
2,605
500
2,105
+++
Repayments of long-term financial debt
and hybrid capital
16, 20
(1,100)
(323)
(777)
–––
Net cash in-/outflow from changes in financial
receivables and payables from/to related party
25
(1)
10
(11)
–––
Payments for lease liabilities
15
(85)
(74)
(11)
15
Payments for the acquisition of own shares
(8)
(233)
225
(97)
Dividend payments
20
(455)
(456)
1
–
Cash outflow to hybrid capital investors
20
(36)
(39)
3
(8)
Cash flows from financing activities
920
(615)
1,535
+++
Net change in cash and cash equivalents
(437)
(2)
(435)
–––
Currency effects on cash and cash equivalents
(7)
(12)
5
(42)
Cash and cash equivalents reclassified as held for sale
(6)
–
(6)
–––
Cash and cash equivalents at beginning of period
1,806
1,820
(14)
(1)
Cash and cash equivalents at end of period
1,356
1,806
(450)
(25)
Consolidated Statement of Cash Flows
95
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
€ in millions
Notes
Share
capital
Capital
reserve
Retained
earnings
Other reserves
Own shares/
obligation
to acquire
own shares
Equity
attributable to
shareholders
of Infineon
Technologies
AG
Equity
attributable to
hybrid capital
investors
Total equity
Currency
effects
Hedges
Cost of
hedging
Balance as of 1 October 2024
2,612
6,763
6,978
(177)
25
2
(187)
16,016
1,203
17,219
Total comprehensive income (loss), net of tax
Profit (loss) for the period
–
–
987
–
–
–
–
987
28
1,015
Other comprehensive income (loss), net of tax
–
–
66
(366)
6
5
–
(289)
–
(289)
Total comprehensive income (loss), net of tax
–
–
1,053
(366)
6
5
–
698
28
726
Transactions with owners
Contributions by and distributions to owners
Dividends
20
–
–
(455)
–
–
–
–
(455)
–
(455)
Share-based payment
20, 22
–
212
–
–
–
–
–
212
–
212
Settlement of share-based payment
20
–
(91)
–
–
–
–
91
–
–
–
Purchase of own shares/obligation
to acquire own shares
20
–
–
–
–
–
–
(23)
(23)
–
(23)
Other contributions and distributions
20
–
9
–
–
–
–
(1)
8
–
8
Total contributions by and distributions to owners
–
130
(455)
–
–
–
67
(258)
–
(258)
Total transactions with owners
–
130
(455)
–
–
–
67
(258)
–
(258)
Transactions with hybrid capital investors
Compensation of hybrid capital investors
20
–
(7)
–
–
–
–
–
(7)
(629)
(636)
Total transactions with hybrid capital investors
–
(7)
–
–
–
–
–
(7)
(629)
(636)
Balance as of 30 September 2025
2,612
6,886
7,576
(543)
31
7
(120)
16,449
602
17,051
Consolidated Statement of Changes in Equity
for the fiscal year ended 30 September 2025
96
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Consolidated Statement of Changes in Equity
for the fiscal year ended 30 September 2024
€ in millions
Notes
Share
capital
Capital
reserve
Retained
earnings
Other reserves
Own shares
Equity
attributable to
shareholders
of Infineon
Technologies
AG
Equity
attributable to
hybrid capital
investors
Total equity
Currency
effects
Hedges
Cost of
hedging
Balance as of 1 October 2023
2,612
6,684
6,204
342
16
(4)
(13)
15,841
1,203
17,044
Total comprehensive income (loss), net of tax
Profit (loss) for the period
–
–
1,262
–
–
–
–
1,262
39
1,301
Other comprehensive income (loss), net of tax
–
–
(32)
(519)
9
6
–
(536)
–
(536)
Total comprehensive income (loss), net of tax
–
–
1,230
(519)
9
6
–
726
39
765
Transactions with owners
Contributions by and distributions to owners
Dividends
20
–
–
(456)
–
–
–
–
(456)
–
(456)
Share-based payment
20, 22
–
130
–
–
–
–
–
130
–
130
Settlement of share-based payment
20
–
(63)
–
–
–
–
63
–
–
–
Purchase of own shares
20
–
–
–
–
–
–
(237)
(237)
–
(237)
Other contributions and distributions
20
–
12
–
–
–
–
–
12
–
12
Total contributions by and distributions to owners
–
79
(456)
–
–
–
(174)
(551)
–
(551)
Total transactions with owners
–
79
(456)
–
–
–
(174)
(551)
–
(551)
Transactions with hybrid capital investors
Compensation of hybrid capital investors
20
–
–
–
–
–
–
–
–
(39)
(39)
Total transactions with hybrid capital investors
–
–
–
–
–
–
–
–
(39)
(39)
Balance as of 30 September 2024
2,612
6,763
6,978
(177)
25
2
(187)
16,016
1,203
17,219
97
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
The Infineon Group (“Infineon”), comprising Infineon Technologies AG (hereafter
also referred to as “the Company”) and its direct and indirect subsidiaries, develops,
manufactures and markets a wide variety of semiconductors and semiconductor-based
solutions. The focus here is on the two long-term growth trends of decarbonization
and digitalization. The product range essentially comprises semiconductors for auto-
motive electronics, industrial applications and renewable energies, sensor technology
for all end markets, power supplies in general and, in particular, for data centers
with artificial intelligence, telecommunications networks and consumer-oriented
applications, activities relating to the IoT including Edge AI as well as traditional and
new security applications. Research and development sites, manufacturing facilities,
investments and customers are located mainly in Europe, Asia and North America.
Infineon Technologies AG is a listed company under German law and the ultimate
parent company of Infineon. The principal office of the Company is Am Campeon 1 – 15,
85579 Neubiberg (Germany). The Company is registered in the Commercial Register
of the local court of Munich (Germany) under the number HRB 126492.
1 Basis of the Consolidated Financial Statements
The Consolidated Financial Statements for the year ended 30 September 2025, prepared
by Infineon Technologies AG as the ultimate parent company, have been prepared
in accordance with IFRS® Accounting Standards and related IFRIC® Interpretations
effective as of 30 September 2025 as issued by the International Accounting Standards
Board (“IASB”) to the extent to which these Accounting Standards and Interpretations
have been endorsed by the European Union (“EU”) as well as the additionally appli-
cable agenda decisions. The Consolidated Financial Statements also comply with the
supplementary requirements set out in section 315e, paragraph 1 of the German
Commercial Code (“Handelsgesetzbuch” or “HGB”). The aforementioned standards
were complied with in full.
The Consolidated Statement of Profit or Loss is presented using the cost of sales
method.
The fiscal year-end for both Infineon and the Company is 30 September of each year.
The Group’s reporting currency is the euro (“€”).
Deviations between amounts presented are possible due to rounding. Negative
amounts are presented in parentheses.
The Company’s Management Board presented the Consolidated Financial Statements
on 24 November 2025.
Financial reporting rules applied for the first time
The IASB has issued the following Accounting Standards or Amendments to Accounting
Standards, which are required to be applied in the Consolidated Financial Statements
for the year ended 30 September 2025:
Standard/amendment/interpretation
Effective date
Impact
on Infineon
IAS 1
Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants (Amendments to IAS 1)
1 January 2024
none
IAS 7 and
IFRS 7
Supplier Finance Arrangements
(Amendments to IAS 7 and IFRS 7)
1 January 2024
none
IFRS 16
Lease Liability in a Sale and Leaseback
(Amendments to IFRS 16)
1 January 2024
none
In order to provide more meaningful information, the accounting policy for the
allocation of certain expenses was changed as of 1 October 2024. This led to a
reclassification of expenses from cost of goods sold to research and development
expenses. The previous year’s figures have been adjusted accordingly, resulting
in a reclassification of €176 million for the 2024 fiscal year.
Notes to the Consolidated Financial Statements
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Consolidated Financial Statements
Notes
Financial reporting rules issued but not yet applied
The following new or amended Accounting Standards have been issued by the IASB
and will be relevant to Infineon from today’s perspective. They have not been applied
in the Consolidated Financial Statements as of 30 September 2025 since they are
not yet mandatory or, alternatively, have not yet been endorsed by the EU. The new
or amended Accounting Standards are applicable for fiscal years beginning on or
after their respective effective date. As a general rule, they are not applied before their
effective date, even if this is permitted for certain Accounting Standards.
Standard/amendment/interpretation
Effective date
Impact
on Infineon
IAS 21
Lack of Exchangeability (Amendments to IAS 21)
1 January 2025
none
IFRS 9 and
IFRS 7
Amendments to the Classification and Measurement of
Financial Instruments (Amendments to IFRS 9 and IFRS 7)
1 January 2026
immaterial
IFRS 9 and
IFRS 7
Contracts Referencing Nature-dependent Electricity
(Amendments to IFRS 9 and IFRS 7)
1 January 2026
immaterial
Annual Improvements to
IFRS Accounting Standards – Volume 11
1 January 2026
none
IFRS 18
Presentation and Disclosure in Financial Statements
1 January 2027
see explanations
below
IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 18 contains requirements for all companies that apply IFRS Accounting Standards
regarding the type of presentation and disclosure of information in financial statements.
IFRS 18 replaces IAS 1 “Presentation of Financial Statements”.
The new standard is effective for annual reporting periods beginning on or after
1 January 2027. Accordingly, Infineon will apply the standard from the fiscal year
beginning 1 October 2027. Infineon has started to assess the quantitative and
qualitative effects of the application of IFRS 18 on the Consolidated Financial
Statements, but cannot yet reliably estimate their extent.
2 Summary of significant accounting policies
Basis of consolidation
The Consolidated Financial Statements presented here include the individual financial
statements of Infineon Technologies AG and its direct and indirect subsidiaries on a
consolidated basis. A subsidiary is defined as an entity directly or indirectly, controlled
by Infineon Technologies AG.
Control exists when Infineon is subjected to variable returns arising from its engage-
ment with the subsidiary or has a right to such and has the ability to influence these
returns as a result of its power over the subsidiary. Power means that Infineon has
existing rights that give it the ability to direct the relevant activities of the subsidiary,
that is, the activities that significantly affect the aforementioned returns.
An entity is included in the Consolidated Financial Statements from the date on
which Infineon acquires control. Upon first-time consolidation of an entity, the
acquired assets and assumed liabilities are generally measured on the basis of their
fair value at the acquisition date. Any excess of consideration paid (purchase price)
over the share of the fair value of acquired assets, liabilities and contingent liabilities
is recognized as goodwill. Any excess of Infineon’s share of the fair value of items
acquired over consideration paid is, after re-examination, recognized as a gain.
The financial statements of entities included in the Consolidated Financial Statements
are prepared using uniform valuation and accounting policies.
The balance sheet effects of intragroup transactions, as well as gains and losses
arising from intragroup business relationships, are eliminated on consolidation.
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Consolidated Financial Statements
Notes
A list of subsidiaries of Infineon Technologies AG is provided in note 30. p. 169 ff.
In the absence of control over an entity, but where the entity is a joint venture or an
associated company, this is included in the Consolidated Financial Statements using
the equity method (see note 5, p. 116). Where objective indications of impairment
in the carrying amount of an equity-based investment are present, an impairment
test is carried out. If the carrying amount exceeds the recoverable amount, an impair-
ment loss is recognized in financial expenses.
Functional currency and foreign currency translation
The Group’s reporting currency and the functional currency of Infineon Technologies AG
is the euro. Infineon determines the functional currency for each subsidiary included in
the Consolidated Financial Statements.
Foreign currency transactions of subsidiaries are translated into the functional currency
of the relevant entity using the spot rate prevailing at the transaction date. Monetary
foreign currency assets and liabilities are translated at the spot rate prevailing at the
reporting date. Exchange rate gains and losses from the translation of foreign currency
transactions are recognized in the Consolidated Statement of Profit or Loss.
The assets and liabilities of subsidiaries with functional currencies other than the
euro are translated into euros for consolidation purposes using the spot rate at the
end of the reporting period. Income and expenses of these entities are translated
using the average spot rate of the reporting period. All currency translation differences
are recognized directly in equity and presented as “Other reserves”.
Recognition and measurement principles
Cash and cash equivalents
Cash and cash equivalents represent cash and all financial resources with a maturity
at the acquisition date of three months or less. Cash equivalents partly include
investments in money market funds. The valuation is recorded at amortized acquisi-
tion cost or at fair value through profit or loss.
Financial instruments
Financial instruments are initially recognized at their fair value. Transaction costs
directly attributable to the acquisition or issuance of financial instruments are only
included in the carrying amount if the financial instruments are not measured at
fair value through profit or loss.
Trade receivables are recognized based on the amount to which Infineon has an
unconditional right to receive. With the exception of matters that result in a partial
refund of the purchase price to the customer, this corresponds to the transaction
price determined in accordance with IFRS 15. The subsequent measurement of trade
receivables is carried out at amortized cost.
Standard purchases and sales of financial assets are recognized on the settlement date.
Financial assets are derecognized when the rights to receive payments from the
investments have expired or have been transferred, and Infineon has transferred all
risks and rewards associated with ownership. Financial liabilities are derecognized
when they are extinguished, that is, when the contractual obligation is discharged,
canceled, or expired.
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Notes
Financial assets
– Classification and measurement of financial assets
Upon initial recognition, financial assets are classified for subsequent measurement
either as at amortized cost, fair value through other comprehensive income or fair
value through profit or loss. This classification depends on the characteristics of the
contractual cash flows of the financial assets and Infineon’s business model for
managing its financial assets.
Infineon’s business model for managing financial asset portfolios reflects how the
Group controls its financial assets in order to generate cash flows. Depending on the
business model, cash flows arise from the receipt of contractual cash flows, the sale
of financial assets or both.
In order for a financial asset in the form of a debt instrument to be classified and
measured at amortized cost or at fair value through other comprehensive income,
cash flows may only arise from the repayment of principal and interest payments on
the outstanding principal amount. This assessment is referred to as a cash flow or
SPPI test (“solely payments of principal and interest test”) and is carried out at the
level of the individual financial instrument.
On this basis, Infineon’s financial asset measurement categories are as follows:
Financial assets measured at amortized cost include all assets whose contractual
provisions result in cash flows at fixed times that represent only interest and
repayments of the outstanding principal amount, provided that those assets are
held with the intention of collecting the contractual cash flows expected over their
respective duration. In subsequent periods, financial assets measured at amortized
cost are measured using the effective interest method. Interest income, currency
gains and losses, impairments, and gains or losses from the derecognition of such
financial assets are recognized through profit or loss. This measurement category
includes advance payments that Infineon makes according to contractual agreements
and receives back at a later date (so-called deposits).
As of the reporting date, Infineon did not hold any financial assets with the intention of
collecting contractual cash flows and selling them. Therefore, there was no allocation
of financial assets in the form of debt instruments to the category “fair value through
other comprehensive income”.
Financial assets in the form of debt instruments that are measured at fair value through
profit or loss include all financial assets of Infineon whose cash flows are not solely
payments of principal and interest.
At Infineon, financial assets in the form of equity instruments are generally measured
at fair value through profit or loss. For equity instruments that are neither held for
trading nor represent a contingent consideration in a business combination, Infineon
makes an irrevocable election at initial recognition as to whether changes in fair
value are recognized in other comprehensive income on subsequent measurement.
Net gains and losses, including interest and dividend income, from financial assets
that are measured at fair value through profit or loss (debt and equity instruments)
are recognized in the Consolidated Statement of Profit or Loss.
“Designated hedging instruments (cash flow hedges)” also belong to financial assets.
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Consolidated Financial Statements
Notes
– Impairment of financial assets
Infineon determines an allowance for expected credit losses for financial assets in
the form of debt instruments that are measured at amortized cost or at fair value
through other comprehensive income. The calculation of the expected future credit
losses is generally determined by multiplying the probability of default by the
carrying amount of the financial asset (exposure at default) and the expected loss
ratio (loss given default).
Infineon determines allowances for expected credit losses primarily for cash and cash
equivalents, financial investments, trade receivables, and contract assets. The expected
credit losses are adjusted at each reporting date to reflect changes in credit risk since
the instrument was first recognized.
For cash and cash equivalents and financial investments measured at amortized cost,
Infineon determines credit losses expected in the next twelve months (twelve-month
expected credit loss) in accordance with the general approach. Due to their short-term
maturity, this corresponds to the lifetime expected credit losses. Infineon rates the
credit risk for cash and cash equivalents and financial investments as low. Infineon
assumes that a financial asset has a low credit risk if it has an investment grade rating
or a corresponding internal investment grade rating. In order to assess whether
there has been a significant increase in credit risk since initial recognition, Infineon
considers appropriate and robust information that is relevant and available without
disproportionately high levels of effort. This includes both quantitative and qualitative
information and analyses, which are based on the Group’s historical experience and
a sound credit assessment as well as forward-looking information. Macroeconomic
information is taken into account in the internal rating model (information on Infineon’s
financial risk management is included in note 28, p. 157 ff.). Irrespective of the
above analysis, a significant increase in credit risk is assumed if a debtor is more than
30 days overdue with the settlement of a contractual payment.
For trade receivables and contract assets, Infineon recognizes lifetime expected
credit losses using a simplified approach. The estimate of expected credit losses on
trade receivables and contract assets is based primarily on the analysis of customer
financial data, ratings, credit default spreads, past payment behavior of customers
and forward-looking information.
In the case of objective indications that expected future cash flows are affected,
a financial asset is classified as credit-impaired and adjusted to its individual value.
As a rule, this is the case for financial assets (except in the case of trade receivables)
no later than 90 days after the due date. Trade receivables are not automatically
determined as credit-impaired in the event of a payment overdue by more than 90 days,
but instead, always on the basis of the individual assessment of credit management.
A default event occurs when Infineon concludes that the other party would most
likely not be able to meet the payment obligations, or not in full.
Financial assets are partly or completely written off, together with previously recognized
impairments, if there is no reasonable expectation of repayment. This is generally
the case when Infineon finds that the debtor does not have assets or revenue sources
that could generate sufficient cash flows to repay the amounts subject to derecognition.
Even when financial assets are written off, Infineon continues to conduct enforcement
measures to recover them. Amounts recovered are recognized in profit or loss.
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Notes
Financial liabilities
Infineon classifies financial liabilities into the following categories: “Financial
liabilities measured at fair value through profit and loss” and “Other financial
liabilities”. Furthermore, “Designated hedging instruments (cash flow hedges)”
belong to financial liabilities.
Liabilities measured at fair value through profit or loss by Infineon include derivatives
to hedge currency risks for which hedge accounting is not applied.
Upon initial recognition, other financial liabilities are measured at fair value after
the deduction of transaction costs. In subsequent periods, they are measured at
amortized cost using the effective interest method. Other financial liabilities at
Infineon include advance payments that Infineon receives from customers as part of
capacity reservation contracts and which are repaid to the customers at a later date
after the contractually agreed volumes have been accepted (deposits). The difference
between the nominal amount of a deposit and its fair value arising on initial recognition
of the financial liability does not normally represent a gain at the time of addition
(referred to as “day-one gain”), but an advance payment by the customer for a capacity
reservation granted and is recognized as a contract liability on initial recognition
and realized as revenue over the period of the capacity reservation (see “Revenue
recognition”, p. 108).
The liabilities are derecognized when the contractual obligations are discharged,
have been canceled or have expired.
Designated hedging instruments (cash flow hedges)
Certain derivative financial instruments are used to hedge foreign currency and
interest risks or risks of commodity price changes (such as gold prices) for firm
commitments, as well as for expected and highly probable future transactions, in order
to minimize the associated risk (cash flow hedges).
Derivative financial instruments are measured at their fair value and included in other
current or non-current assets or other current or non-current liabilities.
The effective portion of changes in the fair value of derivative financial instruments,
determined in accordance with IFRS 9, that are designated as cash flow hedges
and are part of hedging relationships that meet the criteria for hedge accounting is
recognized directly in equity. The gain or loss relating to the ineffective portion is
recognized in profit or loss. Amounts accumulated in equity are recycled in profit or
loss in the periods in which the underlying hedged item affects profit or loss, or, if the
expected transaction subsequently results in the recognition of a non-financial asset,
included in the acquisition cost upon initial recognition.
When a hedging instrument expires or is sold, or when a hedging relationship no
longer meets the criteria for hedge accounting, any cumulative gain or loss existing at
that time remains in equity until the underlying transaction actually occurs. When a
forecasted transaction is no longer expected to occur, the cumulative gain or loss that
was reported in equity is immediately transferred to profit or loss.
Inventories
Inventories are measured at the lower of historical acquisition or fully absorbed
production cost – calculated using the weighted-average method – and net realizable
value. Net realizable value corresponds to realizable sale proceeds under normal
business conditions, less estimated expected costs to complete and sell. Production
cost comprises costs of material, production wages and an appropriate portion of
attributable overheads, along with attributable depreciation and amortization on
property, plant and equipment and other intangible assets. Overhead mark-ups are
determined on the basis of normal capacity utilization levels.
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Write-downs to net realizable value are recorded on inventories using a consistent
approach throughout Infineon and are determined at product level for technically
obsolete and slow-moving inventories on the basis of the amount of revenue
expected to be generated by the relevant product.
Inventories include an asset resulting from sales with a right of return, representing
Infineon’s right to recover products from customers upon payment of the reimburse-
ment obligation (see “Revenue recognition”“, p. 108). The valuation is made by
reference to the previous book value of the products.
Contract assets
Contract assets are recognized if Infineon has fulfilled its performance obligations
arising from contracts with customers and an unconditional entitlement to customer
consideration does not yet exist.
At Infineon, contract assets result from the sale of customer-specific products
without an alternative use and from certain consignment agreements (see “Revenue
recognition”, p. 108).
Loss allowances for expected credit losses on contract assets are determined in
accordance with the measurement method for trade receivables (see “Financial
instruments”“, p. 100).
Property, plant and equipment
Property, plant and equipment are measured at amortized acquisition or
construction cost, with deductions to their value to take account of depreciation
and any impairments.
Depreciation on property, plant and equipment is recorded using the straight-line
method. Land, property rights and construction in progress are not depreciated on
a scheduled basis. Depreciation on property, plant and equipment is based on the
following useful lives, as applied consistently throughout Infineon:
Years
Buildings and building components
25
Technical equipment and machinery
3 – 10
Other plant and office equipment
1 – 10
Other intangible assets
Other intangible assets consist of capitalized development costs and purchased
intangible assets, for example licenses, technologies and customer relationships.
These assets have finite useful lives and are valued at their amortized acquisition or
production costs, with amortization recorded using the straight-line method over
their expected economic life.
Amortization of other intangible assets is based on the following useful lives:
Years
Capitalized development costs
3 – 10
Customer relationships
1 – 12
Technologies
1 – 12
Licenses and similar rights
3 – 5
Remaining other intangible assets
3 – 12
Infineon did not hold any other intangible assets with indefinite useful lives in either
the 2025 or the 2024 fiscal year.
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Recoverability of property, plant and equipment and
intangible assets (including goodwill)
Infineon reviews non-current assets, including property, plant and equipment,
goodwill and other intangible assets for possible impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be
recoverable. Regardless of whether an indication of impairment exists, goodwill and
other intangible assets, including capitalized development costs not yet subject to
amortization, undergo an annual impairment test (see also “Research and development
expenses”, p. 109). The impairment test for goodwill is carried out annually at the
operating segment level.
The recoverability of an asset is measured by comparing its carrying amount with
its recoverable amount. To the extent it is not possible to determine the recoverable
amount of an individual asset, the book value of the cash generating unit to which
the asset is allocated is compared to its recoverable amount.
A cash-generating unit (CGU) represents the smallest identifiable group of assets that
generates cash inflows from continuing activities and that are largely independent
of the cash inflows from other assets or group of assets.
Goodwill arising in connection with a business combination is allocated to the CGUs
or groups of CGUs that will benefit from the synergies generated by the business
combination and the going-concern element of the business operations acquired.
The recoverable amount of an asset is defined as the higher of its fair value less costs
to sell and its value in use. The value in use is calculated based on discounted future
cash flows. Considerable management judgment is necessary to estimate future cash
flows. To simplify matters, if the value in use is higher than the carrying amount,
there is generally no need to calculate the fair value less costs to sell.
If an asset or CGU is considered to be impaired, the impairment recognized is the
amount by which the carrying value exceeds the recoverable amount.
Goodwill is impaired when the carrying amount of the operating segment to which
the goodwill is allocated exceeds the recoverable amount of that unit.
If the carrying amount of the operating segment to which the goodwill is allocated
exceeds the recoverable amount of this CGU, the goodwill is impaired accordingly.
In the case of property, plant and equipment or other intangible assets, if the recover-
able amount of a CGU is less than its carrying value, the impairment loss is allocated
pro rata to the assets within the scope of IAS 36. An impairment loss recognized in
prior periods for property, plant and equipment or other intangible assets is reversed
insofar as, since the last impairment, a change in the underlying assumptions has
occurred, which leads to a lower impairment requirement. The maximum possible
reversal of an impairment loss is that which would lead to the carrying amount that
would have been determined (net of scheduled depreciation or amortization) if
no impairment loss had been recognized for that asset in previous years. Goodwill
impairments recognized may not be reversed in subsequent periods.
Leased assets
IFRS 16 defines a lease as a contract that conveys the right to use an identifiable asset
over a specified period of time in exchange for consideration.
At the beginning of a lease, Infineon capitalizes a right-of-use asset at amortized
acquisition cost and recognizes as a liability a corresponding lease liability, using the
present value of the outstanding lease payments. Right-of-use assets are amortized on
a straight-line basis over the expected useful life (see “Property, plant and equipment”,
p. 104), or over the duration of the contract if shorter. In subsequent valuations,
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Notes
lease liabilities are measured at the current value of the outstanding lease payments
using the effective interest method and are presented as lease liabilities (current and
non-current).
The costs associated with leasing agreements with a term of not more than twelve
months that do not contain an option to purchase, as well as leasing agreements in
which the value of the underlying asset in the leasing contract is low, are recorded in
profit or loss on a straight-line basis in the functional costs. As a general rule, leased
assets with an acquisition cost of up to €5,000 are defined as low-value assets.
Defined benefit pension plans
The net pension obligation recognized with respect to defined benefit pension plans
comprises the present value of the defined benefit obligation (DBO) at the end of the
reporting period less the fair value of the plan assets. The present value of the DBO
and the resulting pension expense are determined annually in accordance with IAS 19
“Employee Benefits” for each separate plan by independent, qualified actuaries
using the projected unit credit method. The calculation is subject to, among other
things, assumptions on increases in salaries, future developments in pensions as well
as the life expectancy of the beneficiaries. As of the balance sheet date, the obligations
are discounted using discount rates determined primarily on the basis of market
yields of high-grade, fixed-interest corporate bonds from issuers carrying a very high
credit rating.
All items of income and expense relating to defined benefit plans, with the exception
of the net interest result, are recognized on a net basis in the functional costs within
the operating result. The net interest result arising from the multiplication of the
net pension obligation (pension obligation less plan assets) by the discount rate is
presented as a financial expense. Actuarial gains and losses arising from changes to
actuarial assumptions and estimates as well as the difference between the normalized
and actual return on plan assets are recognized directly in equity outside profit for
the period and recorded in the Consolidated Statement of Comprehensive Income
in the periods in which they arise. Past service costs are recognized immediately in
profit or loss.
Contract liabilities
Contract liabilities are recognized if Infineon has not yet fulfilled its performance
obligations from contracts with customers and has already received consideration
from the customer.
Other provisions
Other provisions are recognized for present legal and/or constructive obligations
arising from past events that are likely to result in a future net outflow of economic
resources, the amount of which can be reliably estimated.
Provisions for restructuring measures are recognized in accordance with the general
recognition criteria if a detailed formal restructuring plan has been prepared and has
been made known to the parties concerned as of the balance sheet date.
With regard to legal proceedings and litigation, Infineon regularly assesses the
probability of an unfavorable outcome. Infineon records provisions and liabilities,
including provisions for significant legal costs, for those obligations and risks relating
to legal disputes that it assesses at the relevant reporting date are likely to occur.
That is where, from Infineon’s perspective as of the date of assessment, there is com-
pelling evidence that indicates an obligation or risk, and the obligation or risk can be
quantified with reasonable accuracy at the time of assessment. As soon as additional
information is available, the affected estimates are reviewed and provisions for these
proceedings are revised.
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Notes
Other provisions are measured at their expected settlement amount. The amount
recognized for a provision is the best estimate of the expenditure required to settle
the present obligation. Estimates of outcomes and financial effects are made by
management based on experience, assisted where appropriate by independent expert
assessments. If the circumstances to be assessed encompass a large number of
possible outcomes, the obligation is estimated by weighting all relevant outcomes
by their associated probabilities (expected value method).
Where cash flows are expected to arise after the next twelve months, the expected
settlement amount corresponds to the present value of the expected cash outflows.
Discounting is only carried out if the interest effect is significant.
If the obligation decreases because of a change in the estimate, the provision is
adjusted accordingly and the resulting income recognized in the same functional
cost where the expense was originally accounted for when the provision was created.
Contingent liabilities
Contingent liabilities are either possible obligations whose actual existence depends
on the occurrence of one or more uncertain future events not within Infineon’s
control, or they are present obligations that will probably not result in the outflow
of resources or whose outflow of resources cannot be quantified reliably. Contingent
liabilities are not recognized in the Consolidated Statement of Financial Position;
instead, they are disclosed in the notes to the Consolidated Financial Statements
(see notes 23, p. 145, and 24, p. 145 f.).
Hybrid bonds
The accounting treatment for a hybrid bond depends on its specific terms. A hybrid
bond is recognized and measured as equity if, inter alia , it has no final maturity date,
the investors have no termination rights and distributions are at the discretion of
Infineon. In this case, discounts, transaction costs, tax effects and the compensation
of the hybrid investors are deducted directly from equity.
Treasury shares
Treasury shares reduce equity at cost, i.e. including directly attributable incidental
acquisition costs. If treasury shares are acquired via an independent financial institution
as part of what is referred to as a passive buyback program, a liability for the obligation
to buy back the shares is recognized upon conclusion of the irrevocable agreement
on the acquisition of the treasury shares and a corresponding reduction in equity in
the amount of the buyback value expected at that time. The difference between the
expected repurchase value and the total purchase price of the shares is recognized in
profit or loss as other financial income or expense.
The amount per share recognized as the equity deduction item “Treasury shares” is
to be reclassified from the item “Treasury shares” to the “Capital reserve” within equity
when the treasury shares are subsequently used as part of the share-based payment.
A moving average is used to determine the reclassification amount within equity.
Revenue
Infineon generates revenue mainly from the sale of semiconductor products, related
system solutions and relevant software, mainly to direct customers and distributors.
Infineon’s customer contracts usually contain one performance obligation.
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Consolidated Financial Statements
Notes
Revenue recognition
Revenue that is not recognized over time is recognized at a point in time and
generally upon delivery. This is the standard case at Infineon. If software is an integral
part of the product, revenue is also recognized at a point in time upon delivery of
the product to the customer. In the case of deliveries to consignment warehouses,
revenue recognition depends on the respective individual contractual arrangement.
Revenue is recognized at the time of delivery to the consignment warehouse in cases
where the customer has already contractually obtained control over the products
at the time of delivery to the consignment warehouse, and otherwise when the
products are removed from the consignment warehouse by the customer. For sales
of customer-specific products with no alternative use for Infineon, for which Infineon
has a legal right to payment for services rendered prior to delivery, revenue is
recognized over the production period of the customer-specific products. Revenue
from supplementary services such as capacity reservation, development services,
software support and maintenance is recognized over the period in which the service
is provided.
Transaction price
The amount of revenue corresponds to the expected transaction price to be settled
by the customer.
Variable consideration
The revenue recognition of contractually agreed variable consideration ensures
that it is highly probable that there will not be a significant subsequent reversal of
revenue. If Infineon expects that the revenue will have to be partially refunded due to
variable components, Infineon recognizes a refund obligation that reduces revenue
and is reported under other current liabilities.
In addition to rebates and discounts, variable consideration at Infineon relates in
particular to products sold to distributors. Distributors can, in accordance with estab-
lished business practices in the semiconductor industry, request price adjustments
under certain circumstances. This allows distributors to receive a credit (debit) note
for unsold products held in inventory. In addition, in certain cases and for certain
products, distributors may request what is referred to as a ship and debit credit note
and, subject to certain conditions, may return a limited amount of inventory or request
scrap allowances.
The estimate of the amount of the expected refund obligations is made on the basis of
constantly updated empirical values, taking into account currently observed trends.
Expected refunds based on customary warranty obligations, for example due to quality
defects, are recognized as an expense through the creation of warranty provisions.
Significant financing component
If Infineon receives payments for product deliveries less than one year in advance,
Infineon makes use of the practical expedient not to adjust the transaction price by
a significant financing component. If, in exceptional cases, there is more than one
year between receipt of the advance payment and delivery, the transaction price
will be adjusted by the time value of money to the extent that a significant financing
component exists.
Costs of contract initiation and fulfillment
The additional costs to obtain a contract are immediately recognized as an expense
as soon as they are incurred, provided that the period over which they would otherwise
be reversed does not exceed one year. Costs to fulfill a contract are capitalized at the
earliest when an expected and specifically identifiable contract exists.
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Cost of goods sold
Cost of goods sold includes the manufacturing costs of products sold during the
reporting period. In addition, cost of goods sold contains underutilization costs,
inventory risks, the cost of warranty cases, as well as the amortization of capitalized
development costs. Recognized currency translation effects, as well as changes
in the fair value of undesignated derivative financial instruments connected to the
operating business, are recognized in cost of goods sold.
Research and development expenses
Research costs are expensed as incurred. Development costs are only capitalized if
they relate to new or significantly improved products or production processes, the
development costs can be reliably estimated, the product or process is technically
and commercially feasible, a future economic benefit is probable and Infineon must
intend, and have the ability, to complete the development and to use or sell the asset.
The costs capitalized include the cost of materials, direct labor and directly attributable
general overhead expenses that serve to prepare the asset for use. Such capitalized
costs are presented as internally generated intangible assets within “Other intangible
assets” (see note 13, p. 124 ff.). Development costs, that do not fulfill the criteria for
capitalization are expensed as incurred. Capitalized development costs are stated at
cost less accumulated amortization and impairment charges.
Grants
Grants are recognized when it is reasonably assured that Infineon will comply with
the conditions attached to the grant, and reasonably assured that the grant will be
received. Investment-related grants are deducted from the purchase and production
cost of the related asset and thereby reduce the depreciation and amortization
expense in future periods.
Grants that are related to expenses are presented as a reduction of the related expense
in the Consolidated Statement of Profit or Loss (see note 4, p. 115).
Share-based payment
Infineon has developed Long-Term Incentive (“LTI”) plans in the form of the Perfor-
mance Share Plan and the Restricted Stock Unit Plan. In addition, since the 2025 fiscal
year, part of the annual short-term variable remuneration (Short-Term Incentive – STI)
has been paid in shares under the Bonus-to-Share Plan (see note 22, p. 142 ff.).
In accordance with IFRS 2 “Share-based Payment”, these plans are classified as
equity-settled share-based payment transactions and are accounted for accordingly.
Under the Performance Share Plan and the Restricted Stock Unit Plan, the fair value
of the equity instruments granted is determined at the grant date by an external
expert using a recognized mathematical method (the Monte Carlo simulation
model). The valuation of the Bonus-to-Share Plan is based on the actual target
achievement of the STI performance criteria.
The expense for the share-based payment is distributed on a straight-line basis over
the vesting period. The expenses are recognized in the functional costs. The offsetting
entry is made in the capital reserve.
Current and deferred taxes
The current tax expense is calculated in accordance with taxation provisions in force
at the end of the reporting period.
Deferred taxes are calculated on temporary differences between the tax base and
the book value of assets and liabilities and on tax losses available for carry-forward
and tax allowances. By contrast, generally no deferred tax is recognized on initial
recognition of goodwill arising in connection with a business combination. Similarly,
deferred taxes are not recognized upon the initial recognition of an asset or liability in
connection with a transaction that is not a business combination, at the time of the
transaction affects neither the pre-tax income according to IFRS Accounting Standards
nor taxable profit and does not result in taxable and deductible temporary differences
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Notes
in the same amount at the time it arises. Deferred tax assets and liabilities are
measured using applicable tax rates and laws that have been enacted or substantively
enacted by the end of the reporting period and are to be applied when the related
deferred tax asset is realized, or the deferred tax liability is settled.In determining
deferred taxes, Infineon has taken account of the reduction in the tax rate as part of
the fiscal investment program for the relevant years.
Deferred tax assets with respect to deductible temporary differences, tax loss
carry-forwards and tax allowances that exceed deferred tax liabilities in respect of
taxable temporary differences, are only recognized to the extent that it is probable
that the relevant Group entity can generate sufficient taxable profit to realize the
corresponding benefit. Infineon reviews deferred tax assets for impairment at every
reporting date. The assessment requires management to make assumptions about
future taxable profits as well as other positive and negative influencing factors. This
assessment also takes into account insights from the Group’s five-year plan as
approved in the fiscal year just ended.
Deferred tax assets and liabilities are netted to the extent they relate to the same tax
authority and to the same taxpayer or a group of different taxpayers who are jointly
assessed for income tax purposes.
Taxes are recognized in the Consolidated Statement of Profit or Loss, with the
exception of taxes relating to items recognized directly in equity or in other compre-
hensive income.
Tax liabilities are recognized as short-term as they are due immediately, and Infineon
generally does not have the option of deferring their due date.
For uncertain tax positions, a current tax liability is recorded; in the case of a tax
loss carried forward or a tax allowance, the respective deferred tax asset is reduced
accordingly. Estimates and assumptions must be made for the recognition and
valuation, for example, whether an assessment is made separately or together with
other uncertainties, whether a probable or expected value is used for the uncertainty,
and whether changes have occurred compared to the previous period. The detection
risk for the recognition of uncertain tax positions is not relevant. Recognition assumes
that the tax authorities investigate the matters in question and that they have all
relevant information.
Estimates and assumptions
The preparation of financial statements in accordance with IFRS Accounting Standards
requires management to make estimates and assumptions that have an impact on
the amounts presented and the associated disclosures.
Assumptions and estimates are made to the best of management’s knowledge
based on current events and actions. Actual results may deviate from these estimates.
This is especially true against the backdrop of the geopolitical risks that continue to
exist, particularly due to the ongoing war in Ukraine, the conflict over Taiwan, and the
military conflicts in the Middle East. Furthermore, customs disputes, export controls
and bans on high-tech and critical basic materials as well as trade restrictions, for
example between the USA, the EU and China, could have a negative impact on global
trade and therefore on global economic growth. This could also lead to less growth
or a decline in foreign demand in China and therefore Chinese gross domestic product,
in a market that is important for Infineon. Furthermore, these tariff disputes could
also lead to de facto exclusions in key markets if Infineon has no local value creation
there. Developments in the wake of the geopolitical risks are dynamic, so it cannot
be ruled out that the actual results deviate significantly from the estimates and
assumptions made in the preparation of these Consolidated Financial Statements, or
that the estimates and assumptions made will have to be adjusted in future periods.
This could have a significant impact on Infineon’s financial condition, liquidity and
results of operations.
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Notes
Climate change can give rise to uncertainties and risks for Infineon’s financial condition,
liquidity and results of operations. Changes in the climate such as increased frequency
and intensity of extreme weather events (storms, fires and floods) as well as long-term
trends such as a rise in temperature can affect the usability of Infineon's assets.
Transitory changes related to decarbonization, including political, legal, technological
and market changes, may affect the useful life and value of Infineon's assets. There
is uncertainty about the extent to which regulatory efforts to protect the climate and
resources will increase costs. Infineon's climate protection measures focus on CO₂
emissions and Infineon plans to become carbon-neutral by 2030. Costs for this and
other climate change mitigation measures have been taken into account in corporate
planning and thus included in impairment considerations. Climate risks and opportuni-
ties are analyzed, reported and evaluated for their potential financial and accounting
impact as part of the quarterly risk management process. They are thus regularly
included in the review of estimates and assumptions for accounting purposes. In
addition, sensitivity analyses of the valuation results are carried out for valuations
based on longer-term planning assumptions for business development, which
adequately reflect the potential impact of climate change on the valuation results.
Infineon has not currently identified any material risks in relation to climate change
or the scarcity of resources and does not currently expect such risks to have a material
impact on its business model or on the presentation of its financial condition, liquidity
and results of operations.
Accounting areas particularly affected by estimation uncertainties and assumptions are:
– the valuation of inventory (see “Inventories”, p. 103 f., and note 11, p. 123),
– the recoverability of non-financial assets, in particular property, plant and equipment
(see note 13, p. 124 ff.) and goodwill (see note 14, p. 126 ff.),
– the recognition and measurement at fair value of assets acquired as part of the the
acquisition of the Automotive Ethernet business (see note 3, p. 112 f.)
– the recognition and valuation of provisions (see “Other provisions”, p. 106 f.,
notes 17, p. 132, and 24, p. 145 f.) and
– the revenue where the transaction price contains a variable element (see “Revenue
recognition”, p. 108).
All assumptions and estimates are based on the circumstances and assessments as
of the balance sheet date, taking into account the knowledge gained up to the
approval by the Management Board of the Consolidated Financial Statements on
24 November 2025.
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Notes
3 Acquisitions
Acquisition of Marvell’s Automotive Ethernet business
On 14 August 2025, Infineon completed the acquisition of the Automotive Ethernet
business from Marvell Technology, Inc., USA, (“Marvell”). Ethernet is a key enabling
technology for low-latency, high-bandwidth communication, which is crucial for
software-defined vehicles. In addition, the acquisition creates new opportunities in
the field of physical AI, such as humanoid robots. With the acquisition, Infineon
strengthens its system expertise for software-defined vehicles, complementing and
expanding, among other things, its own market-leading microcontroller business.
The purchase price (consideration transferred) of €2,201 million at the acquisition date
was made up as follows:
€ in millions
Cash
2,120
Replacement of share-based payment awards (see note 22, p. 142 ff.)
33
Valuation effects from hedging transactions (see note 27, p. 149 ff.)
48
Consideration transferred (purchase price)
2,201
In accordance with the terms and conditions of the purchase agreement Infineon
replaced share-based payment components held by transferring employees with
Infineon’s Restricted Stock Units totalling €47 million. After deduction of the pro
rata service periods completed by the employees before the acquisition date, which
was considered as a component of the consideration transferred (purchase price),
€14 million will be recognized as a post-closing expense. See note 22, p. 142 ff., for further
details regarding the replacement of the existing share-based payment.
The acquired net assets of the Automotive Ethernet business before the purchase price
allocation amounted to €28 million. The acquired assets mainly relate to inventories
and property, plant and equipment. The acquired liabilities primarily relate to liabilities
to employees. The excess of the purchase price over the net assets acquired was
€2,173 million.
The purchase price allocation, generally based on the fair values of the assets acquired
and liabilities assumed, resulted in particular in the recognition of intangible assets
such as technologies and customer relationships as well as goodwill. The main
assumptions made in the context of the purchase price allocation concerned revenue
and margin trends in the business plan of the operations acquired, the expected
synergies and the cost of capital.
The following table shows the assets acquired and liabilities assumed, taking into
account the purchase price allocation at the acquisition date:
€ in millions
Inventories
61
Property, plant and equipment
6
Other intangible assets
773
Total assets
840
Current provisions
3
Total liabilities
3
Net assets acquired
837
Goodwill
1,364
Consideration transferred (purchase price)
2,201
Paid in cash as of 30 September 2025
2,180
The goodwill of €1,364 million arising from the acquisition, originally denominated in
U.S. dollars, is primarily attributable to synergies, expected cost benefits, income from
the future technology and customer portfolios, and the knowhow of the workforce.
Of the total goodwill, €1,363 million is deductible for tax purposes.
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Notes
Due to the ongoing operational integration of the Automotive Ethernet business
and any possible resulting findings about circumstances that already existed at the
acquisition date, especially with regard to intangible assets, the amounts initially
recognized may be subject to adjustments and should be considered to be provisional.
The costs associated with effecting the business combination, comprising mainly
legal expenses, bank commissions and other consulting expenses, totalled €6 million
and were recognized in other operating expenses.
Revenue and profit (loss) after tax of the Automotive Ethernet business, included
in the Consolidated Statement of Profit or Loss for the reporting period since the
acquisition date, were as follows:
€ in millions
Revenue
10
Profit (loss) after tax
(15)
The profit (loss) after tax of the Automotive Ethernet business was significantly
impacted by integration effects, acquisition-related depreciation and amortization
(in particular of other intangible assets identified as part of the purchase price
allocation) and other expenses.
If the Automotive Ethernet business had already been acquired and consolidated as
of 1 October 2024, Infineon would have recorded revenue of €14,799 million in the
Consolidated Statement of Profit or Loss for the 2025 fiscal year. A reliable determi-
nation of the profit (loss) for the period since 1 October 2024 for the Automotive
Ethernet business is impracticable due to the transaction structure (acquisition of
individual assets and liabilities in the context of an asset deal) and unavailable data.
The Automotive Ethernet business was fully integrated into the existing Automotive
segment.
4 Notes to the Consolidated Statement
of Profit or Loss
Revenue
Breakdowns of revenue by segments, product groups and geographic areas are
disclosed in note 29. p. 163 ff.
Revenue of €65 million in the 2025 fiscal year (previous year: €68 million) was reported
under current contract liabilities in the previous year’s balance sheet.
The aggregate amount of the transaction prices of the unsatisfied and partially
unsatisfied performance obligations, arising from contracts with customers within
the meaning of IFRS 15 with original expected durations of more than one year, was
as follows as of 30 September 2025 and 30 September 2024:
Revenue expected (€ in millions)
Total
Less than
1 year
1 year
and after
As of 30 September 2025
1,606
656
950
As of 30 September 2024
2,893
1,667
1,226
Infineon refrains from disclosing the remaining performance obligations arising
from contracts with customers within the meaning of IFRS 15 with original expected
durations of one year or less.
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Notes
Cost of materials/Personnel expenses
The Consolidated Statement of Profit or Loss included cost of materials of €6,287 million
in the 2025 fiscal year (previous year: €6,325 million).
The following personnel expenses were also included in the Consolidated Statement
of Profit or Loss:
Change
€ in millions
2025
2024
absolute
in %
Wages and salaries
3,867
3,960
(93)
(2)
Social insurance levies and employee benefits
580
561
19
3
Expenses for pensions
112
91
21
23
Total
4,559
4,612
(53)
(1)
The average number of employees by geographic region was as follows for the 2025
and 2024 fiscal years:
Change
2025
2024
absolute
in %
Europe
24,833
24,815
18
0
therein: Germany
15,106
15,232
(126)
(1)
Asia-Pacific (excluding Japan, Greater China)
24,484
25,402
(918)
(4)
Greater China 1
3,040
3,050
(10)
–
therein: Mainland China, Hong Kong
2,577
2,576
1
0
Japan
685
690
(5)
(1)
Americas
4,171
5,152
(981)
(19)
therein: USA
3,012
3,706
(694)
(19)
Total
57,213
59,109
(1,896)
(3)
1 Greater China comprises Mainland China, Hong Kong and Taiwan.
Other operating expenses
Other operating expenses comprised the following in the 2025 and 2024 fiscal years:
Change
€ in millions
2025
2024
absolute
in %
Restructuring costs and other related closure costs
139
232
(93)
(40)
Impairment of other intangible assets,
property, plant and equipment, other assets
and assets held for sale during the year
(see note 7, p. 120 f., and note 13, p. 124 ff.)
272
121
151
+++
Expenses in connection with rental income
18
23
(5)
(22)
Other
108
22
86
+++
Total
537
398
139
35
On 7 May 2024, Infineon announced its Group-wide structural improvement program
“Step Up” to strengthen its competitiveness. In the 2025 fiscal year, Infineon recognized
restructuring costs and other related closure costs of €139 million (previous year:
€232 million). Most of these costs are directly related to measures within the “Step Up”
framework.
Impairment losses on other intangible assets, property, plant and equipment, other
assets and assets held for sale during the fiscal year totalled €272 million in the 2025
fiscal year (previous year: €121 million). Of this amount, €98 million was attributable
to plant and machinery in connection with the “Step Up” structural improvement
program that can only be used to a limited extent or can no longer be used. A further
€149 million results from the disposal of the production facility in Austin (Texas, USA)
to SkyWater Technology, Inc. (see note 7, p. 120).
The impairments are mainly attributable to the Group functions, see note 29. p. 163 ff.
114
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Notes
Grants
Infineon has received grants from various governmental institutions under
government business development programs, including grants for the construction
of manufacturing facilities as well as for research and development activities and
employee development. Grants included directly in profit or loss in the Consolidated
Financial Statements during the 2025 and 2024 fiscal years were as follows:
Change
€ in millions
2025
2024
absolute
in %
Included in the Consolidated Statement of Profit or
Loss in:
Cost of goods sold1
120
149
(29)
(19)
Research and development expenses1
179
215
(36)
(17)
Selling, general and administrative expenses
8
3
5
+++
Total
307
367
(60)
(16)
1 Figures for the previous year period have been adjusted (for details see note 1,
S. 98 f., to the Consolidated Financial Statements).
Of the grants recognized in profit or loss in the 2025 fiscal year, €8 million relates to
expenses incurred in the previous year of €43 million.
In the 2025 fiscal year, investment grants of €300 million (previous year: €74 million)
were deducted from acquisition or construction costs for property, plant and
equipment and other intangible assets. In the 2025 fiscal year, Infineon received
investment grants of €239 million (previous year: €15 million).
For compliance with the conditions attached to the grants received and potential
repayment requirements in case of nonfulfillment, see note 23 p. 145.
Financial income and expenses
Financial income comprised the following in the 2025 and 2024 fiscal years:
Change
€ in millions
2025
2024
absolute
in %
Interest income
60
83
(23)
(28)
Other financial income
21
36
(15)
(42)
Total
81
119
(38)
(32)
Financial expenses comprised the following in the 2025 and 2024 fiscal years:
Change
€ in millions
2025
2024
absolute
in %
Interest expenses
(221)
(157)
(64)
41
Other financial expenses
(10)
(5)
(5)
–––
Total
(231)
(162)
(69)
43
Further information on Infineon’s financial income and expenses is contained in
note 27. p. 149 ff.
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Notes
5 Investments accounted for using
the equity method
Investments accounted for using the equity method comprise shares in joint ventures
and in associated companies.
Summarized financial information for joint ventures
As of 30 September 2025, the carrying amount of joint ventures accounted for using
the equity method was €81 million (30. September 2024: €77 million).
For the 2025 and 2024 fiscal years, Infineon’s proportion of selected items from the
statement of comprehensive income of the joint ventures accounted for using the
equity method was aggregated as follows:
Change
€ in millions
2025
2024
absolute
in %
Profit (loss) for the period
9
9
–
–
Other comprehensive income (loss), net of tax
–
(1)
1
+++
Total comprehensive income (loss), net of tax
9
8
1
13
The pro rata result of the joint ventures accounted for using the equity method is not
part of the Segment Result (see note 29, p. 166).
Summarized financial information for associated companies
On 2 April 2025, Infineon’s 40 percent share in SkyHigh Memory Limited (Hong Kong)
with a carrying amount of €22 million was sold. As of 30 September 2025, the carrying
amount of the associated companies accounted for using the equity method was
€19 million (30 September 2024: €40 million).
For the 2025 and 2024 fiscal years, Infineon’s proportion of selected items from the
statement of comprehensive income of the associated companies accounted for
using the equity method was aggregated as follows:
Change
€ in millions
2025
2024
absolute
in %
Profit (loss) for the period
1
2
(1)
(50)
Other comprehensive income (loss), net of tax
–
–
–
–
Total comprehensive income (loss), net of tax
1
2
(1)
(50)
The pro rata result of the associated companies accounted for using the equity method
is not part of the Segment Result (see note 29, p. 166).
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6 Income tax
Income tax from continuing operations for the fiscal years ending 30 September 2025
and 2024 amounted to:
Change
€ in millions
2025
2024
absolute
in %
Current tax income (expense)
(445)
(438)
(7)
2
Deferred tax income (expense)
75
60
15
25
Income tax
(370)
(378)
8
(2)
For the 2025 fiscal year, the German combined statutory tax rate for Infineon Tech-
nologies AG was 28 percent, as in the previous year. This was based on a corporate
income tax rate of 15 percent plus a solidarity surcharge of 5.5 percent (corporate
income tax rate including solidarity surcharge 15.8 percent) and a trade tax rate of
around 12 percent.
Taxable income earned by foreign subsidiaries is determined on the basis of the
country-specific tax legislation and is taxed based on the applicable country-specific
tax rates.
The reconciliation of income taxes from continuing operations for the fiscal years
ended 30 September 2025 and 30 September 2024, is based on the German combined
statutory tax rate of 28 percent and is as follows:
Change
€ in millions
2025
2024
absolute
in %
Expected income tax expense
(385)
(604)
219
(36)
Tax rate differential
49
103
(54)
(52)
Effects due to changes in tax rates
3
(11)
14
+++
Effects from the difference between
local and functional currency
(19)
25
(44)
–––
Previous year taxes
(8)
56
(64)
–––
therein: current tax income
2
117
(115)
(98)
Non-deductible expenses
(52)
(41)
(11)
27
Tax-exempt income
55
82
(27)
(33)
Change in permanent balance sheet effects
(40)
12
(52)
–––
Change in valuation allowance
on deferred tax assets
(31)
(90)
59
(66)
Change in available tax credits
49
101
(52)
(51)
Other
9
(11)
20
+++
Actual income taxes
(370)
(378)
8
(2)
The item “Change in valuation allowances on deferred tax assets” consists of the
following:
In the 2025 fiscal year, the impairment or non-recognition of deferred tax assets for
tax loss carry-forwards of €1 million (2024: €1 million), on tax credits of €36 million
(2024: €87 million) and on temporary differences of €0 million (2024: €2 million) had
an impact on profit or loss. A write-up of deferred tax assets on tax loss carry-forwards
of €2 million (2024: €0 million) was recorded. The write-up of deferred tax assets for
temporary differences amounted to €4 million in the 2025 fiscal year (2024: €0 million).
The utilization of tax loss carry-forwards, tax credits and temporary differences
for which no deferred tax assets were previously recognized resulted in current tax
income of €10 million in the 2025 fiscal year (2024: €8 million).
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The item “Tax rate differential” contains the global minimum tax for Pillar 2 purposes
in the amount of €10 million (2024: €0 million).
Deferred tax assets and liabilities as of 30 September 2025 and 30 September 2024
comprised the following:
€ in millions
30 September 2025
Change 2025
30 September 2024
Change 2024
Deferred
tax assets
Deferred
tax liabilities
Total
Therein through
profit or loss
Deferred
tax assets
Deferred
tax liabilities
Total
Therein through
profit or loss
Intangible assets
15
(347)
132
133
19
(483)
24
34
Property, plant and equipment
189
(218)
2
1
184
(215)
10
10
Inventories
40
(46)
(15)
(15)
47
(38)
2
(5)
Provisions, pensions and similar commitments
274
(47)
(24)
–
289
(38)
60
56
Other
56
(25)
(26)
(25)
82
(25)
54
56
Total deferred taxes on temporary differences
574
(683)
69
94
621
(799)
150
151
Tax loss carry-forwards
76
–
(4)
(2)
80
–
(76)
(65)
Interest carry-forwards
8
–
(6)
(6)
14
–
14
14
Unused tax credits and excess foreign tax credits
142
–
(29)
(29)
171
–
(15)
(15)
Total deferred taxes
800
(683)
30
57
886
(799)
73
85
Netting
(550)
550
–
–
(622)
622
–
–
Total
250
(133)
30
57
264
(177)
73
85
Infineon assessed the need for a valuation allowance on deferred tax assets. Based
on the results of this assessment and considering all positive and negative factors
and information relating to the foreseeable future based on business plans, Infineon
recognized deferred tax assets, after netting, of €250 million as of 30 September 2025
(30 September 2024: €264 million).
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Consolidated Financial Statements
Notes
Tax loss carry-forwards, interest carry-forwards and tax credits amount to the following:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Trade tax loss carry-forwards – Germany
–
170
(170)
–––
Corporate tax loss carry-forwards and
local tax loss carry-forwards (particularly
U.S. state tax loss carry-forwards) – foreign
668
564
104
18
Interest carry-forwards
137
125
12
10
Tax credits 1
676
719
(43)
(6)
1 The disclosures as of 30 September 2025 include Malaysian tax benefits of €2,146 million (30 September 2024: €2,204 million)
with a tax value (tax effected) of €491 million (30 September 2024: €529 million).
No deferred tax assets were recognized for the following items (gross amounts):
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Corporate tax loss carry-forwards and
local tax loss carry-forwards (particularly
U.S. state tax loss carry-forwards) – foreign
326
315
11
3
Thereof expire within the next five years
26
35
(9)
(26)
Interest carry-forwards
106
71
35
49
Thereof expire within the next five years
–
–
–
–
Tax credits 1
527
548
(21)
(4)
Thereof expire within the next five years
11
9
2
22
Deductible temporary differences
29
53
(24)
(45)
1 The figures as of 30 September 2025 mainly include Malaysian tax benefits of €1,569 million (30 September 2024: €1,581 million)
with a tax value (tax effected) of €360 million (30 September 2024: €379 million).
The change in the net amount of deferred tax assets and liabilities is as follows:
€ in millions
2025
2024
Deferred taxes, net as of 1 October
87
14
Deferred tax income (expense), recognized through profit or loss:
From continuing operations
75
60
From discontinued operations
(18)
25
Change of deferred taxes, recognized directly in equity:
Deferred taxes arising from business acquisitions
–
(23)
Deferred taxes from deconsolidations
(3)
(4)
Deferred taxes recognized directly in equity
2
2
Deferred taxes recognized in other comprehensive income
(18)
9
Currency effects
(8)
4
Deferred taxes, net as of 30 September
117
87
In connection with investments in subsidiaries, there were temporary taxable
differences of €396 million as of 30 September 2025 (2024: €309 million) for which
no deferred taxes have been recognized because the timing of the reversal can be
controlled, and it is not probable that the temporary differences will reverse in the
foreseeable future.
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Notes
Including the amounts recognized directly in equity and in other comprehensive
income and the expense/income from continuing and discontinued operations,
income tax was as follows:
Change
€ in millions
2025
2024
absolute
in %
Income taxes from continuing operations,
recognized in profit or loss
(370)
(378)
8
(2)
Income taxes from discontinued operations,
recognized in profit or loss
(11)
75
(86)
–––
Income taxes recognized directly in equity
9
12
(3)
(25)
Income taxes recognized in
other comprehensive income
(15)
10
(25)
–––
Income taxes
(387)
(281)
(106)
38
Income taxes recognized directly in equity in the 2025 fiscal year related to the
compensation for hybrid capital investors. In the previous fiscal year income taxes
also related to share-based payments.
Income taxes recognized in other comprehensive income in the 2025 fiscal year
comprise mainly taxes on actuarial gains and losses arising from pension commitments
(2025: €18 million expense, 2024: €10 million income).
Infineon falls within the scope of the second pillar of the OECD (Organisation for
Economic Co-operation and Development) rules to ensure a global minimum tax rate
of 15 percent (“Pillar 2”). Accordingly, a supplementary tax is payable to the extent
that the Pillar 2-specific tax rate per jurisdiction falls below the minimum tax rate
of 15 percent. The ultimate parent entity is Infineon AG, which is based in Germany.
The regulations have been implemented legislatively in the countries relevant to
Infineon in such a way that Infineon falls within the scope of minimum taxation from
the 2025 fiscal year onwards. Accordingly, there was a tax expense of €10 million
under this law in the reporting year. Furthermore, Infineon applies the exemption in
IAS 12.4A, according to which no deferred taxes are to be recognized in connection
with the global minimum taxation.
7 Disposals and discontinued operations
Sale of the 200-millimeter fab in Austin (Texas, USA)
On 30 June 2025, the 200-millimeter fab in Austin (USA) was sold to SkyWater
Technology, Inc. (“SkyWater”). In total, assets with a carrying amount of €188 million
and liabilities with a carrying amount of €50 million were sold.
In consideration of the sale, a supply contract was concluded with SkyWater for a
period of four years. The disposal contract and the supply contract are regarded as
“related contracts” for accounting purposes. Taking into account the terms of the
supply contract, deferred income was recognized in other liabilities upon completion
of the sale, which will be realized in cost of goods sold over the term of the supply
contract.
As the consideration received from the sale was below the carrying amount, taking
into account the deferred income, an impairment of €149 million was recognized in
other operating expenses.
Upcoming sale of the backend manufacturing site
in Bangkok/Nonthaburi (Thailand)
The sale of the backend manufacturing site in Bangkok/Nonthaburi (Thailand) to
Malaysian Pacific Industries Berhad (MPI) was agreed in a contract dated 18 Septem-
ber 2025. At the same time and in connection with the sale, Infineon concluded a
long-term supply agreement. The two contracts are regarded as “related contracts”
for accounting purposes. The closing of the transaction is expected towards the
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Notes
beginning of the 2026 calendar year, when all pending closing conditions will have
been fulfilled. As of 30 September 2025, assets with a carrying amount of €45 million
were reclassified to assets held for sale and liabilities with a carrying amount of
€16 million were reclassified to liabilities held for sale.
Qimonda – discontinued operations
On 23 January 2009, Qimonda AG (hereafter also referred to as “Qimonda”), a
majority-owned company of Infineon, filed an application at the Munich local court
to commence insolvency proceedings. The insolvency of Qimonda gave rise to
various disputes between the insolvency administrator and Infineon, which were
ended with the settlement determined by the court on 23 August 2024
After the court-approved settlement with the insolvency administrator, a subsequent
profit from discontinued operations, net of income tax, resulted in the amount of
€10 million (2024: minus €479 million, therein expenses of €554 million after the full
utilization of recognized provisions for the settlement of the legal dispute with the
insolvency administrator and income from income taxes of €75 million).
8 Earnings per share
Basic earnings per share are calculated by dividing profit (loss) for the period by
the weighted-average number of shares outstanding during the reporting period.
The calculation of the diluted earnings per share is based on the assumption that
all potentially dilutive instruments are converted into ordinary shares, resulting in
a corresponding increase in the number of shares.
The hybrid bond issued in the 2020 fiscal year is classified as equity (see note 20, p. 141).
The related hybrid investors’ compensation (after tax) represents payments for a
component of equity that reduces the earnings available to shareholders for distribution
and was therefore taken into account in determining earnings per share (basic and
diluted).
Basic and diluted earnings per share are calculated as follows for the fiscal years
ended 30 September 2025 and 30 September 2024:
Change
€ in millions (unless otherwise stated)
2025
2024
absolute
in %
Profit (loss) for the period – basic and diluted
1,015
1,301
(286)
(22)
Compensation of hybrid capital investors ¹
(18)
(29)
11
(38)
Profit (loss) for the period attributable to
shareholders of Infineon Technologies AG –
basic and diluted
997
1,272
(275)
(22)
thereof from continuing operations
987
1,751
(764)
(44)
thereof from discontinued operations
10
(479)
489
+++
Weighted-average number of shares
outstanding (in millions):
Ordinary share capital
1,305.9
1,305.9
–
–
Adjustment for own shares
(5.1)
(4.9)
(0.2)
4
Weighted-average number of shares
outstanding – basic
1,300.8
1,301.0
(0.2)
–
Adjustments for:
Effect of share-based payment
6.6
4.1
2.5
61
Weighted-average number of shares
outstanding – diluted
1,307.4
1,305.1
2.3
0
Basic earnings per share (in euro): 2
Earnings per share (in euro)
from continuing operations
0.76
1.35
(0.59)
(44)
Earnings per share (in euro)
from discontinued operations
0.01
(0.37)
0.38
+++
Earnings per share (in euro) – basic
0.77
0.98
(0.21)
(21)
Diluted earnings per share (in euro): 2
Earnings per share (in euro)
from continuing operations
0.76
1.34
(0.58)
(43)
Earnings per share (in euro)
from discontinued operations
–
(0.37)
0.37
+++
Earnings per share (in euro) – diluted
0.76
0.97
(0.21)
(22)
1 Including the cumulative tax effect.
2 The calculation of earnings per share is based on unrounded figures.
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Notes
9 Financial investments
Financial investments comprise fixed-term deposits with banks and investment funds.
Fixed-term deposits with banks are categorized as financial assets and measured at
amortized cost. Investment funds are categorized as financial assets and measured at
fair value through profit or loss (see also note 2, p. 101 f., and note 27, p. 149 ff.).
Financial investments as of 30 September 2025 and 30 September 2024 comprised
the following:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Fixed-term bank deposits
2
1
1
+++
Investment funds
744
394
350
89
Financial investments
746
395
351
89
The loss allowances on financial investments that are measured at amortized cost
amounted to €0 million in the 2025 and 2024 fiscal years.
Information on Infineon’s credit risk management can be found in note 28. p. 160 f.
10 Trade receivables
Trade receivables result from contracts with customers that are due within one year.
As of 30 September 2025 and 30 September 2024, they consisted of the following:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Trade receivables, third parties
2,239
2,246
(7)
–
Trade receivables, related parties
20
12
8
67
Trade receivables, gross
2,259
2,258
1
0
Loss allowances
(10)
(8)
(2)
25
Trade receivables, net
2,249
2,250
(1)
–
Changes in the loss allowances for trade receivables in the 2025 and 2024 fiscal years
were as follows:
Change
€ in millions
2025
2024
absolute
in %
Loss allowances as of the
beginning of the fiscal year
8
5
3
60
Addition (release) of loss allowances, net
2
3
(1)
(33)
Loss allowances as of the end of the fiscal year
10
8
2
25
Information about Infineon’s credit risk management can be found in note 28. p. 160 f.
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Notes
11 Inventories
Inventories as of 30 September 2025 and 30 September 2024 consisted of
the following:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Raw materials and supplies
664
467
197
42
Work in progress
2,719
2,746
(27)
(1)
Finished goods and merchandise
758
777
(19)
(2)
Total
4,141
3,990
151
4
As of 30 September 2025 and 30 September 2024, finished goods and merchandise
included an asset of €7 million and €5 million, respectively, which resulted from sales
with a right of return.
Inventory write-downs as of 30 September 2025 and 30 September 2024 amounted
to €407 million and €529 million, respectively.
The cost of goods sold included inventories of €8,857 million, which were recognized
as an expense during the 2025 fiscal year (2024: €8,873 million).
12 Other assets
Other assets as of 30 September 2025 and 30 September 2024 consisted of
the following:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Grant receivables
346
314
32
10
VAT and other receivables from tax authorities
144
172
(28)
(16)
Prepaid expenses
131
133
(2)
(2)
Prepayments
45
46
(1)
(2)
Other
43
31
12
39
Other current non-financial assets
709
696
13
2
Prepayments (deposits)
346
415
(69)
(17)
Derivative financial instruments
3
16
(13)
(81)
Other
49
19
30
+++
Other current financial assets
398
450
(52)
(12)
Total other current assets
1,107
1,146
(39)
(3)
Prepayments
210
129
81
63
Other
71
78
(7)
(9)
Other non-current non-financial assets
281
207
74
36
Other investments
121
38
83
+++
Deferred compensation assets
132
123
9
7
Prepayments (deposits)
34
39
(5)
(13)
Other
42
64
(22)
(34)
Other non-current financial assets
329
264
65
25
Total other non-current assets
610
471
139
30
Further information on Infineon’s financial assets can be found in note 27. p. 149 ff.
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Notes
13 Property, plant and equipment
and other intangible assets
Property, plant and equipment, as well as other intangible assets, for the years ended
30 September 2025 and 30 September 2024, can be analyzed as follows:
€ in millions
Cost
Depreciation/amortization
Carrying amount
1 Octo-
ber 2024
Additions
Additions
through
business
combi
nations
Disposals
Reclassi-
fication
Disposal
through
business
sales1
Currency
effects
30 Sep-
tember
2025
1 Octo-
ber 2024
Depre
ciation/
amorti
zation
Disposals
Disposal
through
business
sales1
Impair-
ments/
reversals
of impair-
ments
Currency
effects
30 Sep-
tember
2025
30 Sep-
tember
2025
30 Sep-
tember
2024
Property, plant
and equipment
Land, land rights
and buildings
2,903
81
–
(7)
73
(147)
(30)
2,873
(1,190)
(89)
6
62
–
11
(1,200)
1,673
1,713
Technical equipment
and machinery
15,084
673
3
(214)
533
(304)
(43)
15,732
(10,955)
(1,030)
210
252
(39)
34
(11,528)
4,204
4,129
Other plant and
office equipment
1,736
96
1
(73)
33
(20)
(17)
1,756
(1,476)
(164)
70
16
(1)
14
(1,541)
215
260
Advance payments and
assets under construction
1,907
892
2
(7)
(634)
(16)
(8)
2,136
(7)
–
–
–
(80)
1
(86)
2,050
1,900
Total
21,630
1,742
6
(301)
5
(487)
(98)
22,497
(13,628)
(1,283)
286
330
(120)
60
(14,355)
8,142
8,002
Other intangible assets
Capitalized
development costs
1,875
251
–
(7)
–
–
(11)
2,108
(750)
(151)
7
–
–
3
(891)
1,217
1,125
Customer relationships
1,409
–
187
(295)
–
–
(47)
1,254
(1,017)
(111)
295
–
–
34
(799)
455
392
Technologies
2,410
–
556
(25)
–
–
(108)
2,833
(1,245)
(246)
25
–
–
69
(1,397)
1,436
1,165
Licenses and similar rights
386
43
8
(11)
–
(5)
(4)
417
(298)
(30)
11
3
–
2
(312)
105
88
Remaining other
intangible assets
110
–
22
(7)
–
–
(5)
120
(60)
(9)
7
–
–
3
(59)
61
50
Total
6,190
294
773
(345)
–
(5)
(175)
6,732
(3,370)
(547)
345
3
–
111
(3,458)
3,274
2,820
1 Includes reclassications to “assets classified as held for sale”.
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Notes
€ in millions
Cost
Depreciation/amortization
Carrying amount
1 Octo-
ber 2023
Additions
Additions
through
business
combi
nations
Disposals
Reclassi-
fication
Disposal
through
business
sales
Currency
effects
30 Sep-
tember
2024
1 Octo-
ber 2023
Depre
ciation/
amorti
zation
Disposals
Reclassi-
fication
Disposal
through
business
sales
Impair-
ments/
reversals
of impair-
ments
Currency
effects
30 Sep-
tember
2024
30 Sep-
tember
2024
30 Sep-
tember
2023
Property, plant
and equipment
Land, land rights
and buildings
2,626
49
–
(2)
276
(19)
(27)
2,903
(1,124)
(85)
1
1
8
–
9
(1,190)
1,713
1,502
Technical equipment
and machinery
13,627
797
5
(187)
984
(99)
(43)
15,084
(10,180)
(999)
193
(1)
79
(78)
31
(10,955)
4,129
3,447
Other plant and
office equipment
1,648
117
–
(59)
54
(11)
(13)
1,736
(1,380)
(172)
58
–
8
–
10
(1,476)
260
268
Advance payments and
assets under construction
1,835
1,403
–
(13)
(1,314)
(1)
(3)
1,907
(7)
–
2
–
1
(3)
–
(7)
1,900
1,828
Total
19,736
2,366
5
(261)
–
(130)
(86)
21,630
(12,691)
(1,256)
254
–
96
(81)
50
(13,628)
8,002
7,045
Other intangible assets
Capitalized
development costs
1,640
249
–
(6)
–
–
(8)
1,875
(643)
(110)
2
–
–
–
1
(750)
1,125
997
Customer relationships
1,424
–
53
–
–
–
(68)
1,409
(934)
(126)
–
–
–
–
43
(1,017)
392
490
Technologies
2,403
–
147
(8)
–
–
(132)
2,410
(1,062)
(248)
3
–
–
–
62
(1,245)
1,165
1,341
Licenses and similar rights
371
37
–
(20)
–
–
(2)
386
(284)
(32)
20
–
–
(3)
1
(298)
88
87
Remaining other
intangible assets
116
–
–
–
–
–
(6)
110
(54)
(10)
–
–
–
–
4
(60)
50
62
Total
5,954
286
200
(34)
–
–
(216)
6,190
(2,977)
(526)
25
–
–
(3)
111
(3,370)
2,820
2,977
Depreciation on property, plant and equipment is presented in the Consolidated
Statement of Profit or Loss, mainly in cost of goods sold. Amortization of other
intangible assets is mainly presented in cost of goods sold or selling, general and
administrative expenses. Due to impairment tests, impairment losses were
recognized on property, plant and equipment and other intangible assets which
are reported under other operating expenses (see note 4, p. 114).
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Notes
The net book value of other intangible assets as of 30 September 2025 mainly includes
technologies and customer relationships acquired as part of the acquisition of Cypress
and the Automotive Ethernet business from Marvell. These assets are being amortized
over a maximum remaining period of twelve years. As part of the acquisition of the
Automotive Ethernet business from Marvell, €550 million was recognized for tech-
nologies and €183 million for customer relationships as of 30 September 2025 (see
note 3, p. 112 f.). In connection with the acquisition of Cypress, the carrying amounts
for technologies as of 30 September 2025 were €746 million (30 September 2024:
€987 million) and for customer relationships €220 million (30 September 2024:
€320 million).
Capitalized development costs as of 30 September 2025 include development projects
still under development and therefore not yet ready for use amounting to €599 million
(30 September 2024: €506 million). They are not yet subject to amortization but to an
annual impairment test to ensure their recoverability.
As of 30 September 2025, property, plant and equipment with a carrying amount
of €198 million (30 September 2024: €276 million) was pledged as collateral for
customer prepayments.
14 Goodwill
Changes in goodwill during the 2025 and 2024 fiscal years were as follows:
€ in millions
2025
2024
Cost
Balance as of the beginning of the fiscal year
6,797
6,547
Additions through business combinations
1,364
621
Disposals
–
–
Currency effects
(312)
(371)
Balance as of the end of the fiscal year
7,849
6,797
Accumulated impairments and other changes
Balance as of the beginning of the fiscal year
–
–
Impairments
–
–
Disposals
–
–
Currency effects
–
–
Balance as of the end of the fiscal year
–
–
Carrying amount
Balance as of the beginning of the fiscal year
6,797
6,547
Balance as of the end of the fiscal year
7,849
6,797
The amount shown in the 2025 fiscal year under “Additions through business
combinations” resulted from the acquisition of Marvell’s Automotive Ethernet busi-
ness (see note 3, p. 112 f.).
Infineon carried out the annual goodwill impairment test in the fourth quarter
of the 2025 fiscal year at the level of operating segments, which represent a group of
cash-generating units.
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Infineon determines the recoverable amount of the respective operating segment to
which goodwill has been allocated on the basis of its value in use. The value in use is
measured by estimating the present value of future cash flows that will be generated
by the continuing operations of the segment. Cash flows are discounted using an
appropriate discount rate.
The projection of future cash flows is based on the business plan prepared and approved
by the Management Board in the 2025 fiscal year. It takes into account, among other
things, past experience, current and planned operating results, opportunities as well
as risks resulting from uncertain political and economic conditions such as potential
trade restrictions. Other external sources such as market studies on expected industry
growth were also taken into account. The planning period is five years. Cash flows
after the planning period are estimated using a terminal value.
The key assumptions applied by Infineon in projecting future cash flows relate to
expected revenue growth, profit margins and capital expenditures. The average revenue
growth rates over the planning period are between 8.7 percent and 14.7 percent.
Growth rates partly exceed historical average growth rates of the sectors in which
the operating segments are active, e.g., as markets are expected to recover and are
below the growth rates expected in the previous year. In addition, an improvement
in Segment Result Margins is expected in all operating segments over the planning
period. This is based, among other things, on movements in selling and purchase
prices, productivity improvements in production, positive effects from the “Step Up”
structural improvement program, as well as product mix and scaling effects. For the
Connected Secure Systems segment, the average Segment Result Margin over the
planning period is below the Segment Result Margin of Infineon’s Target Operating
Model (TOM), mainly due to high investment in research and development in the
long-term microcontroller roadmap. The average Segment Result Margins over the
planning period of all the other operating segments, and ultimately the entire Group,
are in line with Infineon’s TOM. The expected Segment Result Margin of the terminal
value is based on the last planning year and above Infineon’s TOM. This takes technical
valuation aspects into account, according to which lower sales growth and lower
investments are assumed in the terminal value (steady state) compared to Infineon’s
TOM. Capital expenditures are planned on the basis of the expected individual
capital intensity of the respective operating segment and consider the current market
situation as well as expected long-term volumes.
The discount rate for future cash flows is based on the after-tax weighted-average
cost of capital (“WACC”) for each operating segment. The Capital Asset Pricing Model
is used to calculate the cost of equity. The relevant pre-tax WACC used to discount
future pre-tax cash flows in line with IAS 36, is derived from estimated future after-tax
cash flows and the after-tax WACC using a typical tax rate for each operating segment.
The risk-free interest rate is derived using the Svensson method, beta factors and debt
ratios are derived from a group of companies comparable to the respective segment.
In this way, the discount rate derived reflects the current market rate of return as well
as the specific risks attached to each operating segment.
127
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
The following table shows the allocation of the carrying amount of goodwill to the
operating segments, as well as the valuation parameters used:
Book value of allocated goodwill
€ in millions
Pre-tax WACC 1
in %
After-tax WACC 1
in %
Terminal growth rate 1
in %
Operating segment
2025
2024
2025
2024
2025
2024
2025
2024
Automotive
2,686
1,476
16.0
15.6
11.6
11.3
1.5
1.5
Green Industrial Power
225
234
15.2
15.0
11.2
11.2
1.5
1.5
Power & Sensor Systems
2,291
2,314
14.6
13.7
11.3
11.0
1.5
1.5
Connected Secure Systems
2,645
2,771
13.9
13.8
11.2
10.9
1.5
1.5
Corporate
2
2
Total
7,849
6,797
1 Valuation parameters as of 30 June 2025 and 30 June 2024 for the respective impairment test in the fourth quarter.
As a result of the impairment tests carried out, Infineon concluded that none of the
operating segments gave rise to an impairment of goodwill in the year under review.
Business planning is characterized, among other things, by uncertainties regarding the
assessment of markets and the macroeconomic environment. Therefore, sensitivity
analyses were carried out for the respective operating segments, taking into account
possible changes in the key assumptions. In order to identify potential risks of
impairment, the analyses assumed, separately, a 15 percent reduction in projected cash
flows, a 3.0 percentage point reduction in Segment Result Margins, a 1.0 percentage
point increase in the after-tax WACC, and a 1.0 percentage point reduction in the
long-term growth rate used in the terminal value calculation. The value in use of the
segments Automotive, Green Industrial Power and Power & Sensor Systems substan-
tially exceeds their respective carrying amounts, including goodwill. Consequently,
only significant changes in the key assumptions which are not considered to be
reasonably possible would trigger an impairment loss on goodwill. In the Connected
Secure Systems segment, the headroom amounts to around €300 million. The
relatively low headroom compared to the other operating segments is primarily
attributable to a significant long-term research and development portfolio from
which substantial returns are expected to be generated only after the planning
period. The value in use would correspond to the carrying amount if projected cash
flows were to decrease by 7 percent, the Segment Result Margin were to decrease by
1.5 percentage points, the after-tax WACC were to increase by 0.6 percentage points
or the long-term growth rate used in the terminal value calculation were to decrease
by 0.9 percentage points.
As all operating segments exhibited headroom, no calculation of the fair value less
costs of disposal was performed.
The acquisition of Marvell’s Automotive Ethernet business resulted in an increase
in goodwill within the Automotive segment. Against this background, a further
impairment test was carried out. No risks of goodwill impairment were identified.
Furthermore, up to the date of preparation of the Consolidated Financial Statements,
there was no indication that the recoverable amount of an operating segment to
which goodwill had been allocated could have fallen below the carrying amount.
128
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
15 Leases
The leases concluded mainly relate to the rental of land, office and storage space.
The changes in the right-of-use assets in the 2025 and 2024 fiscal years were as follows:
€ in millions
Starting
balance
Additions
Additions
through
business
combi
nations
Depreciation
Other
changes
Carrying
amount
2025 fiscal year
Land, land rights
and buildings
359
122
–
(75)
(20)
386
Technical
equipment and
machinery
3
28
–
(3)
(25)
3
Other plant and
office equipment
12
10
–
(9)
–
13
Total
374
160
–
(87)
(45)
402
2024 fiscal year
Land, land rights
and buildings
389
60
4
(73)
(21)
359
Technical
equipment and
machinery
5
1
–
(3)
–
3
Other plant and
office equipment
11
9
–
(7)
(1)
12
Total
405
70
4
(83)
(22)
374
The allocation of discounted and undiscounted lease liabilities by maturity as of
30 September 2025 and 30 September 2024 was as follows:
30 September 2025
30 September 2024
€ in millions
Discounted
lease liabilities
Undiscounted
lease liabilities
Discounted lease
liabilities
Undiscounted
lease liabilities
Due within one year
82
96
73
85
Due after one year to five years
172
211
163
209
Due after more than five years
133
183
121
164
Total
387
490
357
458
The Consolidated Statement of Profit or Loss includes the following amounts in the
2025 and 2024 fiscal years that are attributable to leases:
Change
€ in millions
2025
2024
absolute
in %
Depreciation
87
83
4
5
Impairment (Reversal of impairment)
3
–
3
+++
Interest expenses
17
14
3
21
Expenses for short-term leases
with a term of twelve months or less
4
5
(1)
(20)
Expenses for low-value leases
9
12
(3)
(25)
The Consolidated Statement of Cash Flows includes the following cash-effective
amounts in the 2025 and 2024 fiscal years that are attributable to leases:
Change
€ in millions
2025
2024
absolute
in %
Payments for short-term leases
and low-value leases
13
17
(4)
(24)
Payments for lease liabilities
85
74
11
15
Interest payments
17
14
3
21
Total
115
105
10
10
129
Infineon | Annual Report 2025
Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Some leases contain renewal options that may be exercised by Infineon prior to the
expiration of the non-cancelable lease term. Infineon has possible future (undiscounted)
leasing payments amounting to €155 million (previous year: €76 million) that are
not included in lease liabilities because it is not sufficiently certain that the leases
will be renewed.
In addition, there are future payment obligations for leases that have not yet started
but have already been contracted amounting to €241 million (previous year:
€27 million). Future payment obligations relating to short-term leases with a term
of twelve months or less are immaterial in value.
The lease contracts, in which Infineon subleases and acts as a lessor, are not material
from the Group’s point of view.
The expected non-discounted future minimum lease payments from operating leases
for land and buildings in which Infineon acts as lessor are as follows:
€ in millions
30 Septem-
ber 2025
30 Septem-
ber 2024
Due within one year
4
8
Due after one year to five years
7
7
Due after more than five years
4
1
Total
15
16
16 Financial debt
Financial debt as of 30 September 2025 and 30 September 2024 consisted of
the following:
€ in millions
30 Septem-
ber 2025
30 Septem-
ber 2024
Bond €500 million, coupon 0.625%, due 2025
–
500
Bond €750 million, coupon 1.125%, due 2026
749
–
USPP note US$350 million, interest rate 4.10%, due 2026
298
–
Short-term financial debt and current portion of long-term financial debt
1,047
500
Loans payable to banks1, €1.000 million and US$1.000 million,
weighted average interest rate: 3.54%
1,846
–
Bond €750 million, coupon 1.125%, due 2026
–
748
Bond €500 million, coupon 3.375%, due 2027
499
498
Bond €750 million, coupon 1.625%, due 2029
746
744
Bond €750 million, coupon 2.875%, due 2030
744
–
Bond €650 million, coupon 2.00%, due 2032
641
641
USPP note US$350 million, interest rate 4.10%, due 2026
–
312
USPP note US$235 million, interest rate 4.30%, due 2028
200
210
USPP notes US$1,300 million, weighted average interest rate 2.88%,
due 2027 – 2033
1,106
1,158
Long-term financial debt
5,782
4,311
Total
6,829
4,811
1 These are variable-interest financial liabilities.
In January 2025, S&P Global Ratings confirmed Infineon’s investment grade rating of
“BBB +” with a stable outlook.
On 13 February 2025, as part of its EMTN (European Medium Term Notes) program,
Infineon Technologies AG issued a non-subordinated, unsecured bond with a nominal
value of €750 million and a coupon of 2.875 percent per year, due in the 2030 fiscal
year. The bond is listed on the Luxembourg Stock Exchange.
130
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
On 17 February 2025, a €500 million bond was repaid as scheduled.
On 7 April 2025, acquisition financing was concluded to finance the acquisition of
Marvell’s Automotive Ethernet business (see note 3, p. 112 f.). The financing comprises
two facilities of €1 billion and US$ 1 billion. Both facilities were utilized in full at the
time of completion of the acquisition on 14 August 2025. The loans have a term of up
to two years from the date they were utilized.
Furthermore, Infineon signed in the 2025 fiscal year a committed €2 billion revolving
credit facility with a tenor of five years and two one-year extension options each at the
discretion of the lenders. In addition, there are uncommitted bilateral money market
funding facilities with an aggregated amount of €1.7 billion. As of 30 September 2025,
the committed revolving credit facility and the money market funding facilities have
not been drawn down.
The total lines of credit as of 30 September 2025 and 30 September 2024 are
summarized in the following table:
Term, € in millions
Nature of financial
institution
commitment
30 September 2025
30. September 2024
Aggregate facility
Drawn
Available
Aggregate facility
Drawn
Available
Short-term
uncommitted
1,726
–
1,726
2,226
–
2,226
Short-term
committed
12
–
12
13
–
13
Long-term
committed
3,852
1,852
2,000
–
–
–
Total
5,590
1,852
3,738
2,239
–
2,239
Nominal amounts of financial debt and interest maturing in the coming years were
as follows:
€ in millions
30 September 2025
30 September 2024
Financial debt
Interest
Financial debt
Interest
Due within one year
1,048
194
500
109
Due after one year to five years
4,648
368
3,148
301
Due after more than five years
1,161
56
1,186
88
Total
6,857
618
4,834
498
131
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
17 Provisions
Current and non-current provisions as of 30 September 2025 consisted of the following:
€ in millions
1 October
2024
Addition
Additions
through
business
combi
nations
Usage
Reversal
30 Sep-
tember
2025
Obligations to employees
558
406
3
(410)
(13)
544
Provisions for restructuring
222
98
–
(203)
(8)
109
Warranties
62
17
–
(19)
(7)
53
Other
52
35
–
(18)
(4)
65
Total provisions
894
556
3
(650)
(32)
771
thereof current
698
660
thereof non-current
196
111
Obligations to employees included, among others, costs of variable remuneration,
outstanding vacation and flextime, service anniversary awards, other personnel costs
and social security costs.
Provisions for restructuring measures mainly related to costs for personnel measures
as part of the Group-wide “Step Up” structural improvement program (see note 4,
p. 114).
Provisions for warranties mainly represented the estimated future cost of fulfilling
contractual requirements associated with products sold.
Other provisions comprised mainly provisions for asset retirement obligations and
miscellaneous other obligations.
Of the total provisions as of 30 September 2025 and 30 September 2024, cash outflows
of €660 million and €698 million, respectively, were expected to occur within one
year. For the non-current provisions, the cash outflow was expected to occur after
more than one year. A total of €44 million as of 30 September 2025 and €50 million
as of 2024 of non-current provisions were attributable to length-of-service related
anniversary awards.
132
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
18 Other liabilities
Other liabilities as of 30 September 2025 and 30 September 2024 consisted of
the following:
30 September
2025
30 September
2024
Change
€ in millions
absolute
in %
Payroll and similar obligations to employees
285
223
62
28
VAT and other liabilities to tax authorities
42
39
3
8
Other
53
50
3
6
Other current non-financial liabilities
380
312
68
22
Reimbursement obligations to customers
950
1,017
(67)
(7)
Prepayments (deposits)
114
96
18
19
Accrued interest expense
55
41
14
34
Derivative financial instruments
5
2
3
+++
Other
62
41
21
51
Other current financial liabilities
1,186
1,197
(11)
(1)
Total other current liabilities
1,566
1,509
57
4
Payroll and similar obligations to employees
183
127
56
44
Other
25
22
3
14
Other non-current non-financial liabilities
208
149
59
40
Prepayments (deposits)
717
700
17
2
Other
39
2
37
+++
Other non-current financial liabilities
756
702
54
8
Total other non-current liabilities
964
851
113
13
Further information on Infineon’s financial liabilities can be found in note 27. p. 149 ff.
133
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
19 Pension plans
Defined benefit pension plans
Infineon’s employee benefit plans consist of domestic and foreign defined benefit
and defined contribution pension plans providing retirement, disability and surviving
dependents’ benefits. For Infineon, the significant benefit plans in Germany pertain to
Infineon Technologies AG and, within the foreign benefit plans, to Infineon Technolo-
gies Austria AG, Austria.
In Germany, Infineon primarily offers defined contribution benefits which provide
for the employees when they reach retirement age, or in the event of disability or
death. The statutory framework is provided by the Company Pension Act (in German:
Betriebsrentengesetz) and by employment law in general. With the Infineon Pension
Plan, new entrants receive a defined contribution benefit, which is funded by
Infineon. Payments by the Infineon Pension Plan are generally made in twelve annual
installments. For active employees who were entitled to benefits in the form of an
annuity before the Infineon Pension Plan came into force, this commitment was
transferred into the Infineon Pension Plan and thereby the possibility of an annuity
was guaranteed. Together with former employees whose pension benefit obligations
were not transferred into the Infineon Pension Plan, this group makes up the largest
part of the defined benefit obligations at this time. A corresponding provision
is recorded for the German defined benefit pension plans, which are backed for the
most part by plan assets. Individual agreements are in place for the Management
Board members, which are also partly backed by plan assets. The major portion of
the plan assets is managed by a pension trust in the legal form of a registered
association. This is composed of executives of Infineon Technologies AG, and the
investment strategy is defined by Infineon Technologies AG.
The benefit obligations of some foreign plans are measured according to the income
in the last month or year of service; others are dependent on average income over
the service period. Certain foreign pension plans are managed by country-specific
external pension funds or other pension schemes. The obligations arising from foreign
defined benefit pension plans are partly covered by plan assets. The management
of existing foreign plan assets is performed by the respective pension scheme.
The valuation date of the pension plans is 30 September.
The Group-defined benefit pension plans are exposed to risks arising from changes
to actuarial assumptions such as discount factors, salary and pension trends,
investment risks and longevity risks. A lower discount rate leads to higher pension
liabilities. Worse than expected growth in plan assets could lead to a deterioration
of the funded status.
Movements in Infineon’s German (domestic) and non-German (foreign) pension plans
and the plan assets as of 30 September 2025 and 30 September 2024 are presented
in the following table:
134
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
€ in millions
2025
2024
Domestic plans
Foreign plans
Total
Domestic plans
Foreign plans
Total
Change in defined benefit obligations taking into account future salary increases:
Present value as of the beginning of year
(925)
(193)
(1,118)
(801)
(188)
(989)
Current service cost
(24)
(9)
(33)
(19)
(8)
(27)
Interest cost
(30)
(8)
(38)
(32)
(9)
(41)
Actuarial gains (losses) for:
Experience adjustments
(8)
2
(6)
(17)
(1)
(18)
Adjustments to demographic assumptions
–
5
5
–
2
2
Adjustments to financial assumptions
58
7
65
(81)
(9)
(90)
Plan settlements
–
2
2
–
–
–
Benefits paid
34
15
49
31
11
42
Employee contributions
(2)
(1)
(3)
(6)
–
(6)
Business combinations/disposals
2
–
2
–
7
7
Reclassification into liabilities held for sale
–
5
5
–
–
–
Currency effects
–
8
8
–
2
2
Present value of defined benefit obligation as of the end of year
(895)
(167)
(1,062)
(925)
(193)
(1,118)
Change in fair value of plan assets:
Fair value of plan assets as of the beginning of year
748
67
815
657
64
721
Interest income
25
3
28
27
4
31
Gains (losses) from remeasurements
Return on plan assets (excluding amounts included in interest income)
23
(4)
19
63
3
66
Contributions from Infineon
28
13
41
26
10
36
Employee contributions
2
1
3
6
–
6
Benefits paid
(34)
(15)
(49)
(31)
(11)
(42)
Business combinations/disposals
–
–
–
–
(3)
(3)
Plan settlements
–
(2)
(2)
–
–
–
Other plan changes
(1)
–
(1)
–
–
–
Currency effects
–
(4)
(4)
–
–
–
Fair value of plan assets as of the end of year
791
59
850
748
67
815
Net pension liability
(104)
(108)
(212)
(177)
(126)
(303)
thereof: Infineon Technologies AG
(85)
–
(85)
(156)
–
(156)
thereof: Infineon Technologies Austria AG
–
(48)
(48)
–
(56)
(56)
135
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Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Pension obligations are reported in the Consolidated Statement of Financial Position
under “Pensions and similar commitments”.
Since no asset ceilings applied, the funded status of the Infineon pension plans
corresponded to the amounts reported in the Consolidated Statement of Financial
Position as of 30 September 2025 and 30 September 2024.
The funding of the defined benefit pension plans as of 30 September 2025 and
30 September 2024 was as follows:
€ in millions
30 September 2025
30 September 2024
Domestic
plans
Foreign
plans
Total
Domestic
plans
Foreign
plans
Total
Plans that are
wholly unfunded
55
83
138
55
97
152
Plans that are wholly
or partly funded
840
84
924
870
96
966
Total
895
167
1,062
925
193
1,118
Actuarial assumptions
The weighted-average assumptions used for the actuarial calculation for the defined
benefit obligations were as follows:
in %
30 September 2025
30 September 2024
Domestic
plans
Foreign
plans
Domestic
plans
Foreign
plans
Discount rate at the end of the fiscal year
3.9
4.8
3.4
4.4
Rate of salary increase
2.1
5.5
2.2
5.5
Projected future pension increases
1.9
2.5
2.0
2.6
Most discount rates are determined using the Willis Towers Watson RATE:Link
approach, which is based on high-grade fixed-interest corporate bonds from issuers
carrying a very high credit rating, with the same maturity and in the same currency
as the pension obligations to be assessed.
The 2018 G mortality tables by Dr. Klaus Heubeck were used for Germany as in the
previous year, and for Austria, the AVÖ (Aktuarvereinigung Österreichs) 2018-P tables
were applied.
Sensitivity analysis
The following sensitivity analysis table shows how the present value of all defined
benefit pension obligations would be affected by changes in the aforementioned
actuarial assumptions. In each case, they reflect the effect of changes in one actuarial
assumption while all other assumptions remain constant.
€ in millions
30 September 2025
30 September 2024
Domestic
plans
Foreign
plans
Total
Domestic
plans
Foreign
plans
Total
Present value of defined
benefit pension plans with:
a 50 basis points
higher discount rate
847
164
1,011
871
183
1,054
a 50 basis points
lower discount rate
949
180
1,129
985
203
1,188
a 50 basis points
higher expected rate
of salary increase
904
175
1,079
934
198
1,132
a 50 basis points
lower expected rate
of salary increase
888
168
1,056
917
188
1,105
a 50 basis points
higher expected rate
of pension increase
915
175
1,090
948
196
1,144
a 50 basis points
lower expected rate
of pension increase
877
169
1,046
904
189
1,093
Increase in life expectancy
of one year
914
173
1,087
946
195
1,141
136
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Investment strategy
Infineon aims to optimize the risk-return profile of the plan assets against the liabilities
using a diversified portfolio of investments within a defined risk budget, thereby
increasing the funding ratio in the long term.The plan assets are invested with several
fund managers. The investment guidelines require a mix of active and passive invest-
ment management programs covering different asset classes. Taking the duration
of the underlying liabilities into account, a portfolio of investments of plan assets in
equity, debt and other securities, as well as real estate and reinsurance policies, is
targeted to maximize the total long-term return on assets for a given level of risk.
Investment risk is reviewed on an ongoing basis through periodic portfolio reviews,
in coordination with investment managers and annual liability measurements.
Investment policies and strategies are periodically reviewed as part of detailed studies
of assets and liabilities by independent investment advisors and actuaries to ensure
the objectives of the plans are met, taking into account any changes in plan structure,
market conditions or other material items.
Plan asset allocation
As of 30 September 2025 and 30 September 2024, the allocation of invested plan assets
to the major asset categories was as follows:
€ in millions
30 September 2025
30 September 2024
Quoted
in an
active market
Not quoted
in an
active market
Quoted
in an
active market
Not quoted
in an
active market
Government bonds
200
1
186
1
Corporate bonds
172
–
175
–
Equity securities
293
–
282
–
Cash and cash equivalents
10
–
8
–
Reinsurance policies
–
38
–
41
Property
2
27
3
26
Other
105
2
70
23
Total
782
68
724
91
Government and corporate bonds are traded in liquid markets and the majority have
an investment grade rating. The equities within the plan assets are globally diversified.
In accordance with Infineon’s internal policy there is no investment in the shares
or debt instruments of Infineon. The position “Other” in the previous table comprises
exchange-traded commodities (ETC) and other investment funds. The market value
of the ETC held in Germany was €67 million as of 30 September 2025 (previous year:
€48 million).
The market value of the land and real estate leased to Infineon group companies by
the legally independent pension trust amounted to €27 million and €26 million as of
30 September 2025 and 30 September 2024 respectively.
The return on plan assets, and interest gains or gains from remeasurement in the fiscal
year ended 30 September 2025 was €47 million (30 September 2024: €97 million).
Amounts recognized in the Consolidated Statement of Profit or Loss
and in the Consolidated Statement of Comprehensive Income
The expenses for defined benefit obligations and income for the 2025 and 2024 fiscal
years comprised the following:
€ in millions
2025
2024
Domestic
plans
Foreign
plans
Total
Domestic
plans
Foreign
plans
Total
Current service cost
(24)
(9)
(33)
(19)
(8)
(27)
Interest cost
(30)
(8)
(38)
(32)
(9)
(41)
Interest income
on plan assets
25
3
28
27
4
31
Pension cost
(29)
(14)
(43)
(24)
(13)
(37)
137
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Service cost was recorded within cost of goods sold, research and development
expenses or selling, general and administrative expenses. Interest cost and interest
income on plan assets were recorded net as part of financial expenses.
Actuarial gains before taxes of €83 million for the 2025 fiscal year and losses of
€40 million for the 2024 fiscal year were recognized outside of profit (loss) for the
period in other comprehensive income.
Cumulative actuarial gains as of 30 September 2025 amounted to €4 million, while
cumulative actuarial losses as of 30 September 2024 amounted to €79 million.
In the 2026 fiscal year, payments of €41 million are expected to be made to plan
assets, of which €39 million relates to benefits paid directly to pension recipients by
the Group companies.
The weighted-average duration of defined benefit plans was around 12 and 13 years
as of 30 September 2025 and 30 September 2024, respectively.
The following table shows the expected disbursements for defined benefit plans for
the next ten fiscal years as of 30 September 2025 and 30 September 2024:
€ in millions
30 Septem-
ber 2025
30 Septem-
ber 2024
Due within one year
58
58
Due after more than one year to five years
261
243
Due after more than five years up to ten years
368
372
Total
687
673
Defined contribution plans
For defined contribution plans, fixed contributions are made to external insurance
providers or funds. Infineon has no further performance obligations or risks with
regard to these pension plans in excess of the fixed contributions paid. Additionally,
Infineon makes contributions to government pension schemes. Expenses for defined
contribution plans amounted to €356 million and €355 million in the 2025 and 2024
fiscal years.
20 Equity
Ordinary share capital
As of 30 September 2025, the ordinary share capital amounted to €2,611,842,274 and
was fully paid up. It was divided into 1,305,921,137 no par value registered shares,
each representing €2 of the Company’s ordinary share capital. Each share grants the
holder one vote and an equal portion of the profits in the form of a dividend, as
resolved by the Annual General Meeting.
Authorized share capital
As of 30 September 2025, the Company’s Articles of Association provided for two
authorized share capitals amounting to up to €520,000,000:
– Section 4, paragraph 4 of the Articles of Association provides that the Management
Board is authorized, with the approval of the Supervisory Board, to increase the
share capital in the period up to 22 February 2029 once or in partial amounts by a
total of up to €490,000,000 by issuing new no par value registered shares against
contributions in cash or in kind (Authorized Capital 2024/I). The new shares participate
in the profits of the Company as from the beginning of the fiscal year in which they
are issued. To the extent legally permissible, the Management Board may, with the
approval of the Supervisory Board and in deviation from section 60, paragraph 2
of the German Stock Corporation Act, determine that the new shares participate in
the profits from the beginning of a fiscal year that has already expired and for which,
at the time of their issue, no resolution had been passed by the Annual General
Meeting relating to the utilization of unappropriated profits. Within the framework of
the Authorized Capital 2024/I, the Management Board is authorized, with the approval
of the Supervisory Board, to exclude the subscription rights of the shareholders
138
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
in certain cases. Cash capital increases with subscription rights excluded pursuant
to section 186, paragraph 3, sentence 4 of the German Stock Corporation Act, are
limited to a maximum of 10 percent of the Company’s share capital, whereby the
calculation is required to be based on the lowest amount of share capital at the
time the resolution relating to the authorization is passed at the Annual General
Meeting, the authorization takes effect, or the authorization is exercised. For share
capital increases against contributions in kind or a combination of cash contribu-
tions and contributions in kind, the authorization further provides an upper limit
of 10 percent of the share capital existing at the time the Annual General Meeting
passed the resolution relating to the authorization.
– Section 4, paragraph 7 of the Articles of Association provides that the Management
Board is authorized, subject to approval by the Supervisory Board, to increase
the share capital in the period up to 19 February 2030 – either once or in partial
amounts – by a total of up to €30,000,000 by issuing new no par value registered
shares against contributions in cash for the purpose of issuance to employees of
the Company and to employees as well as to members of management bodies of its
Group companies. The subscription rights of existing shareholders are excluded in
relation to these shares. To the extent permitted by law, the shares may be issued in
such a manner that the contribution to be paid on such shares is covered by the
portion of the net income for the year that the Management Board and the Super
visory Board could transfer to revenue reserves pursuant to section 58, paragraph 2
of the German Stock Corporation Act. The Management Board is required to
determine the further rights attached to the shares and the terms of the share
issue with the approval of the Supervisory Board (Authorized Capital 2025/I).
Conditional capital
As of 30 September 2025, the Company’s Articles of Association provided for a
conditional capital amounting to up to €260,000,000:
– Pursuant to section 4, paragraph 6 of the Articles of Association the share capital is
conditionally increased by up to €260,000,000 by the issue of up to 130,000,000 new
no par value registered shares for the purpose of granting shares to the creditors
or holders of convertible bonds and/or bonds with warrants issued by the Company
or a subordinated Group company on the basis of the authorization granted at the
Annual General Meeting on 23 February 2024 (Conditional Capital 2024/1).
Capital reserve
The pro rata expense for share-based payments resulted in an increase in the capital
reserve of €212 million in the 2025 fiscal year (2024: €130 million). Due to the transfer
of own shares within the framework of share-based payment to employees and
Management Board members, the capital reserve, as well as the line item for own
shares, decreased by €91 million (2024: €63 million). Tax effects totaling €9 million
(2024: €12 million) increased the capital reserve. The repayment of the first tranche
of the hybrid bond on 28 March 2025 (see “Hybrid capital” below) reduced the capital
reserve by €7 million.
Retained earnings
The following table shows a reconciliation of retained earnings as of 30 September 2025
and 30 September 2024:
€ in millions
As of 1 October 2023
6,204
Profit (loss) for the period attributable to shareholders
and hybrid capital investors of Infineon Technologies AG
1,301
Dividends to shareholders of Infineon Technologies AG
(456)
Compensation of hybrid capital investors
(39)
Actuarial gains (losses) on pensions and similar commitments
net of tax of minus €10 million
(32)
As of 30 September 2024
6,978
Profit (loss) for the period attributable to shareholders
and hybrid capital investors of Infineon Technologies AG
1,015
Dividends to shareholders of Infineon Technologies AG
(455)
Compensation of hybrid capital investors
(28)
Actuarial gains (losses) on pensions and similar
commitments net of tax of minus €18 million
66
As of 30 September 2025
7,576
Included in “Actuarial gains (losses) on pensions and similar commitments after taxes”
in the 2024 fiscal year is a figure for the share of profit (loss) of associates and joint
ventures accounted for using the equity method of minus €1 million.
139
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Dividends
For the 2024 fiscal year, a cash dividend of €0.35 per share (total amount: €455 million)
was paid. For the 2023 fiscal year, a cash dividend of €0.35 per share (total amount:
€456 million) was paid.
With regard to the 2025 fiscal year, a dividend of €0.35 for each share entitled to a
dividend shall be proposed to be paid from the €457 million of distributable profits
of Infineon Technologies AG. Taking own shares not entitled to dividends held by the
Company at the time of this report into account, this would result in an expected
distribution of approximately €456 million. Payment of this dividend depends on the
approval of the Annual General Meeting on 19 February 2026.
Other reserves
Changes in other reserves during the 2025 and 2024 fiscal years were as follows:
€ in millions
2025
2024
Pre-tax
Tax
Net of tax
Pre-tax
Tax
Net of tax
Currency effects
(366)
–
(366)
(519)
–
(519)
Unrealized gains (losses)
resulting from
hedge accounting
4
(1)
3
4
(1)
3
Realized gains (losses)
resulting from
hedge accounting
3
–
3
6
–
6
Cost of hedging
–
5
5
5
1
6
Total
(359)
4
(355)
(504)
–
(504)
Own shares
In the period from 15 September 2025 to 14 November 2025, the Company acquired
750,000 own shares as part of a limited share buyback program, 304,800 of which
by 30 September 2025. The total purchase price paid for the shares amounted to
€25 million, €10 million of which by 30 September 2025. The buyback was carried out
on behalf of Infineon by an independent financial institution. The repurchased shares
serve the sole purpose of allocating shares to employees of Infineon, members of the
Management Board of the Company and members of the Management Board and
management of affiliated companies as part of share-based payment. The obligation
to the financial institution to repurchase 750,000 shares was valued at €23 million at
the time of the commissioning and led to a corresponding reduction in equity. The
difference of €1 million between the expected repurchase value and the total purchase
price of the shares acquired by 30 September 2025 was recognized in the Consolidated
Statement of Profit or Loss as a financial expense in the 2025 fiscal year.
Own shares held by the Company as of the date of the Annual General Meeting carry
no voting rights and are not entitled to a dividend.
The following table shows the changes in the holdings of own shares and presents a
reconciliation of the number of shares outstanding to the number of shares issued as
of 30 September 2025 and 30 September 2024:
Number of shares
2025
2024
Shares outstanding at the beginning of the fiscal year
1,299,163,212
1,303,750,111
Purchase of own shares
(304,800)
(7,000,000)
Transfer of own shares under the Performance Share
and Restricted Stock Unit Plans (see note 22, p. 142 ff.)
3,281,335
2,413,101
Shares outstanding at the end of the fiscal year
1,302,139,747
1,299,163,212
Repurchased own shares
3,781,390
6,757,925
Shares issued at the end of the fiscal year
1,305,921,137
1,305,921,137
After completion of the limited share buyback program on 14 November 2025, the
number of own shares amounted to 4,226,590.
140
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Hybrid capital
Infineon Technologies AG issued a perpetual hybrid bond on 1 October 2019 to
refinance the acquisition of Cypress, which is an equity instrument under IAS 32.
The term is not contractually limited; the bond has no final maturity date. The hybrid
bond can only be canceled by Infineon. The investors have no cancellation rights
and cannot trigger a premature repayment liability for Infineon. Distributions are at
Infineon’s sole discretion. The hybrid bond was issued in two perpetual tranches,
with a nominal value of €600 million each.
On 27 January 2025, Infineon Technologies AG terminated the first tranche in accor-
dance with the contract and repaid it (including the compensation due) on 28 March
2025. A total of €606 million was recognized as a reduction in hybrid capital and
€7 million as a reduction in the capital reserve. A total of €3 million was recognized
as an interest expense for the period between termination and the repayment of
the first tranche.
The hybrid capital investors’ compensation is generally paid yearly in arrears on
1 April of each year (subject to repayment or redemption). For the second tranche of
the perpetual hybrid bond, €22 million was paid out as scheduled on 1 April 2025.
In the 2025 fiscal year, €28 million (2024: €39 million) was recognized in equity as
compensation of hybrid capital investors (see note 8, p. 121).
21 Capital management
Infineon’s main capital management objective is to ensure financial flexibility at all
times on the basis of a solid capital structure. It is of prime importance that sufficient
cash funds are available to finance operating activities and planned investments
throughout all phases of the business cycle. On the other hand, debt should only
constitute a modest portion of the financing mix.
Infineon derives its long-term key objectives for capital management based on these
principles and the clear target to remain investment grade. In terms of liquidity, gross
cash should amount to at least 10 percent of revenue on average throughout a year.
Gross financial debt should not exceed two times EBITDA.
Infineon is not subject to any statutory capital requirements, nor are any such defined
in the Articles of Association.
Capital management, as well as the corresponding targets and definitions, is based
on indicators derived from the consolidated IFRS financial statements. Gross cash
is defined as the total of cash and cash equivalents and financial investments. Gross
financial debt comprises short-term and long-term financial debt. Infineon defines
EBITDA as earnings from continuing operations before interest, taxes and depreciation
and amortization.
The gross cash position decreased from €2,201 million as of 30 September 2024, to
€2,102 million as of 30 September 2025 (for details, see the chapter “Review of liquidity”
in the Combined Management Report, p. 59 f.). With revenue of €14,662 million, the
ratio of gross cash to revenue as of 30 September 2025 was 14.3 percent (30 Septem-
ber 2024: 14.7 percent).
With gross financial debt of €6,829 million as of 30 September 2025 (30 September
2024: €4,811 million), and EBITDA of €3,453 million for the 2025 fiscal year (2024:
€4,097 million), the gross debt to EBITDA ratio was 2.0 as of 30 September 2025
(30 September 2024: 1.2). We view this situation as temporary, as increased financial
debt following our Ethernet acquisition is meeting a cyclically subdued EBITDA.
141
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Infineon continues to have sufficient financial flexibility to ensure that, in addition
to financing its planned investments and upcoming repayments of financial debt,
it is also able to regularly pay dividends.
The USPP notes totaling US$1,885 million issued in April 2016 and June 2021 contain
a number of standard covenants, including a debt coverage ratio, which provides
for a certain relationship between the size of debt (adjusted) and earnings (adjusted).
In the 2025 fiscal year, Infineon has met the minimum requirements of all covenants.
Should Infineon not comply with the covenants attached to the USPP notes, then
all USPP notes outstanding as of 30 September 2025 amounting to US$1,885 million
(see note 16, p. 130) could become immediately repayable.
22 Share-based payment
The Company makes use of the Performance Share Plan, the Restricted Stock Unit
Plan and, since the 2025 fiscal year, the Bonus to Share Plan in order to provide
share-based payments.
Performance Share Plan
A Long-Term Incentive (LTI) plan, the Performance Share Plan, was developed for
employees, members of the Management Board of the Company and members of
the Management Boards and management of affiliated companies.
Under this plan, (virtual) performance shares are initially provisionally granted on
1 April of the fiscal year according to a predetermined LTI grant amount in euros.
With the granting of a (virtual) performance share, the participants in the plan acquire
the right to receive (real) Infineon shares once they have completed a four-year
holding period for the personal investment in Infineon shares their position requires.
The number of real Infineon shares to be transferred depends on the achievement
of targets during the performance period.
The performance period begins on 1 October of the first fiscal year of the performance
period and ends four years later on 30 September. Performance during the performance
period is measured using two performance criteria. The first is a financial performance
criterion, relative Total Shareholder Return (TSR), whereby Infineon is compared to
companies in one selected industry peer group, while the second is a non-financial
performance criterion comprising strategy-derived environmental, social and gover-
nance (ESG) objectives. The TSR target accounts for 80 percent and the ESG targets
20 percent of the overall target achievement. For tranches from 1 April 2023, the
TSR target accounts for 70 percent to 80 percent and the ESG targets for 20 percent
to 30 percent of the overall target achievement. TSR and the ESG target achievements
can be between 0 percent and 150 percent.
For tranches as of 1 April 2025, a new financial performance criterion is being added
in the form of the Target Operating Model (TOM) with its equally weighted long-term
financial indicators: revenue growth, Segment Result Margin and the ratio of adjusted
Free Cash Flow to revenue. In addition, regarding the TSR Infineon is compared to
companies in two selected industry peer groups. The TSR target and TOM target
each account for 40 percent and the ESG targets for 20 percent of the overall target
achievement. TSR, TOM and the ESG target achievements can be between 0 percent
and 200 percent.
The tranche is granted on 1 April in the first fiscal year of the performance period
(allocation day). The vesting period begins on the allocation day. In contrast to the
performance period, the vesting period ends four years after the allocation day, i.e.,
on 31 March. At the end of the four-year performance period, the target achievement
is determined.
142
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
The final number of performance shares to be allocated after the expiry of the
vesting period is determined by multiplying the number of provisionally allocated
performance shares by the overall target achievement of the two or, from 1 April 2025,
three performance criteria during the performance period. The final allocation of
the performance shares within an LTI tranche may not result in a profit (before tax)
of more than 250 percent of the respective LTI grant amount; above this cap, all
performance shares still to be allocated lapse.
The fair value of the performance shares at the date of allocation was determined
by an external expert using a recognized financial-mathematical method (the Monte
Carlo simulation model) to predict share price movements and the TSR target
achievement. The fair value of the instruments granted is determined taking into
account future dividends as well as the payment cap.
The following is an overview of the allocations made:
Tranche
End of the
waiting period
Average
Infineon share
price in the
60 trading
days before
the start of the
performance
period in €
Number of
performance
shares
outstanding
as of 30 Sep-
tember 2025
Fair value per
performance
share in €
2025 fiscal year: Employees
31 March 2029
31.50
640,170
31.04
2025 fiscal year: Members of
the Management Board
31 March 2029
31.50
148,222
31.04
2024 fiscal year: Employees
31 March 2028
34.14
558,917
24.76
2024 fiscal year: Members of
the Management Board
31 March 2028
34.14
148,067
24.76
2023 fiscal year: Employees
31 March 2027
25.00
616,587
32.31
2023 fiscal year: Members of
the Management Board
31 March 2027
25.00
207,343
32.31
2022 fiscal year: Employees
31 March 2026
34.85
429,096
27.63
2022 fiscal year: Members of
the Management Board
31 March 2026
34.85
148,737
27.63
Movements in performance shares were as follows:
in number of shares (in millions)
2025
2024
Performance shares outstanding at the beginning of the fiscal year
2.8
3.2
Granted
0.8
0.7
Allocated
(0.5)
(0.5)
Forfeited
(0.1)
(0.1)
Expired
(0.1)
(0.5)
Performance shares outstanding at the end of the fiscal year
2.9
2.8
Restricted Stock Unit Plan
Under this plan, (virtual) restricted stock units are initially provisionally granted on
1 December and on 1 April of the fiscal year according to a predetermined LTI grant
amount in euros. With the allocation of a (virtual) restricted stock unit, the plan
participants acquire the right to receive a (real) Infineon share after the expiry of the
vesting period, provided that the employees are still employed by Infineon at this
time. The final allocation is made in stages (each representing 25 percent of the
provisionally allocated restricted stock units) after the expiry of the respective vesting
period.
In connection with the acquisition of Marvell’s Automotive Ethernet business Infineon
replaced the share-based compensation held by the transferring employees with
1,394,291 Restricted Stock Units (see note 3, p. 112 f.). The final allocation will be made
in stages after the expiry of the respective vesting period (60 percent in April 2026
and 20 percent each in April 2027 and April 2028).
The fair value of the restricted stock units at the date of allocation was determined
by an external expert using a recognized financial-mathematical method (the Monte
Carlo simulation model) to predict share price movements. The fair value of the
instruments granted is determined taking into account future dividends.
143
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
The following is an overview of the allocations made:
Tranche
End of the
waiting period
Average
Infineon share
price in the
60 trading
days prior to
the respective
grant date in €
Number of
restricted
stock units as
of 30 Septem-
ber 2025
Fair value per
restricted
stock unit in €
2025 fiscal year:
1st tranche August 1
31 March 2026
36,082
836,575
36.27
2nd tranche August 1
31 March 2027
36,082
278,858
35.89
3rd tranche August 1
31 March 2028
36,082
278,858
35.49
1st tranche April
31 March 2026
34.78
889,669
30.62
2nd tranche April
31 March 2027
34.78
889,669
30.24
3rd tranche April
31 March 2028
34.78
889,669
29.84
4th tranche April
31 March 2029
34.78
889,669
29.34
1st tranche December
30 November 2025
30.00
101,716
30.47
2nd tranche December
30 November 2026
30.00
101,716
30.14
3rd tranche December
30 November 2027
30.00
101,716
29.77
4th tranche December
30 November 2028
30.00
101,716
29.38
2024 fiscal year:
2nd tranche April
31 March 2026
33.47
842,692
30.85
3th tranche April
31 March 2027
33.47
842,692
30.52
4th tranche April
31 March 2028
33.47
842,692
30.16
2nd tranche December
30 November 2025
31.40
211,325
34.86
3rd tranche December
30 November 2026
31.40
211,325
34.47
4th tranche December
30 November 2027
31.40
211,325
34.04
2023 fiscal year:
3rd tranche April
31 March 2026
34.19
776,688
36.16
4th tranche April
31 March 2027
34.19
776,688
35.77
2022 fiscal year:
4th tranche April
31 March 2026
32.90
603,075
29.56
1 Tranches of share-based payment awards in connection with the acquisition of Marvell’s Automotive Ethernet business.
2 Average Infineon share price in the 30 trading days up to 7 August 2025 in €.
Movements in restricted stock units were as follows:
in number of shares (in millions)
2025
2024
Outstanding restricted stock units at the beginning of the fiscal year
8.8
6.5
Granted
5.5
4.8
Allocated
(2.8)
(1.9)
Forfeited
(0.8)
(0.6)
Outstanding restricted stock units as of the end of the fiscal year
10.7
8.8
Bonus to Share Plan
Under this plan and since the 2025 fiscal year, a defined percentage of the annual STI
(Short-Term Incentive) is converted for plan participants into Infineon shares. The plan
participants have the right to receive Infineon shares after the expiry of the vesting
period, provided that the employees are still employed by Infineon at the time of the
final allocation. The number of shares to be transferred depends on the total target
achievement at the end of the vesting period and the STI base amount.
The vesting period begins on 1 October and ends on 30 September of a fiscal year.
The performance measurement takes place during the vesting period using the
weighted performance criteria of the STI. The total target achievement results from
the addition of the weighted target achievement levels of the STI performance
criteria and can be between 0 percent and 250 percent.
The number of shares to be allocated after the end of the vesting period is calculated
by multiplying the total target achievement by the STI base amount divided by the
closing price of the Infineon share on the second-to-last trading day of the month
preceding the allocation. The Infineon shares finally allocated are not subject to any
holding period.
Cost of share-based payment
The cost of share-based payment was €188 million in the 2025 fiscal year (2024:
€130 million).
144
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
23 Other financial commitments
In addition to provisions and liabilities, there were other financial commitments
that were not recognized in the Consolidated Statement of Financial Position. These
resulted, in particular, from legal risks (see note 24, p. 145 f.) and unconditional
purchase commitments, which are explained in more detail below.
Contracts already entered into for commenced or planned investments in property,
plant and equipment (purchase commitments) as of 30 September 2025 amounted
to €1,122 million (30 September 2024: €1,949 million). Commitments arising from orders
placed for investments in other intangible asset projects amounted to €52 million
as of 30 September 2025 (30 September 2024: €2 million).
Furthermore, Infineon has committed to invest €500 million in the European Semi-
conductor Manufacturing Company (ESMC) GmbH in Dresden (Germany), 70 percent
of whose shares are held by Taiwan Semiconductor Manufacturing Company Limited
(TSMC), Hsinchu (Taiwan). Infineon’s participation amounts to 10 percent. As of
30 September 2025, Infineon has paid €118 million into the ESMC as a capital
contribution.
In the course of its investing activities, Infineon also receives government grants
related to the construction and financing of certain of its manufacturing facilities.
Grants are also received for selected research and development projects and employee
development initiatives. Certain grants have been received contingent upon Infineon
complying with particular project-related requirements. From today’s perspective,
Infineon expects to comply with these requirements. Nevertheless, should such
requirements not be met, as of 30 September 2025, a maximum of €728 million
(30 September 2024: €444 million) of subsidies already received could be refundable.
Through certain customer and supplier contracts, Infineon may be obligated in the
normal course of business to indemnify or compensate its counterparties under
certain conditions for warranties, patent infringement or other matters such as the
non-fulfillment of agreed volumes. The maximum amount of potential future payments
under these types of agreements is not predictable with any degree of certainty since
the potential obligations are contingent on events that may or may not occur in the
future and depend on certain facts and circumstances specific to each agreement.
Infineon currently assumes that these types of agreements will not have a material
effect on its future financial condition, liquidity and results of operations.
24 Legal risks
Infineon is involved in various legal disputes and proceedings in connection with its
existing or previous business activities. These may relate, in particular, to products,
services, patents, export control and environmental issues and other matters.
Based on its current knowledge, Infineon does not believe that the ultimate resolution
of these pending legal disputes and proceedings will have a material adverse effect
on Infineon’s future financial condition, liquidity and results of operations. However,
future revisions to this assessment cannot be ruled out, and any reassessment of the
miscellaneous legal disputes and proceedings could have a material adverse effect
on the Group’s financial condition, liquidity and results of operations, particularly in
the period in which reassessment is made.
Furthermore, in connection with its existing or previous business operations, Infineon
is also exposed to numerous legal risks, which until now have not resulted in legal
disputes. These include risks related to product liability, environment, capital market,
anti-corruption, competition and antitrust legislation, as well as export control and
other compliance regulations. Claims could also be made against Infineon in connec-
tion with these matters in the event of breaches of law committed by individual
employees or third parties.
145
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
As part of an audit finding relating to the tax treatment of losses from the repurchase
of convertible bonds in the 2011, 2012 and 2014 fiscal years, there were contingent
liabilities of €63 million as of 30 September 2025 (2024: €63 million) for withholding
tax on capital gains to be paid in arrears plus interest. Suspension of enforcement
was granted as part of the ongoing appeal proceedings for 2011, 2012 and 2014.
Infineon expects with reasonable certainty that it will prevail in the appeal proceedings
or any potential legal action.
25 Transactions with related companies
and persons
Infineon has transactions in the normal course of business with joint ventures,
associates and other related companies (collectively “related companies”). The related
companies are disclosed in note 30, p. 169 ff. Related persons are persons in key
management positions, in particular members of the Management Board and the
Supervisory Board and their close relatives (collectively “related persons”).
Related companies
Infineon purchases certain raw materials and services from and sells certain products
and services to related companies.
Receivables and payables from and to related companies as of 30 September 2025
and 30 September 2024 consisted of the following:
€ in millions
30 September 2025
30 September 2024
Joint
ventures
Associates
Other
related
companies
Joint
ventures
Associates
Other
related
companies
Trade and other receivables
34
–
1
10
1
1
Financial receivables
–
–
3
–
–
2
Trade and other payables
17
–
1
13
–
1
Financial payables
–
–
–
–
–
–
The outstanding balances are unsecured and are settled in cash. No guarantees have
been granted or received.
Sales and service charges to and products and services received from related companies
in the 2025 and 2024 fiscal years consisted of the following:
€ in millions
2025
2024
Joint
ventures
Associates
Other
related
companies
Joint
ventures
Associates
Other
related
companies
Sales and service charges
67
2
2
107
12
2
Products and
services received
147
–
21
119
–
12
As of 30 September 2025, sales and services relationships with related companies
resulted in purchase commitments of €41 million (30 September 2024: €37 million).
146
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Related persons
Total remuneration of the Management Board and
Supervisory Board in accordance with IAS 24.17
The members of the Management Board and Supervisory Board active in the 2025
and 2024 fiscal years received the following remuneration for their activities in
accordance with IAS 24.17:
Change
€ in millions
2025
2024
absolute
in %
Expense for short-term benefits1
7
7
–
–
Expense for share-based payment
4
3
1
33
Expense from post-employment benefits
1
1
–
–
Expense for termination benefits 2
2
1
1
+++
Total remuneration of the Management Board
14
12
2
17
Total remuneration of the Supervisory Board 3
3
3
–
–
Total remuneration of the executive bodies
17
15
2
13
1 The expense comprises fixed remuneration (including fringe benefits) and the one-year variable remuneration (STI).
2 Dr. Rutger Wijburg left the Management Board of Infineon Technologies AG in the 2025 fiscal year. His employment contract will continue
as scheduled until 31 March 2026. Dr. Rutger Wijburg is entitled to all remuneration claims for this period.
3 Employee representatives on the Supervisory Board who are employed by Infineon also receive a salary for their activities as employees.
Total remuneration of the Management Board and Supervisory Board
pursuant to section 314, paragraph 1, no. 6 in conjunction with
section 315e, paragraph 1, HGB
The total remuneration of the Management Board members for their active service
pursuant to section 314, paragraph 1, no. 6 in conjunction with section 315e,
paragraph 1, HGB amounted to €12 million (2024: €11 million). This includes a
Long-Term Incentive in the form of a performance share plan (see note 22, p. 142 f.).
A total of 148,222 (virtual) performance shares (2024: 148,067) were provisionally
allocated to the Management Board members in the 2025 fiscal year. The fair value of
these provisionally allocated (virtual) performance shares amounted to €5 million
(2024: €4 million).
The total remuneration of the Supervisory Board members in the 2025 fiscal year
was €3 million (2024: €3 million).
Former Management Board members received payments of €7 million in the 2025
fiscal year (2024: €5 million).
As of 30 September 2025, pension obligations for former Management Board members
amounted to €60 million (30 September 2024: €65 million).
In the 2025 and 2024 fiscal years, there were no significant transactions between
Infineon and related persons that fell outside of the scope of the existing employment,
service or appointment terms, or the contractual arrangements for their remuneration.
Dr. Rutger Wijburg resigned from his position on the Management Board with effect
from 30 September 2025; his contract of employment will end as scheduled on
31 March 2026. The Supervisory Board appointed Alexander Gorski to succeed
Dr. Rutger Wijburg, with effect from 1 October 2025 until 30 September 2028.
With regard to the disclosures on the individual remuneration of the members of the
Management Board and Supervisory Board pursuant to section 162 of the German
Stock Corporation Act (AktG), reference is made to the Remuneration Report prepared
according to stock corporation law, which can be found under the following link:
www.infineon.com/remuneration-report
The references to the Remuneration Report were not audited as part of the audit
of the financial statements. The Remuneration Report was subjected to a separate
substantive audit by the auditor in accordance with IDW Auditing Standard 490.
This audit also includes the formal audit required by section 162, paragraph 3 of the
German Stock Corporation Act (AktG).
147
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
26 Supplemental cash flow information
Cash and cash equivalents reported as of 30 September 2025 and 30 September 2024
totaling €1,356 million and €1,806 million, respectively, included €108 million and
€221 million, respectively, which were subject to legal transfer restrictions and so were
not available for general use by Infineon. This amount represented cash and cash
equivalents of consolidated companies located in countries where the transfer of
cash is legally restricted, for example, Mainland China.
The reconciliation below shows changes in those financial liabilities and hedging
transactions for which payments received and made are shown under cash flows from
financing activities in the Consolidated Statement of Cash Flows.
€ in millions
Starting balance
Cash-effective
changes
Non-cash-effective changes
Carrying amount
Acquisitions
Currency effects
New leases
Other changes1
2025 fiscal year
Short-term and long-term financial debt
4,811
1,505
–
(82)
–
595
6,829
Related party financial payables
–
–
–
–
–
–
–
Current and non-current lease liabilities
357
(85)
–
(10)
160
(35)
387
Total
5,168
1,420
–
(92)
160
560
7,216
2024 fiscal year
Short-term and long-term financial debt
4,733
177
–
(103)
–
4
4,811
Related party financial payables
1
(1)
–
–
–
–
–
Current and non-current lease liabilities
381
(74)
4
(8)
70
(16)
357
Total
5,115
102
4
(111)
70
(12)
5,168
1 Includes €600 million in the 2025 fiscal year for the first tranche of the hybrid bond, which was terminated by Infineon according to the contract on 27 January 2025 and repaid on 28 March 2025 (see note 20,
p. 141).
148
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
27 Additional disclosures on financial instruments
Categories of financial instruments
The following tables present the carrying amounts and the fair values of financial
instruments by their respective classes and a breakdown by category of financial
instruments as of 30 September 2025 and 30 September 2024 according to IFRS 9:
€ in millions
Carrying amount
Categories of financial assets
Not assignable to any
IFRS 9 measurement
category
Fair value
At fair value through
profit or loss
At amortized cost
At fair value through other
comprehensive income
Designated hedging
instruments
(cash flow hedges)
As of 30 September 2025
Current financial assets
Cash and cash equivalents
1,356
793
563
–
–
1,356
Financial investments
746
744
2
–
–
746
Trade receivables
2,249
–
2,249
–
–
2,249
Other current financial assets
398
1
395
–
2
398
Non-current financial assets
Other non-current financial assets
329
137
74
118
–
329
Total
5,078
1,675
3,283
118
2
5,078
As of 30 September 2024
Current financial assets
Cash and cash equivalents
1,806
1,272
534
–
–
1,806
Financial investments
395
394
1
–
–
395
Trade receivables
2,250
–
2,250
–
–
2,250
Other current financial assets
450
14
434
–
2
450
Non-current financial assets
Other non-current financial assets
264
136
100
28
–
264
Total
5,165
1,816
3,319
28
2
5,165
149
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
€ in millions
Carrying amount
Categories of financial liabilities
Not assignable to any IFRS 9
measurement category
Fair value
At fair value through
profit or loss
At amortized cost
Designated hedging
instruments
(cash flow hedges)
Others
As of 30 September 2025
Current financial liabilities
Short-term financial debt and current portion of
long-term financial debt
1,047
–
1,047
–
–
1,046
Trade payables
2,011
–
2,011
–
–
2,011
Current lease liabilities
82
–
–
–
82
–
Other current financial liabilities
1,186
5
1,181
–
–
1,186
Non-current financial liabilities
Long-term financial debt
5,782
–
5,782
–
–
5,673
Non-current lease liabilities
305
–
–
–
305
–
Other non-current financial liabilities
756
–
756
–
–
756
Total
11,169
5
10,777
–
387
10,672
As of 30 September 2024
Current financial liabilities
Short-term financial debt and current portion of
long-term financial debt
500
–
500
–
–
495
Trade payables
1,990
–
1,990
–
–
1,990
Current lease liabilities
73
–
–
–
73
–
Other current financial liabilities
1,197
2
1,195
–
–
1,197
Non-current financial liabilities
Long-term financial debt
4,311
–
4,311
–
–
4,144
Non-current lease liabilities
284
–
–
–
284
–
Other non-current financial liabilities
702
–
702
–
–
702
Total
9,057
2
8,698
–
357
8,528
150
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Within financial assets measured at amortized cost, financial assets with a carrying
amount of €3 million (previous year: €11 million) were included as of 30 September 2025,
which Infineon has pledged mainly as collateral for rental liabilities.
Infineon recognizes its equity investment in ESMC (see note 23, p. 145), which plays
an important role for Infineon in the geographical diversification of its supply chains,
at fair value through other comprehensive income.
In the 2025 and 2024 fiscal years, there were no reclassifications between the categories
of financial instruments.
Disclosures about fair value
Financial instruments at fair value
Financial instruments measured at fair value are allocated to the following measure-
ment levels in accordance with IFRS 13. The allocation to the different levels is based
on the market proximity of the valuation parameters used in the determination of the
fair values:
– Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities,
– Level 2: valuation parameters whose prices are not considered in level 1, but
which can be observed either directly or indirectly for the asset or liability,
– Level 3: valuation parameters for assets and liabilities that are not based on
observable market data.
The allocation to the levels as of 30 September 2025 and 30 September 2024 was
as follows:
€ in millions
Fair value
Fair value by category
Level 1
Level 2
Level 3
30 September 2025
Current financial assets
Cash and cash equivalents
793
793
–
–
Financial investments
744
744
–
–
Other current financial assets
3
–
3
–
Non-current financial assets
Other non-current financial assets
255
135
–
120
Total
1,795
1,672
3
120
Current financial liabilities
Other current financial liabilities
5
–
5
–
Total
5
–
5
–
30 September 2024
Current financial assets
Cash and cash equivalents
1,272
1,272
–
–
Financial investments
394
394
–
–
Other current financial assets
16
–
16
–
Non-current financial assets
Other non-current financial assets
164
127
–
37
Total
1,846
1,793
16
37
Current financial liabilities
Other current financial liabilities
2
–
2
–
Total
2
–
2
–
Cash equivalents and financial investments included investments in money market
funds and investment funds (level 1).
151
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Other current assets and other current liabilities contained derivative financial instru-
ments (including cash flow hedges). Their fair value was determined by discounting
future cash flows according to the discounted cash flow method. Where possible,
valuation parameters observed on the reporting date in the relevant markets (such
as currency rates, interest rates, or commodity prices) drawn from reliable external
market data providers were used (level 2). Where fair values are determined on the
basis of non-observable factors, these are assigned to level 3.
The determination of the fair values of the deal contingent forward and deal contingent
option designated as cash flow hedges (see “Derivative financial instruments and
hedging activities”) were determined up to settlement on the basis of factors observable
in markets such as forward prices, interest rate curves and volatilities. In addition,
the assumption about the date of completion of the acquisition was taken into account
as a non-observable factor (level 3).
Other non-current assets included equity investments and investments in funds.
Where these are traded on an active market, the fair value was based on the actual
market price (level 1). For equity investments where no market price from an active
market is available, the fair value was determined by considering existing contractual
arrangements based on externally observable dividend policy (level 3). For an
investment currently in the ramp-up phase, the acquisition cost was used as the best
possible estimate of fair value.
The following table shows the reconciliation of financial instruments classified as
level 3 (before tax):
€ in millions
Deal contingent
forward
Deal contingent
option
Equity
investments
1 October 2023
(1)
8
10
Acquisitions (including additions)
–
–
29
Sales (including disposals)
2
(7)
–
Unrealized losses recognized in profit or loss1
–
2
(2)
Losses in equity
(1)
(3)
–
30 September 2024
–
–
37
Acquisitions (including additions)
–
–
90
Sales (including disposals)
(32)
(20)
(12)
Realized gains and losses recognized in profit or loss1
–
4
5
Amount reclassified to the cost of non-financial items
32
16
–
30 September 2025
–
–
120
1 This relates to gains recognized in financial income or losses recognized in financial expenses.
A hypothetical change in the key non-observable market valuation parameters
at the balance sheet date of ± 10 percent or one month would have resulted
in a theoretical reduction in fair values of €0 million or an increase of €0 million
(previous year: both €0 million).
152
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Financial instruments at amortized cost
For assets allocated to the category “At amortized cost”, it is assumed that the fair
values approximately correspond to their carrying amounts. The same assumption
applies to liabilities resulting from trade payables and other current financial liabilities
categorized as “At amortized cost”.
The fair value of current and non-current financial debt that is measured at amortized
cost is based either on quoted prices as of the reporting date (level 1) or is determined
based on expected future cash flows discounted using a current market interest rate
(level 2).
The allocation to the levels of current and non-current financial debt measured at
amortized cost as of 30 September 2025 and 30 September 2024 was as follows:
€ in millions
Fair value
Fair value by category
Level 1
Level 2
Level 3
30 September 2025
Short-term financial debt and current portion
of long-term financial debt
1,047
744
303
–
Long-term financial debt
5,673
2,576
3,097
–
Total
6,720
3,320
3,400
–
30 September 2024
Short-term financial debt and current portion
of long-term financial debt
495
495
–
–
Long-term financial debt
4,144
2,547
1,597
–
Total
4,639
3,042
1,597
–
Gains and losses in relation to financial instruments
The net gain or loss on financial instruments (including interest income and expense)
in the Consolidated Statement of Profit or Loss amounted to the following as of
30 September 2025 and 30 September 2024:
Change
€ in millions
2025
2024
absolute
in %
Financial assets measured at amortized cost
(66)
(55)
(11)
20
therein interest income
18
20
(2)
(10)
therein impairment losses
(3)
(2)
(1)
50
therein currency effects
(81)
(73)
(8)
11
therein other financial income (expenses)
–
–
–
–
Financial assets measured at fair value
through profit and loss
80
34
46
+++
Financial liabilities measured at amortized cost
(131)
(45)
(86)
–––
therein interest expenses
(185)
(157)
(28)
18
therein currency effects
69
110
(41)
(37)
therein other financial income (expenses)
(15)
2
(17)
–––
Financial assets or liabilities measured
at fair value through profit and loss –
derivative financial instruments
not designated as a hedging relationship
2
22
(20)
(91)
therein currency effects
2
22
(20)
(91)
Total
(115)
(44)
(71)
–––
Interest expense on financial liabilities measured at amortized cost mainly included
interest on financial debt and amortization effects from directly attributable
transaction costs using the effective interest method.
153
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Infineon does not net financial instruments. It conducts derivative transactions
according to the global netting agreement (Master Agreement) of the International
Swaps and Derivatives Association and other comparable national framework agree-
ments. Under the terms of these agreements, any netting arising from the occurrence
of certain future events would have had no material effect on the balance sheet
presentation of these financial instruments.
Derivative financial instruments and hedging activities
Infineon holds derivative financial instruments exclusively for hedging purposes. This
includes the use of forward exchange contracts, interest rate swaps and commodity
swaps. The objective is to reduce the impact of fluctuations in exchange rates, interest
rates and commodity prices on future net cash flows.
Derivative financial instruments not designated as a hedging relationship
The nominal values and fair values of Infineon’s derivative instruments as of 30 Septem-
ber 2025 and 30 September 2024 that were not designated in a hedging relationship
were as follows:
€ in millions
30 September 2025
30 September 2024
Nominal
value
Fair value
Nominal
value
Fair value
Forward exchange contracts sold
520
(1)
559
8
Forward exchange contracts purchased
325
(4)
236
4
Total
(5)
12
Derivative financial instruments designated as a hedging relationship
As of 30 September 2025 and 30 September 2024, Infineon held the following
instruments, which were designated as cash flow hedges and were used to hedge
against changes in foreign exchange rates and commodity prices:
30 Septem-
ber 2025
Short-term
30 Septem-
ber 2024
Short-term
Hedging of other risks
Commodity swaps (gold)
Nominal value (€ in millions)
17
18
Average price (U.S. dollar/ounce)
3,492
2,473
In order to hedge the foreign currency risks arising from the purchase price obligation
for the acquisition of Marvell’s Automotive Ethernet business (see note 3, p. 112 f.),
two contingent (transaction-dependent) euro/U.S. dollar foreign currency forward
contracts (“deal contingent forwards”) with a total nominal amount of €500 million
and one contingent (transaction-dependent) euro/U.S. dollar foreign currency option
transaction (“deal contingent option”) with a nominal amount of €500 million
were concluded on 7 April 2025 and recognized as a cash flow hedge. In addition,
for the aforementioned hedging purpose, U.S. dollar cash balances (US$140 million)
generated from operating activities in the 2025 fiscal year were also designated as
a cash flow hedge.
154
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Upon completion of the acquisition of Marvell’s Automotive Ethernet business on
14 August 2025, the deal contingent forwards and the deal contingent option became
due. Amounts from these hedging relationships and from the accumulated U.S. dollar
cash balances totaling minus €48 million, which were previously included in other
reserves, were taken into account in full when measuring the consideration transferred
(see note 3, p. 112 f.). This amount includes the amount of minus €16 million from
the option premium of €20 million paid in connection with the deal contingent option.
Hedge ineffectiveness of €4 million was recognized in the Consolidated Statement
of Profit or Loss for these hedging relationships.
To hedge the price risks of highly probable gold purchases in the 2026 fiscal year,
Infineon entered into swaps, which are designated as cash flow hedges. The designated
hedged items and the hedging instruments were subject to the same risk. The economic
connection was proven by means of a regression analysis. Due to the execution of
only highly effective hedging transactions, Infineon assumes that significant ineffective
elements will normally not be generated. Infineon applies a hedging ratio of 1:1.
Ineffectiveness can be caused mainly by the impact of the credit risks arising from the
counterparty and Infineon on the fair value of the swap that is not reflected in the
change in the fair value of hedged cash flows attributable to changes in raw material
prices. As in the previous year, no hedge ineffectiveness was recorded in the Consoli-
dated Statement of Profit or Loss for these hedging relationships. As in the previous
year, no gains or losses were transferred from other reserves to profit or loss as a result
of cash flow hedges for future raw material purchases being canceled following the
decision that the occurrence of the hedged transaction had become unlikely.
Effects from derivative financial instruments
designated as a hedging relationship
The amounts relating to positions that were designated as hedged items as of
30 September 2025 and 30 September 2024 are shown in the table below.
€ in millions
Change in the value
of the hedged item
used to determine
ineffectiveness
Hedge reserve
(before taxes)
30 September 2025
Hedging of commodity price risks
(2)
2
Total
2
30 September 2024
Hedging of commodity price risks
(2)
2
Total
2
In the 2025 and 2024 fiscal years, no balances remained in other comprehensive
income for which hedge accounting was no longer applied.
155
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
The relevant amounts of the derivative financial instruments designated as hedging
instruments (before taxes) as of 30 September 2025 and 30 September 2024 were
as follows:
€ in millions
Carrying amount
Changes in fair value
for the measurement
of ineffectiveness in
the reporting period
Changes in fair value
of the hedging instrument
recognized in other
comprehensive income
Amount reclassified
from the hedge reserve
to the cost of
non-financial assets
Amount reclassified
from the cost of hedging
reserve to the cost
of non-financial assets
Line item of the Statement
of Financial Position
or the Statement of
Profit or Loss affected
by the reclassification
30 September 2025
Other current financial assets
Hedging of commodity price risks
2
2
4
(4)
–
Inventories
Other current financial liabilities
Hedging of foreign exchange risk1
Deal contingent option
–
–
–
–
16
Goodwill
Deal contingent forward
–
–
–
32
–
Goodwill
Total
2
4
28
16
30 September 2024
Other current financial assets
Hedging of foreign exchange risk 2
Deal contingent option
–
–
–
2
–
Goodwill
Hedging of commodity price risks
2
2
2
(2)
–
Inventories
Other current financial liabilities
Hedging of foreign exchange risk 2
Deal contingent forward
–
–
–
8
–
Goodwill
Total
2
2
8
–
1 Financial instruments relate to the hedging of foreign currency risks arising from the purchase price obligation for the acquisition of Marvell’s Automotive Ethernet business in the 2025 fiscal year. With the completion of the acquisition on 14 August 2025,
the deal contingent forward and the deal contingent option were settled.
2 Financial instruments relate to hedging foreign currency risks arising from the purchase price obligation for the acquisition of GaN Systems in the 2024 fiscal year.
156
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
The following table shows the reconciliation for the reserve for cash flow hedges
(before taxes) by risk category:
€ in millions
Hedging of
foreign
exchange
risks
Hedging of
interest risks
Hedging of
commodity
price risks
Total
1 October 2023
(6)
(34)
(1)
(41)
Change in fair value
(4)
–
5
1
Amount reclassified to
Statement of Profit or Loss
–
7
–
7
Amount reclassified to the
cost of non-financial items
10
–
(2)
8
30 September 2024
–
(27)
2
(25)
Change in fair value
(48)
–
4
(44)
Amount reclassified to
Statement of Profit or Loss
–
7
–
7
Amount reclassified to the
cost of non-financial items
48
–
(4)
44
30 September 2025
–
(20)
2
(18)
28 Financial risk management
Infineon’s activities are exposed to a variety of financial risks: market risk (including
foreign exchange risk, interest rate risk and price risk), credit risk, financing and liquidity
risk. Infineon’s financial risk management seeks to minimize potential adverse effects
on its results of operations and liquidity. Infineon uses derivative financial instruments
to hedge certain risks to which it is exposed. Financial risk management is centrally
undertaken by the Group Finance & Treasury (FT) department in accordance with policies
approved by the Chief Financial Officer. The FT department identifies, evaluates and
hedges financial risks in close cooperation with the operating units. The FT department’s
policies contain principles for overall risk management as well as guidance covering
specific areas such as foreign exchange risk, interest rate risk, credit risk, the use
of derivative and non-derivative financial instruments, and the investment of excess
liquidity.
Developments in cyclical market risks and segment risks, as well as geopolitical risks
are dynamic and can have direct and indirect effects on financial risks. The course of
events and their impact on Infineon’s risk position are continually monitored and are
taken into account in the methods, models and processes used to control financial
risks. Possible longer-term effects on Infineon and the associated volatility in the
financial markets cannot currently be estimated more precisely.
Market risk
Market risk is defined as the risk of losses resulting from adverse changes in the
market prices of financial instruments, including those related to foreign exchange
rates, interest rates and other price risks.
Infineon is exposed to various market risks in the ordinary course of business, primarily
resulting from changes in foreign exchange rates and interest rates. Infineon enters
into a range of derivative financial transactions with various counterparties to limit
such risks. Derivative instruments are used only for hedging purposes and not for
trading or speculative purposes.
Foreign exchange risk
Foreign exchange risk within the meaning of IFRS 7 is the risk arising from changes
to foreign exchange rates. Accordingly, foreign exchange risks are associated
with financial instruments that are denominated in a foreign currency that does
not correspond to the functional currency, and the foreign currency represents the
relevant risk variable. Risks arising from the translation into Infineon’s reporting
currency are not risks within the meaning of IFRS 7.
157
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Although Infineon prepares the Consolidated Financial Statements in euros, a varying
but significant portion of its revenue, cost of goods sold, research and development
and product distribution costs is denominated in currencies other than the euro,
primarily the U.S. dollar. Fluctuations in the exchange rates of these currencies compared
to the euro had an effect on the results of Infineon in the 2025 and 2024 fiscal years.
The Management Board has established policies that require Infineon’s individual
legal entities to manage the foreign exchange risk with respect to their functional
currency. Group entities prepare a monthly rolling cash flow forecast by currency
in order to determine foreign exchange risks. The net foreign exchange positions
determined in these forecasts are required to be hedged, usually by entering into
internal hedging contracts. Infineon’s policy with respect to limiting short-term foreign
currency exposure is to hedge at least 75 percent of its estimated net cash flow for the
following two months, at least 50 percent of its estimated net cash flow for the third
month and, depending on the nature of the underlying transactions, if necessary
a certain additional portion for the periods thereafter. Part of the foreign currency
risk cannot be mitigated due to differences between actual and forecasted amounts.
Infineon calculates this remaining risk based on net cash flows while considering items
in the Consolidated Statement of Financial Position, actual orders received or placed
and all other planned cash receipts and payments.
In order to hedge the foreign currency risks arising from the purchase price obligation
arising from the acquisition of Marvell’s Automotive Ethernet business (see note 3,
p. 112 f.), two deal contingent forwards and a deal contingent option were concluded
by Infineon in the 2025 fiscal year and were accounted for as cash flow hedges.
Upon completion of the acquisition of Marvell’s Automotive Ethernet business on
14 August 2025, the deal contingent forwards and the deal contingent option were
settled (see note 27, p. 149 ff.).
For the net result related to foreign currency hedging transactions and foreign currency
transactions included within profit (loss) for the period, see note 27. p. 149 ff.
Foreign exchange risk at Infineon arises predominantly from positions taken in
the main foreign currencies. The following table shows the net risk positions as of
30 September 2025 and 30 September 2024:
€ in millions
Euro/
U.S. dollar
Euro/
Chinese yuan
renminbi
Euro/
Japanese
yen
Euro/
Singapore
dollar
Euro/
Malaysian
ringgit
Financial position exposure
254
(49)
(64)
(38)
(27)
Forward exchange contracts
(485)
57
48
39
87
Net risk as of 30 September 2025
(231)
8
(16)
1
60
Financial position exposure
226
19
(97)
(46)
(51)
Forward exchange contracts
(491)
–
15
43
105
Net risk as of 30 September 2024
(265)
19
(82)
(3)
54
The following table shows the effects on profit or loss for the 2025 and 2024 fiscal
years of a ± 10 percent shift in exchange rates. The assumed exchange rate changes
relate only to monetary items within the meaning of IFRS 7 that are not denominated
in Infineon’s functional currency.
€ in millions
Statement of Profit or Loss
plus 10%
minus 10%
30 September 2025
16
(20)
Euro/U.S. dollar
21
(26)
Euro/Chinese yuan renminbi
(1)
1
Euro/Japanese yen
1
(2)
Euro/Malaysian ringgit
(5)
7
30 September 2024
24
(30)
Euro/U.S. dollar
24
(29)
Euro/Japanese yen
7
(9)
Euro/Chinese yuan renminbi
(2)
2
Euro/Malaysian ringgit
(5)
6
158
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Interest rate risk
In accordance with IFRS 7, interest rate risk is defined as the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in
interest rates.
Infineon is exposed to interest rate risk through its financial investment instruments
and financial debt resulting from bond issuances and debt financing. Due to the
cyclical nature of its core business and the need to maintain high operational flexibility,
Infineon holds a high level of liquid financial assets that are invested in short-term
fixed-interest instruments. These financial assets are generally invested with a contract
duration of between one day and twelve months maturity at interest rates achievable
in the short term. Infineon’s interest rate risk position in accordance with IFRS 7 is
compensated to a certain extent by the use of fixed-interest financial debt.
To reduce the net remaining risks caused by changes in interest rates, Infineon is able
to make use of interest rate derivatives in order to align the fixed interest periods of
assets and liabilities.
IFRS 7 requires a sensitivity analysis showing the effect of possible changes in market
interest rates on profit or loss. Infineon prepares this using the iteration method.
Changes in market interest rates affect Infineon’s interest income and expenses from
variable-yield monetary items within the meaning of IFRS 7.
The following table shows the effects on profit or loss for the 2025 and 2024 fiscal years
of a ± 100 basis points shift in market interest rates:
€ in millions
Nominal
value
Statement of Profit or Loss
plus 100
basis points
minus 100
basis points
30 September 2025
228
2
(2)
Variable-interest financial assets
2,083
21
(21)
Variable-interest financial liabilities
(1,855)
(19)
19
30 September 2024
2,157
22
(22)
Variable-interest financial assets
2,157
22
(22)
Other price risk
According to IFRS 7, other price risk is defined as the risk that the fair value or future
cash flows of a financial instrument could fluctuate because of changes in market prices
(other than those arising from interest rate risk or exchange rate risk), irrespective
of whether those changes are caused by factors specific to the individual financial
instrument or its issuer, or by factors affecting all similar financial instruments traded
in the market.
Additionally, Infineon is exposed to price risks with respect to raw materials upon
which it is dependent. Infineon seeks to minimize these risks through its procure-
ment policy (including the use of multiple sources, where possible) and its operating
procedures. In line with these measures, Infineon concluded additional financial
derivative contracts for certain commodity supplies (gold) for the following fiscal year
in order to mitigate the remaining risk arising from the fluctuation of commodity
prices (see note 27, p. 154 ff.).
159
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
The following table presents the effect on equity of a change in the relevant market
prices by ± 10 percent as of 30 September 2025 and 30 September 2024:
€ in millions
Nominal
value
Equity
plus 10%
minus 10%
30 September 2025
Commodity swaps
17
2
(2)
30 September 2024
Commodity swaps
18
2
(2)
Credit risk
Credit risk arises when a customer or other counterparty of a financial instrument
fails to discharge its contractual obligations. Infineon is exposed to this risk as a
consequence of its ongoing operations, its financial investments and certain financing
activities. Infineon’s credit risk arises primarily from cash and cash equivalents, financial
investments, trade receivables and derivative financial instruments. Excluding the
impact of any collateral received, in the case of financial investments, cash and cash
equivalents, trade receivables, and financial assets measured at amortized cost, the
carrying amount corresponds to the maximum credit risk.
Investments with banks
Foreign exchange hedging contracts, as well as the investment of liquid assets in cash
equivalents and financial investments, are entered into with major financial institutions
worldwide that have high credit ratings. Infineon assesses the creditworthiness of
banks using a methodology that establishes investment limits for individual banks
that are updated on a daily basis according to current external ratings and credit
default swap premiums. Possible breaches of stipulated investment thresholds
result in immediate internal notification and the requirement to reduce the risk.
This methodology is also used to identify a significant increase in credit risk in the
context of the recognition of expected credit losses within the meaning of IFRS 9 at
the balance sheet date.
Infineon applies the general impairment model in accordance with IFRS 9 for cash and
cash equivalents as well as financial investments. Since Infineon invests exclusively
in high-quality financial assets from issuers with an investment grade rating in order
to minimize default risk, Infineon assumes that its financial assets carry low credit risk
arising from the creditworthiness of its contract parties, so that any impairment loss
recorded at first-time recognition is limited to the twelve-month expected credit losses.
Infineon considers low credit risk to be an internal credit rating “Holding Quality 1”.
A change in the internal rating from “Holding Quality 1” to “Holding Quality 0” indicates
a significant increase in credit risk. The impairment is calculated using a weighted-
probability method. This impairment is calculated as a measure of the probability
of default based on the exposure at the balance sheet date, the loss ratio for that
exposure, and the credit default swap spread.
The following table provides information on the credit risk for cash and cash
equivalents measured at amortized cost, as well as financial investments as of
30 September 2025 and 30 September 2024:
€ in millions
At amortized cost
Infineon rating
External rating
Basis for the
determination of
the loss allowance
Expected 12-month
credit loss
Expected lifetime
credit loss
non-credit-impaired
30 September 2025
Holding Quality 1
AA– to BBB+
565
–
–
Holding Quality 0
–
–
–
–
Total
565
–
–
30 September 2024
Holding Quality 1
AA to BBB
535
–
–
Holding Quality 0
–
–
–
–
Total
535
–
–
160
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
As in the previous year, Infineon had no financial assets that were overdue or impaired
as of 30 September 2025. There was no reclassification between the impairment
levels in the 2025 and 2024 fiscal years.
Infineon has continued to keep a low level of cash investments with banks in the 2025
fiscal year. The maximum risk position in the event of the default of a single financial
institution amounted to €44 million as of 30 September 2025 (30 September 2024:
€33 million), assuming no deposit insurance scheme is in place. In addition, to spread
the risk of investment, investments were made in money market funds with the best
rating and in money market investment funds. Infineon also held derivative financial
instruments with a positive fair value of €3 million as of 30 September 2025 (30 Sep-
tember 2024: €16 million).
Trade receivables
Infineon manages the credit risk with respect to trade receivables through a com-
prehensive credit evaluation for all major customers, the use of credit limits and
continual monitoring procedures. New customers are evaluated for creditworthiness
in accordance with Infineon guidelines. Credit limits are also in place per customer,
and creditworthiness and credit limits are constantly monitored. A further measure
taken to reduce credit risk is the use of reservation of title clauses. However, despite
continuous monitoring, Infineon cannot fully exclude the possibility of a loss arising
from the default of one of its contract parties.
Infineon assigns trade receivables to different risk classes based on external ratings,
the analysis of customer balance sheet figures, default probabilities (credit default
swaps), customer payment behavior and country risks. The simplified method is used
to determine the expected losses from trade receivables. The expected losses over
the entire term of the trade receivables are determined. The allowance is calculated
for each customer using a weighted-probability method. In calculating the expected
credit losses, for each customer, Infineon takes into account a forward-looking
probability of default provided by a credit rating agency. Individual allowances are
recorded based on case-by-case facts or other risk indicators.
The following table provides information about the credit risk position for trade
receivables from third parties as of 30 September 2025 and 30 September 2024:
€ in millions
At amortized cost
Infineon rating
Internal risk class
Basis for the determination
of the loss allowance
Loss allowance
30 September 2025
30 September 2024
1
low risk
674
640
–
2
average risk
384
408
–
3
above-average risk
655
647
–
4
increased risk
313
495
(1)
5
high risk
184
40
(1)
–
individual
8
5
(8)
–
others
21
11
–
Total
2,239
2,246
(10)
Expected credit losses of stage 2 on trade receivables (see note 10, p. 122)
amounted to €2 million for all risk classes as of 30 September 2025 (30 September
2024: €3 million). Expected credit losses of stage 3 on trade receivables (no rating)
amounted to €8 million as of 30 September 2025 (30 September 2024: €5 million).
Developments in cyclical market risks and segment risks, as well as geopolitical risks,
are dynamic, so it cannot be ruled out that the actual credit losses deviate signifi-
cantly from the expected credit losses recognized based on current estimates and
assumptions or that the affected estimates and assumptions will have to be adjusted
in future periods and this could have a significant impact on Infineon’s expected
credit losses.
161
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Financing and liquidity risk
Financing and liquidity risk is the risk that an entity will encounter difficulties in
meeting obligations associated with financial liabilities.
Liquidity risk could arise from a potential inability of Infineon to meet maturing
financial obligations. Infineon’s liquidity management provides that sufficient levels
of cash and other liquid assets are available and ensures the availability of funding
through adequate levels of committed credit facilities.
The following table discloses the maturity profile for non-derivative financial liabilities
and a cash flow analysis for derivative financial instruments with negative fair values.
The table shows the undiscounted contractually agreed cash flows that result from
the respective financial liability. Cash flows are recognized at the date when Infineon
becomes a contractual partner to the financial instrument. Amounts in foreign currencies
were translated using the closing rate at the reporting date. The cash outflows of
financial liabilities that can be repaid at any time are assigned to the period in which
the earliest redemption is possible. Other payments are recognized according to
their contractual due date.
€ in millions
Due in the fiscal year
Total
2026
2027
2028
2029
2030
Beyond 2030
30 September 2025
Non-derivative financial liabilities
11,911
4,466
3,130
531
1,326
1,058
1,400
Derivative financial liabilities
Cash outflow
409
409
–
–
–
–
–
Cash inflow 1
(215)
(215)
–
–
–
–
–
Total
12,105
4,660
3,130
531
1,326
1,058
1,400
Total
2025
2026
2027
2028
2029
Beyond 2029
30 September 2024
Non-derivative financial liabilities
9,753
3,868
1,303
1,146
475
1,299
1,662
Derivative financial liabilities
Cash outflow
62
62
–
–
–
–
–
Cash inflow 1
(19)
(19)
–
–
–
–
–
Total
9,796
3,911
1,303
1,146
475
1,299
1,662
1 Cash inflows from derivative financial liabilities that arise upon settlement of the instrument.
Future cash flows from derivative financial instruments (see note 27,
p. 154 ff.) may
differ from the amounts shown in the table, since exchange rates or relevant factors
are subject to change.
162
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Further information
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
29 Segment reporting
Identification of segments
The basis for identifying the reporting segments is the differences between the
products and applications. In the 2025 fiscal year, Infineon’s business was structured
into the operating segments Automotive, Green Industrial Power, Power & Sensor
Systems and Connected Secure Systems. In addition, Infineon differentiates Other
Operating Segments as well as Corporate and Eliminations.
Automotive
The Automotive segment designs, develops, manufactures and markets semicon-
ductor products for automotive applications. These include powertrain and energy
management, connectivity and infotainment, body and comfort electronics, safety
and data security. The product portfolio ranges from analog/mixed signal components
and microcontrollers to software solutions, storage systems for specific applications,
and Si, SiC and GaN power semiconductors complemented by sensors from the
Power & Sensor Systems segment.
Green Industrial Power
The Green Industrial Power segment enables the intelligent management and efficient
conversion of electrical energy across the entire value chain, comprising generation,
transmission, storage and use. The product portfolio comprises power transistors
and modules based on Si and SiC.
Power & Sensor Systems
The Power & Sensor Systems segment encompasses a wide selection of power semi-
conductors and their control systems. We are drawing on the next generation of new,
innovative solutions based on Si, SiC and GaN products in the areas of data centers
(especially for artificial intelligence), robots, power supplies and adapters, 5G and
renewable energy (primarily for roof-top solar systems). Our product portfolio for
power supplies comprises analog/mixed-signal components such as control ICs,
driver stages and power transistors.
Connected Secure Systems
The Connected Secure Systems segment supplies comprehensive systems for a
secure, connected world based on reliable, game-changing microcontrollers and
wireless connectivity and security solutions. In particular, we offer microcontroller
solutions, Wi-Fi, Bluetooth, UWB (ultra wideband) and NFC (near-field communication)
solutions, and combined connectivity solutions (known as combo chips), along with
hardware-based security technologies and an efficient software environment for the
programming and configuration of the microcontrollers and connectivity components
that cover many application areas. These include devices for IoT applications, connected
home appliances and smart home appliances, IT equipment, consumer electronics,
cloud security and connected vehicles, as well as credit and debit cards, electronic
passports and national identity cards. They also include microcontrollers focusing on
machine learning, such as those for Edge AI applications.
Change in segment structure since 1 January 2025
On 1 January 2025, the “Sense & Control” business line, which was previously
allocated to the Automotive segment, was transferred to the Power & Sensor Systems
segment. The figures for the 2025 fiscal year reflect the transfer since 1 October 2024.
The comparative figures for the previous year have been adjusted accordingly.
Other Operating Segments
Other Operating Segments comprise the remaining activities of divested businesses
and other business activities.
163
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Corporate and Eliminations
The elimination of intragroup revenue and profits/losses to the extent that these
arise between the segments is presented in Corporate and Eliminations.
Similarly, certain items are included in Corporate and Eliminations that are not
allocated to the other segments. These include certain corporate headquarters costs
and selected topics that are not allocated to the segments since they arise from cor-
porate decisions and are not within the direct control of segment management.
Furthermore, raw materials and supplies are mostly not under the control or respon-
sibility of the operating segment management and are therefore mostly allocated
to corporate functions. Work in progress and finished goods are almost entirely
allocated to the operating segments.
Chief Operating Decision Maker, definition of the Segment Result and
allocation of assets and liabilities to the individual segments
The Management Board, as the joint Chief Operating Decision Maker, decides how
resources are allocated to the segments.
Based on revenue and the Segment Result, the Management Board assesses
performance and defines operating targets and budgets for the segments.
The Segment Result is defined as operating profit excluding specific net impairments
and impairment reversals, the impact on earnings of restructuring and closures,
share-based payment, acquisition-related depreciation/amortization and other
expenses, the impact on earnings of sales of businesses or interests in subsidiaries,
and other income (expenses).
Decisions relating to financing and the investment of cash funds are taken at
a Group level and not at a segment level. For this reason, neither financial income
nor financial expense (including interest income and expense) is allocated internally
to the segments.
Neither assets, liabilities nor cash flows per segment is reported to the Management
Board on a regular basis, nor is segment performance assessed on this basis.
The exception to this approach is certain inventory information which is regularly
analyzed at segment level. Infineon also allocates depreciation and amortization to
the operating segments based on production volume and products manufactured
using standard costs.
164
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Segment information
€ in millions
Total
Product categories1
Power (Discretes & Modules)
Control & Connectivity
Analog & Sensors
2025
2024
2025
2024
2025
2024
2025
2024
Revenue from contracts with customers
Automotive
7,402
7,716
1,773
2,081
3,343
3,171
2,286
2,464
Green Industrial Power
1,631
1,934
1,548
1,842
–
–
83
92
Power & Sensor Systems
4,208
3,795
1,621
1,695
242
202
2,345
1,898
Connected Secure Systems
1,418
1,506
–
–
1,418
1,506
–
–
Subtotal
14,659
14,951
4,942
5,618
5,003
4,879
4,714
4,454
Other Operating Segments
3
4
Corporate and Eliminations
–
–
Total
14,662
14,955
Automotive
Green Industrial Power
Power & Sensor Systems
Connected Secure Systems
€ in millions
2025
2024
2025
2024
2025
2024
2025
2024
Selected segment data
Revenue
7,402
7,716
1,631
1,934
4,208
3,795
1,418
1,506
Cost of goods sold
(4,474)
(4,399)
(1,081)
(1,188)
(2,371)
(2,175)
(680)
(642)
Research and development expenses
(799)
(761)
(174)
(149)
(795)
(718)
(382)
(466)
Selling, general and administrative expenses
(585)
(537)
(172)
(177)
(402)
(421)
(197)
(210)
2025
2024
Change
€ in millions
absolute
in %
Segment Result
Automotive
1,529
2,021
(492)
(24)
Green Industrial Power
201
418
(217)
(52)
Power & Sensor Systems
683
482
201
42
Connected Secure Systems
155
182
(27)
(15)
Other Operating Segments
(1)
–
(1)
–––
Corporate and Eliminations
(7)
2
(9)
–––
Total
2,560
3,105
(545)
(18)
1 The product categories have been adjusted to harmonize with other reporting. The previous year’s figures have been adjusted accordingly.
165
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
There were limited levels of trading relationships between the operating segments
during the 2025 and 2024 fiscal years. Costs are generally recharged without impact
on profit or loss.
The following table provides the reconciliation of Segment Result to profit (loss) from
continuing operations before income taxes:
Change
€ in millions
2025
2024
absolute
in %
Segment Result
2,560
3,105
(545)
(18)
Plus/minus:
Specific impairment reversals (impairments)
(249)
(103)
(146)
–––
Gains (losses) from restructuring and closures
(141)
(237)
96
(41)
Share-based payment
(188)
(130)
(58)
45
Acquisition-related depreciation/
amortization and other expenses
(408)
(411)
3
(1)
Gains (losses) on sales of businesses,
or interests in subsidiaries
6
(5)
11
+++
Other income and expenses
(65)
(29)
(36)
–––
Operating profit
1,515
2,190
(675)
(31)
Financial income
81
119
(38)
(32)
Financial expenses
(231)
(162)
(69)
43
Share of profit (loss) of joint ventures
and associates accounted for using
the equity method
10
11
(1)
(9)
Profit (loss) from continuing operations
before income taxes
1,375
2,158
(783)
(36)
Of the €408 million (2024: €411 million) “Acquisition-related depreciation/amortization
and other expenses” incurred in the 2025 fiscal year, €267 million (2024: €261 million)
was attributable to cost of goods sold, €5 million (2024: €12 million) to research and
development expenses, €132 million (2024: €142 million) to selling, general and
administrative expenses and €4 million (2024: income €4 million) to the balance of
other operating income and expense.
2025
2024
Change
€ in millions
absolute
in %
Depreciation and amortization per segment
Automotive
754
635
119
19
Green Industrial Power
219
258
(39)
(15)
Power & Sensor Systems
471
460
11
2
Connected Secure Systems
96
97
(1)
(1)
Other Operating Segments
–
–
–
–
Depreciation and amortization
allocated to the segments
1,540
1,450
90
6
Depreciation and amortization
not allocated to the segments
377
415
(38)
(9)
Total
1,917
1,865
52
3
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Inventories
Automotive
2,016
2,036
(20)
(1)
Green Industrial Power
348
290
58
20
Power & Sensor Systems
1,005
909
96
11
Connected Secure Systems
322
344
(22)
(6)
Other Operating Segments
–
–
–
–
Corporate and Eliminations
450
411
39
9
Total
4,141
3,990
151
4
Impairment losses on assets in the 2025 fiscal year amounted to €21 million (2024:
€0 million) in the Automotive segment , €2 million (2024: €0 million) in the Power &
Sensor Systems segment, €1 million (2024: €0 million) in the Green Industrial Power
segment, €0 million (2024: €5 million) in the Connected Secure Systems segment and
€248 million (2024: €116 million) in Corporate and Eliminations. More information on
impairment losses is provided in Note 4, p. 114.
166
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Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Entity-wide disclosures in accordance with IFRS 8
Revenue for the 2025 and 2024 fiscal years by region was as follows:
2025
2024
Change
€ in millions
absolute
in %
Revenue
Europe, Middle East, Africa
3,486
3,865
(379)
(10)
therein: Germany
1,437
1,617
(180)
(11)
Asia-Pacific (excluding Japan, Greater China)
2,449
2,461
(12)
–
Greater China 1
5,579
5,130
449
9
therein: Mainland China, Hong Kong
4,212
4,058
154
4
Japan
1,314
1,507
(193)
(13)
Americas
1,834
1,992
(158)
(8)
therein: USA
1,506
1,627
(121)
(7)
Total
14,662
14,955
(293)
(2)
1 Greater China comprises Mainland China, Hong Kong and Taiwan.
The allocation of revenue from external customers to geographic areas is based on
the customers’ locations. The average number of employees by geographic region is
provided in note 4. p. 114.
No single customer accounted for more than 10 percent of Infineon’s revenue during
the 2025 and 2024 fiscal years.
Non-current assets as of 30 September 2025 and 30 September 2024, by region
were as follows:
30 Septem-
ber 2025
30 Septem-
ber 2024
Change
€ in millions
absolute
in %
Non-current assets
Europe
6,906
6,667
239
4
therein: Germany
4,353
4,078
275
7
Asia-Pacific (excluding Japan, Greater China)
2,958
2,711
247
9
Greater China 1
165
158
7
4
therein: Mainland China, Hong Kong
143
147
(4)
(3)
Japan
36
59
(23)
(39)
Americas
9,990
8,707
1,283
15
therein: USA
9,973
8,691
1,282
15
Total
20,055
18,302
1,753
10
1 Greater China comprises Mainland China, Hong Kong and Taiwan.
Non-current assets do not include financial instruments, deferred tax assets or assets
from employee benefits.
167
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
30 Additional information in accordance with HGB
Information pursuant to section 161 Stock Corporation Act (AktG)
The Declaration of Compliance prescribed by section 161 AktG was drawn up by
the Management Board and the Supervisory Board and made permanently available
to the public on Infineon’s website.
www.infineon.com/en/declaration_of_compliance
Fees for audit and advisory services pursuant to
section 314, paragraph 1, no. 9, HGB
Year-end audit fees
At the Annual General Meeting held on 20 February 2025, the shareholders elected
Deloitte GmbH Wirtschaftsprüfungsgesellschaft (Deloitte), Munich (Germany),
as auditor for the 2025 Separate Financial Statements and Consolidated Financial
Statements of Infineon Technologies AG. The audit fees charged by Deloitte in the
2025 fiscal year amounted to €4.9 million for the audit of the Consolidated Financial
Statements and various annual audits, including an audit review of the Interim
Financial Statements.
Fees for other assurance services
In addition to the amounts described above, Deloitte charged a total of €0.7 million
in the 2025 fiscal year for other assurance services, which mainly included the audit
of the disclosures in the Sustainability Report, the audit of the Combined Separate
Non-Financial Report, the provision of comfort letters, as well as the substantive audit
of the Remuneration Report.
Management Board and Supervisory Board
Management remuneration in the 2025 fiscal year
As required by section 314, paragraph 1, no. 6, in conjunction with section 315e
paragraph 1, HGB, the total remuneration of the Management Board and the Super
visory Board is disclosed in note 25. p. 147
Disclosure of the renumeration of individual members of the Management Board and
the Supervisory Board, as required by section 162 of the AktG, can be found in the
Remuneration Report, which is prepared according to stock corporation law and is
available under the following link:
www.infineon.com/remuneration-report
The references to the Remuneration Report are not audited as part of the audit
of the financial statements. The Remuneration Report was subjected to a separate
substantive audit by the auditor in accordance with IDW Auditing Standard 490.
This audit also includes the formal audit required by section 162, paragraph 3 of
the German Stock Corporation Act (AktG).
168
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Subsidiaries, associated companies, joint ventures and
other companies (unconsolidated) as of 30 September 2025
Name of company
Registered office
Shareholdings
in %
Thereof Infineon
Technologies AG
Equity
(€ in millions)
Net result
(€ in millions)
Footnote
Fully consolidated subsidiaries:
Cypress Semiconductor (Mauritius) LLC
Ebène, Mauritius
100
0
0.06
(0.02)
4
Cypress Semiconductor (Switzerland) Sàrl
Lausanne, Switzerland
100
0
9.84
2.11
11
Cypress Semiconductor Corporation
Wilmington, Delaware, USA
100
0
6,255.61
165.79
5, 21
Cypress Semiconductor International, Inc.
Wilmington, Delaware, USA
100
0
279.91
31.52
5, 21
Cypress Semiconductor México, S. de R.L. de C.V.
Guadalajara, Mexico
100
0
0.07
0.37
5, 21
Cypress Semiconductor Singapore Pte. Ltd.
Singapore, Singapore
100
0
0.09
(0.16)
11
Cypress Semiconductor Technology Ltd.
Camana Bay (George Town), Cayman Islands
100
0
174.94
14.42
5, 21
Cypress Semiconductor Ukraine LLC
Lviv, Ukraine
100
0
2.49
0.17
10
Cypress Semiconductor World Trade Corp.
Camana Bay (George Town), Cayman Islands
100
0
8.00
4.50
5, 21
Hitex GmbH
Karlsruhe, Germany
100
100
2.16
0.00
5, 13, 15
Infineon Integrated Circuit (Beijing) Co., Ltd.
Beijing, People’s Republic of China
100
0
14.18
1.10
11
Infineon Semiconductors (Shenzhen) Co., Ltd.
Shenzhen, People’s Republic of China
100
0
3.72
1.89
11
Infineon Semiconductors (Wuxi) Co., Ltd.
Wuxi, People’s Republic of China
100
0
54.03
4.97
11
Infineon Technologies (Kulim) Sdn. Bhd.
Kulim, Malaysia
100
0
766.20
(5.41)
5
Infineon Technologies (Malaysia) Sdn. Bhd.
Melaka, Malaysia
100
0
381.58
37.76
5
Infineon Technologies (Penang) Sdn. Bhd.
Melaka, Malaysia
100
0
11.19
0.48
5
Infineon Technologies (Shanghai) Co. Ltd.
Shanghai, People’s Republic of China
100
0
54.40
50.97
11
Infineon Technologies (Thailand) Limited
Nonthaburi, Thailand
100
0
93.33
(1.50)
5
Infineon Technologies (Wuxi) Co., Ltd.
Wuxi, People’s Republic of China
100
0
129.07
21.78
11
Infineon Technologies (Xi’an) Co., Ltd.
Xi’an, People’s Republic of China
100
0
7.57
0.31
11
Infineon Technologies 2. Vermögensverwaltungsgesellschaft mbH
Neubiberg, Germany
100
0
0.02
(0.02)
5
Infineon Technologies 3. Vermögensverwaltungsgesellschaft mbH
Dresden, Germany
100
0
46.77
2.27
5, 15
Infineon Technologies Americas Corp.
Wilmington, Delaware, USA
100
0
1,690.24
322.97
5, 21
Infineon Technologies Asia Pacific Pte Ltd
Singapore, Singapore
100
0
1,484.94
337.26
5
Infineon Technologies Australia Pty Limited
Blackburn, Australia
100
0
1.60
0.12
5
Infineon Technologies Austria AG
Villach, Austria
100
0.004
2,350.75
140.45
5
Infineon Technologies Shared Service Center, Unipessoal Lda.
Maia, Portugal
100
100
8.07
1.41
5
Infineon Technologies Canada Inc.
Toronto, Ontario, Canada
100
0
735.89
(16.95)
5, 21
169
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Name of company
Registered office
Shareholdings
in %
Thereof Infineon
Technologies AG
Equity
(€ in millions)
Net result
(€ in millions)
Footnote
Infineon Technologies Cegléd Kft.
Cegléd, Hungary
100
0
102.85
0.13
5
Infineon Technologies Center of Competence (Shanghai) Co., Ltd.
Shanghai, People’s Republic of China
100
0
4.19
1.24
11
Infineon Technologies China Co., Ltd.
Shanghai, People’s Republic of China
100
0
241.19
85.84
11
Infineon Technologies Denmark ApS
Jyllinge, Denmark
100
0
0.74
(0.01)
5
Infineon Technologies Dresden AG & Co. KG
Dresden, Germany
100
100
259.11
(37.34)
5, 14, 16
Infineon Technologies Dresden Verwaltungs GmbH
Neubiberg, Germany
100
0
0.09
0.00
5, 13, 15
Infineon Technologies Duisburg GmbH & Co. KG
Duisburg, Germany
100
100
1.31
0.48
5, 17
Infineon Technologies Epi Services, Inc.
Wilmington, Delaware, USA
100
0
22.28
0.60
5, 21
Infineon Technologies Ethernet Solutions GmbH
Neubiberg, Germany
100
100
0.03
(0.01)
5
Infineon Technologies Finance B.V.
Rotterdam, The Netherlands
100
100
1.91
0.00
5
Infineon Technologies France S.A.S.
St. Denis, France
100
0
9.42
0.96
5
Infineon Technologies Holding B.V.
Rotterdam, The Netherlands
100
100
11,727.18
(556.02)
5
Infineon Technologies Hong Kong Ltd.
Hong Kong, People’s Republic of China
100
0
2.34
0.56
5
Infineon Technologies India Private Limited
Bangalore, India
100
0
64.50
5.70
4
Infineon Technologies Innovates G.K.
Tokyo, Japan
100
0
32.70
3.10
5
Infineon Technologies Investment B.V.
Rotterdam, The Netherlands
100
0
0.09
0.00
5
Infineon Technologies Ireland Limited
Dublin, Ireland
100
100
0.81
0.39
5
Infineon Technologies Italia s.r.l.
Milan, Italy
100
0
9.84
3.07
5
Infineon Technologies IT-Services GmbH
Klagenfurt, Austria
100
0
25.29
7.19
5
Infineon Technologies Japan K.K.
Tokyo, Japan
100
0
61.00
48.43
5
Infineon Technologies Korea Co., LLC
Seoul, Republic of Korea
100
0
20.98
9.90
5
Infineon Technologies LLC
Wilmington, Delaware, USA
100
0
443.00
(100.57)
5, 21
Infineon Technologies Manufacturing (Thailand) Ltd.
Samut Prakan, Thailand
100
0
15.73
(0.03)
8
Infineon Technologies Manufacturing Porto, Unipessoal Lda.
Vila do Conde, Portugal
100
0
0.00
0.00
9
Infineon Technologies Memory Solutions (Thailand) Ltd.
Samut Prakan, Thailand
100
0
n.a.
n.a.
12
Infineon Technologies Memory Solutions Germany GmbH
Neubiberg, Germany
100
0
0.26
0.00
5, 15
Infineon Technologies Memory Solutions Holdings Inc.
Wilmington, Delaware, USA
100
0
71.91
0.00
5, 21
Infineon Technologies Memory Solutions India LLP
Bangalore, India
100
0
0.48
0.05
4
Infineon Technologies Memory Solutions Israel Ltd.
Netanya, Israel
100
0
85.55
5.47
3
Infineon Technologies Memory Solutions Japan G.K.
Tokyo, Japan
100
0
1.08
0.16
5
Infineon Technologies Memory Solutions Malaysia Sdn. Bhd.
Kuala Lumpur, Malaysia
100
0
5.53
0.09
6
Infineon Technologies Memory Solutions Romania SRL
Bucharest, Romania
100
0
n.a.
n.a.
12
170
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Name of company
Registered office
Shareholdings
in %
Thereof Infineon
Technologies AG
Equity
(€ in millions)
Net result
(€ in millions)
Footnote
Infineon Technologies Memory Solutions Taiwan Ltd.
Taipei, Taiwan
100
0
(0.11)
0.01
5
Infineon Technologies Nijmegen B.V.
Nijmegen, The Netherlands
100
0
1.74
0.24
5
Infineon Technologies Nordic AB
Kista, Sweden
100
0
6.39
1.87
5
Infineon Technologies Philippines, Inc.
Muntinlupa City, Philippines
100
0
1.55
0.53
5
Infineon Technologies Reigate Limited
Bristol, Great Britain
100
0
3.20
0.93
5
Infineon Technologies Romania & Co. Societate in Comandita
Bucharest, Romania
100
0
9.23
3.37
5
Infineon Technologies Semiconductor GmbH
Aschheim, Germany
100
0
15.30
1.02
5, 15
Infineon Technologies Semiconductor Ireland Limited
Cork, Ireland
100
0
14.40
2.61
10
Infineon Technologies Switzerland AG
Zurich, Switzerland
100
0
6.03
0.97
11
Infineon Technologies Taiwan Co., Ltd.
Taipei, Taiwan
100
0
11.98
4.03
5
Infineon Technologies UK Limited
Bristol, Great Britain
100
0
9.39
1.50
5
Infineon Technologies US HoldCo Inc.
Wilmington, Delaware, USA
100
0
8,138.01
297.34
5, 21
Infineon Technologies US InterCo LLC
Wilmington, Delaware, USA
100
0
8,216.77
639.72
5, 21
Infineon Technologies Vermögensverwaltungsgesellschaft mbH
Neubiberg, Germany
100
100
405.89
0.00
5, 13, 15
International Rectifier HiRel Products, Inc.
Wilmington, Delaware, USA
100
0
460.85
72.79
5, 21
MOLSTANDA Vermietungsgesellschaft mbH
Neubiberg, Germany
100
0
219.44
32.10
5, 15
MOTEON GmbH
Neubiberg, Germany
100
100
0.57
0.07
5, 15
NoBug Consulting SRL
Bucharest, Romania
100
0
1.85
0.53
5
PT Infineon Technologies Batam
Batam, Indonesia
100
0
19.92
(0.38)
5
Rectificadores Internacionales, S.A. de C.V.
Tijuana, Mexico
100
0
15.10
1.75
5, 21
SILTECTRA GmbH
Dresden, Germany
100
0
26.20
11.47
5, 15
Spansion Inc.
Wilmington, Delaware, USA
100
0
546.04
0.00
5, 21
Spansion LLC
Wilmington, Delaware, USA
100
0
912.19
431.39
5, 21
Syntronixs Asia Sdn. Bhd.
Melaka, Malaysia
100
0
8.20
1.36
5
Associated companies:
Deca Technologies, Inc.
Dover, Delaware, USA
42.5
0
8.46
0.00
11, 20, 21
Joint ventures:
Infineon Technologies Bipolar GmbH & Co. KG
Warstein, Germany
60
60
55.14
11.58
5, 19
SAIC Infineon Automotive Power Modules (Shanghai) Co., Ltd
Shanghai, People’s Republic of China
49
25
88.15
1.28
11
171
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Name of company
Registered office
Shareholdings
in %
Thereof Infineon
Technologies AG
Equity
(€ in millions)
Net result
(€ in millions)
Footnote
Other companies (unconsolidated): 1
European Semiconductor Manufacturing Company (ESMC) GmbH
Dresden, Germany
10
10
139.52
(0.51)
10
GaN Systems GmbH
Munich, Germany
100
0
0.07
(0.02)
11
Hitex (UK) Limited
Coventry, Great Britain
100
0
2.91
1.05
3
Imagimob AB
Stockholm, Sweden
100
0
1.79
(2.07)
7
Industrial Analytics IA GmbH
Neubiberg, Germany
100
100
0.00
(1.87)
5
Infineon Technologies Bipolar Verwaltungs GmbH
Warstein, Germany
60
60
0.03
0.00
5
Infineon Technologies Bulgaria Ltd.
Plovdiv, Bulgaria
100
0
0.01
0.00
11
Infineon Technologies d.o.o. Beograd
Belgrade, Serbia
100
0
0.29
0.14
11
Infineon Technologies Delta GmbH
Neubiberg, Germany
100
100
0.03
0.00
5
Infineon Technologies Duisburg Verwaltungs GmbH
Duisburg, Germany
100
100
0.09
0.01
5
Infineon Technologies Gamma GmbH
Neubiberg, Germany
100
100
0.04
0.00
5
Infineon Technologies Holding GmbH
Neubiberg, Germany
100
100
0.13
0.00
5, 13
Infineon Technologies Iberia, S.L.U.
Madrid, Spain
100
0
0.21
0.11
5
Infineon Technologies Israel Ltd.
Netanya, Israel
100
0
0.22
0.03
5
Infineon Technologies Mantel 26 AG
Neubiberg, Germany
100
100
0.04
0.00
5
Infineon Technologies Mantel 27 GmbH
Neubiberg, Germany
100
100
0.03
0.00
5, 13
Infineon Technologies Mantel 29 GmbH
Neubiberg, Germany
100
100
0.03
0.00
5, 13
Infineon Technologies Polska Sp. z o.o.
Warsaw, Poland
100
0
0.26
0.06
5
Infineon Technologies Romania s.r.l.
Bucharest, Romania
100
0
0.05
0.02
11
Infineon Technologies South America Ltda
São Paulo, Brazil
100
0
0.11
0.04
11
Infineon Technologies Vietnam Company Ltd.
Hanoi, Vietnam
100
0
0.30
0.10
5
KAI Kompetenzzentrum Automobil- und Industrieelektronik GmbH
Villach-St. Magdalen, Austria
100
0
1.28
0.21
11
KFE Kompetenzzentrum Fahrzeug Elektronik GmbH
Lippstadt, Germany
24
24
1.10
(0.32)
11
MicroLinks Technology Corp.
Kaohsiung, Taiwan
n.a.
0
n.a.
n.a.
18
PT Infineon Technologies Indonesia
Jakarta, Indonesia
100
0
0.65
0.03
5
Quintauris GmbH
Munich, Germany
n.a.
n.a.
n.a.
n.a.
18
R Labco, Inc.
Wilmington, Delaware, USA
100
0
0.00
0.00
5
Schweizer Electronic AG
Schramberg, Germany
9
9
18.10
(2.99)
11
Silicon Alps Cluster GmbH
Villach, Austria
n.a.
0
n.a.
n.a.
18
Virtual Vehicle Research GmbH
Graz, Austria
n.a.
n.a.
n.a.
n.a.
18
XMOS Limited
Bristol, Great Britain
n.a.
0
n.a.
n.a.
18
172
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Name of company
Registered office
Shareholdings
in %
Thereof Infineon
Technologies AG
Equity
(€ in millions)
Net result
(€ in millions)
Footnote
Qimonda AG and its subsidiaries: 2
Celis Semiconductor Corp.
Colorado Springs, Colorado, USA
17
0
–
–
2
Itarion Solar Lda.
Vila do Conde, Portugal
40
0
–
–
2
Qimonda AG (in insolvency)
Munich, Germany
77
28
–
–
2
Qimonda Dresden GmbH & Co. OHG (in insolvency)
Dresden, Germany
77
0
–
–
2
Qimonda Dresden Verwaltungsgesellschaft mbH (in insolvency)
Dresden, Germany
77
0
–
–
2
Qimonda Flash GmbH (in insolvency)
Dresden, Germany
77
0
–
–
2
Qimonda Holding B.V. (in insolvency)
Rotterdam, The Netherlands
77
0
–
–
2
1 Certain subsidiaries were not consolidated due to immateriality.
2 On 23 January, 2009 Qimonda AG applied to the Munich District Court for insolvency proceedings to be opened. Insolvency proceedings were formally opened on 1 April, 2009. The equity and earnings of Qimonda AG and its subsidiaries are not disclosed due to the
substantial and ongoing restriction of Infineon’s rights as a result of Qimonda AG’s insolvency. The list of subsidiaries held by Qimonda AG reflects information from local commercial registers. Since all Qimonda-related investments were written down in full in previous years,
this has no effect on Infineon’s financial condition, liquidity and result of operations.
3 Equity and net result as of 30 September 2023.
4 Equity and net result as of 31 March 2024.
5 Equity and net result as of 30 September 2024.
6 Equity and net result as of 30 September 2024 (period from 2 October 2023 until 30 September 2024).
7 Equity and net result as of 30 September 2024 (period from 1 January 2024 until 30 September 2024).
8 Equity and net result as of 30 September 2024 (period from 27 February 2024 until 30 September 2024).
9 Equity and net result as of 30 September 2024 (period from 2 August 2024 until 30 September 2024).
10 Equity and net result as of 31 December 2023.
11 Equity and net result as of 31 December 2024.
12 The entity was newly founded in the 2025 fiscal year.
13 Control and profit transfer agreement.
14 Infineon Technologies AG is a shareholder with unlimited liability of this company.
15 Exemption pursuant to section 264, paragraph 3, German Commercial Code.
16 Exemption pursuant to section 264b German Commercial Code from the obligations to prepare a management report as well as notes and from the obligations to disclose the annual financial statements.
17 Exemption pursuant to section 264b German Commercial Code from the obligations to prepare notes to the financial statements and from the obligations to disclose the annual financial statements.
18 Due to minor importance, no further information on shareholding is disclosed in accordance with section 313, paragraphs 2 and 3, German Commercial Code in conjunction with section 315e, paragraph 1, German Commercial Code.
19 Infineon accounts for its interest using the equity method as Infineon lacks controlling influence due to certain contractual participation rights of the co-shareholder.
20 Consolidated financial statements.
21 IFRS figures.
173
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Neubiberg, 24 November 2025
Infineon Technologies AG
Management Board
Jochen Hanebeck
Alexander Gorski
Elke Reichart
Dr. Sven Schneider
Andreas Urschitz
174
Infineon | Annual Report 2025
Further information
Combined Management Report
Management Board and Supervisory Board
Consolidated Financial Statements
Notes
Further Information
Responsibility Statement
by the Management Board
To the best of our knowledge, and in accordance with the applicable reporting
principles, the Consolidated Financial Statements give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Group, and the Combined
Management Report, which is combined with the Management Report of Infineon
Technologies AG, includes a fair review of the development and performance of the
business and the position of the Group, together with a description of the principal
opportunities and risks associated with the expected development of the Group.
Neubiberg, 27 November 2025
Infineon Technologies AG
Management Board
Jochen Hanebeck
Alexander Gorski
Elke Reichart
Dr. Sven Schneider
Andreas Urschitz
175
Infineon | Annual Report 2025
Consolidated Financial Statements
Combined Management Report
Management Board and Supervisory Board
Further information
Responsibility Statement
by the Management Board
To Infineon Technologies AG, Neubiberg/Germany
Report on the audit of the consolidated financial
statements and of the combined management report
Audit Opinions
We have audited the consolidated financial statements of Infineon Technologies AG,
Neubiberg/Germany, and its subsidiaries (the Group), which comprise the consolidated
statement of financial position as at 30 September 2025, the consolidated statement
of profit or loss, the consolidated statement of comprehensive income, the consoli-
dated statement of changes in equity and the consolidated statement of cash flows
for the financial year from 1 October 2024 to 30 September 2025, and the notes to the
consolidated financial statements, including significant information on accounting
policies. We have not audited the content of the remuneration report, which is refer-
enced in notes 25 and 30 to the consolidated financial statements. In addition, we
have audited the combined management report for the parent and the group of
Infineon Technologies AG, Neubiberg/Germany, for the financial year from 1 October
2024 to 30 September 2025. In accordance with the German legal requirements,
we have not audited the content of the corporate governance statement pursuant to
Sections 289f and 315d German Commercial Code (HGB) and the combined separate
non-financial report, which are referenced in the “Corporate Governance” and “Group
strategy” chapters of the combined management report. Furthermore, we have not
audited the content of the remuneration report, which is referenced in the “Corporate
Governance” chapter of the combined management report, the sustainability report,
which is referenced in the “Group strategy” and “Internal management system”
chapters of the combined management report, and the disclosures extraneous to
combined management reports marked as unaudited.
In our opinion, on the basis of the knowledge obtained in the audit,
– the accompanying consolidated financial statements comply, in all material respects,
with the IFRS® Accounting Standards issued by the International Accounting
Standards Board (IASB) (hereinafter “IFRS Accounting Standards”) as adopted by
the EU and the additional requirements of German commercial law pursuant to
Section 315e (1) HGB and, in compliance with these requirements, give a true and
fair view of the assets, liabilities and financial position of the Group as at 30 Sep-
tember 2025 and of its financial performance for the financial year from 1 October
2024 to 30 September 2025; our audit opinion on the consolidated financial
statements does not cover the content of the remuneration report stated to be
unaudited; and
– the accompanying combined management report as a whole provides an appro-
priate view of the Group’s position. In all material respects, this combined manage
ment report is consistent with the consolidated financial statements, complies
with German legal requirements and appropriately presents the opportunities and
risks of future development. Our audit opinion on the combined management
report does not cover the content of the sustainability report, the combined sepa-
rate non-financial report included therein, the corporate governance statement
and the remuneration report, as well as the disclosures extraneous to combined
management reports marked as unaudited.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led
to any reservations relating to the legal compliance of the consolidated financial
statements and of the combined management report.
Basis for the Audit Opinions
We conducted our audit of the consolidated financial statements and of the combined
management report in accordance with Section 317 HGB and the EU Audit Regulation
(No. 537/2014; referred to subsequently as “EU Audit Regulation”) and in compliance
Independent Auditor’s Report
For the Consolidated Financial Statements and Group Management Report we have issued an unqualified auditor’s report. The English language text below is a
translation of the auditor’s report. The original German text shall prevail in the event of any discrepancies between the English translation and the German original.
We do not accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
176
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with German Generally Accepted Standards for Financial Statement Audits promulgated
by the Institut der Wirtschaftsprüfer (IDW). Our responsibilities under those require-
ments and principles are further described in the “Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements and of the Combined Management
Report” section of our auditor’s report. We are independent of the group entities in
accordance with the requirements of European law and German commercial and
professional law, and we have fulfilled our other German professional responsibilities
in accordance with these requirements. In addition, in accordance with Article 10 (2)
point (f) of the EU Audit Regulation, we declare that we have not provided non-audit
services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions on the consolidated financial statements and on the combined
management report.
Key Audit Matters in the Audit of the
Consolidated Financial Statements
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements for the financial year
from 1 October 2024 to 30 September 2025. These matters were addressed in the con-
text of our audit of the consolidated financial statements as a whole and in forming
our audit opinion thereon; we do not provide a separate audit opinion on these matters.
In the following we present the key audit matters we have determined in the course
of our audit:
1. recoverability of goodwill
2. accounting for the acquisition of the Automotive Ethernet business of Marvell
Technology, Inc., Wilmington/US
Our presentation of these key audit matters has been structured as follows:
a) description (including reference to corresponding information in the consolidated
financial statements)
b) auditor’s response
Recoverability of goodwill
a) The consolidated financial statements of Infineon AG as at 30 September 2025
report goodwill of mEUR 7,849 (26% of total assets). The executive directors test
goodwill for impairment at the level of the operating segments once a year or
when there are indications of impairment. The impairment tests involve compar-
ing the carrying amounts of each operating segment with its recoverable amount.
The recoverable amount of the respective operating segment is determined on
the basis of value in use. The value in use is calculated using the discounted cash
flow method. In this context, the present values of future cash flows, which are
derived from the executive directors’ corporate planning for the next five years,
are used as a basis. Planning periods that lie further in the future, which account
for a significant portion of the recoverable amounts (phase of perpetuity), are
included by extrapolating the cash flows of the last detailed planning year, assum-
ing a sustainable growth rate. Discounting is based on the weighted average cost
of capital of the respective operating segment.
The impairment tests carried out did not identify any need to recognize impairment
losses. The result of the calculation of the operating segments’ value in use is highly
dependent on the executive directors’ assessment of future cash flows and discount
rates, and is therefore subject to considerable uncertainty. Significant judgment is
required when making assumptions concerning future revenue growth, profitability
and cash flows. Against this background, this matter was of particular relevance in
the context of our audit.
The executive directors’ disclosures on the recognition and measurement policies
applied and the assumptions used are included in note 2 to the consolidated financial
statements. Information on the amount of goodwill is provided in note 14 to the
consolidated financial statements.
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b) We began our audit by familiarizing ourselves with the processes in place and
evaluating the design and implementation of controls relevant to the audit, gained
an understanding of the methodical procedure for performing the impairment
tests, evaluated the determination of discount rates and, in collaboration with our
valuation experts, assessed the impairment test calculation methodology. In this
context, we determined the extent to which the performance of the impairment
tests may be affected by subjectivity, complexity or other inherent risk factors and,
in the case of estimates by the executive directors, assessed the acceptability of
the methods applied, the assumptions made and the data used. With regard to the
forecast of future cash flows, we assessed the reliability of the corporate planning
by examining adherence to planning in the past. In addition, we validated the
executive directors’ expectations regarding future revenue, profitability and cash
flows by comparing them with market studies and analysts’ estimates for com
parable companies. We considered the parameters used to determine the discount
rates applied and verified their appropriateness based on our own calculations.
Since the measurement is also dependent on economic conditions that are beyond
the Group’s control, we additionally performed our own sensitivity analyses to
validate the parameters used for the operating segments. Finally, we determined
whether the disclosures in the notes to the consolidated financial statements are
complete and accurate.
Accounting for the acquisition of the Automotive Ethernet business of
Marvell Technology, Inc., Wilmington/US
a) Effective 14 August 2025, Infineon AG acquired the Automotive Ethernet business
of Marvell Technology, Inc., Wilmington/US, for mEUR 2,201 through an asset deal.
The acquisition was accounted for as a business combination in accordance with
IFRS 3 using the acquisition method. As part of the preliminary purchase price
allocation, the acquired identified assets and assumed liabilities were recognized
at acquisition-date fair value. In particular, with regard to intangible fixed assets,
the executive directors believe that adjustments may still be necessary due to the
ongoing integration of the Automotive Ethernet business. To determine and value
the acquired identified assets and assumed liabilities, the executive directors
engaged an external expert as a neutral valuer. Taking into account the remeasured
net assets recognized at mEUR 837, goodwill amounted to mEUR 1,364.
The identification and valuation of assets and liabilities, especially intangible fixed
assets, are complex processes that are based on estimates and assumptions requir-
ing the executive directors’ judgment. In the context of the valuation in particular,
various assumptions have to be made to determine the future cash flows derived
from asset-specific revenue and margin expectations and to determine the discount
rates used. The executive directors’ valuation of intangible fixed assets is based on
their own detailed long-term corporate planning. Against this background, this matter
was of particular relevance in the context of our audit.
The Company’s information on the company acquisition is included in note 3 to the
consolidated financial statements.
b) As part of our audit of the accounting for the acquisition of the Automotive Ethernet
business, we first reviewed the underlying contractual agreements and assessed
their potential impact on the consolidated statement of financial position. In addi-
tion, we gained an understanding of the business model of the Automotive Ethernet
division and reconciled the purchase price as consideration for the acquired assets
and assumed liabilities with the purchase agreement and payment documents.
In the case of estimates made by the executive directors, we reviewed the appro-
priateness of the valuation methods applied to technology- and market-related
intangible fixed assets. In addition, we assessed the assumptions made, in partic-
ular with regard to market-specific synergies, as well as the data used, such as
capital market data for deriving the cost of capital, in terms of their plausibility
and acceptability. We then involved our valuation experts to assess the results
of the external expert engaged by the Company with regard to the identification
of the assets and liabilities and their valuation at acquisition-date fair value and
to evaluate the expert’s competence, capabilities and objectivity. By interviewing
management about the key value drivers of the acquired business division, we
verified the consistency and completeness of the identification of assets made by
management in the context of the asset deal. As part of the assessment of the
valuation, we reviewed, among other things, the underlying models, the assump-
tions made and the valuation parameters applied.
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Further information
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In addition, we analyzed the parameters used to determine the discount rates
applied in detail and verified their appropriateness based on our own calculations.
We validated the executive directors’ corporate planning underlying the valuation
with regard to profitability expectations by making comparisons with analysts’
estimates for comparable companies.
Finally, we determined whether the disclosures in the notes to the consolidated
financial statements required by IFRS 3 are complete and accurate.
Other Information:
The executive directors and/or the supervisory board are responsible for the other
information. The other information comprises:
– the report of the supervisory board,
– the remuneration report pursuant to Section 162 AktG,
– the sustainability report, including the combined separate non-financial report
pursuant to Sections 289b and 315b HGB included therein,
– the corporate governance statement pursuant to Sections 289f and 315d HGB,
– the disclosures extraneous to combined management reports included in the
combined management report and marked as unaudited,
– the executive directors’ confirmations pursuant to Section 297 (2) sentence 4 and
Section 315 (1) sentence 5 HGB regarding the consolidated financial statements
and the combined management report, and
– all other parts of the annual report,
– but not the consolidated financial statements, not the audited content of the dis-
closures in the combined management report and not our auditor’s report thereon.
The supervisory board is responsible for the report of the supervisory board. The
executive directors and the supervisory board are responsible for the statement
according to Section 161 German Stock Corporation Act (AktG) concerning the German
Corporate Governance Code, which is part of the corporate governance statement,
and for the remuneration report pursuant to Section 162 AktG. Otherwise the executive
directors are responsible for the other information.
Our audit opinions on the consolidated financial statements and on the combined
management report do not cover the other information, and consequently we do not
express an audit opinion or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information
identified above and, in doing so, to consider whether the other information
– is materially inconsistent with the consolidated financial statements, with the
audited content of the disclosures in the combined management report or our
knowledge obtained in the audit, or
– otherwise appears to be materially misstated.
Responsibilities of the Executive Directors and the
Supervisory Board for the Consolidated Financial
Statements and the Combined Management Report
The executive directors are responsible for the preparation of the consolidated finan-
cial statements that comply, in all material respects, with IFRS Accounting Standards
as adopted by the EU and the additional requirements of German commercial law
pursuant to Section 315e (1) HGB, and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of the assets, liabilities,
financial position and financial performance of the Group. In addition, the executive
directors are responsible for such internal control as they have determined necessary
to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud (i.e., fraudulent financial reporting and
misappropriation of assets) or error.
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In preparing the consolidated financial statements, the executive directors are respon-
sible for assessing the Group’s ability to continue as a going concern. They also have
the responsibility for disclosing, as applicable, matters related to going concern.
In addition, they are responsible for financial reporting based on the going concern
basis of accounting unless there is an intention to liquidate the Group or to cease
operations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the preparation of the
combined management report that as a whole provides an appropriate view of the
Group’s position and is, in all material respects, consistent with the consolidated
financial statements, complies with German legal requirements, and appropriately
presents the opportunities and risks of future development. In addition, the execu-
tive directors are responsible for such arrangements and measures (systems) as they
have considered necessary to enable the preparation of a combined management
report that is in accordance with the applicable German legal requirements, and to
be able to provide sufficient appropriate evidence for the assertions in the combined
management report.
The supervisory board is responsible for overseeing the Group’s financial reporting
process for the preparation of the consolidated financial statements and of the
combined management report.
Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements and of the Combined Management Report
Our objectives are to obtain reasonable assurance about whether the consolidated
financial statements as a whole are free from material misstatement, whether due to
fraud or error, and whether the combined management report as a whole provides
an appropriate view of the Group’s position and, in all material respects, is consistent
with the consolidated financial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropriately presents the oppor-
tunities and risks of future development, as well as to issue an auditor’s report
that includes our audit opinions on the consolidated financial statements and on the
combined management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Section 317 HGB and the EU Audit Regulation and in
compliance with German Generally Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material
misstatement. Misstatements can arise from fraud or error and are considered mate-
rial if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial
statements and this combined management report.
We exercise professional judgment and maintain professional skepticism throughout
the audit. We also
– identify and assess the risks of material misstatement of the consolidated financial
statements and of the combined management report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our audit
opinions. The risk of not detecting a material misstatement resulting from fraud is
higher than the risk of not detecting a material misstatement resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
– obtain an understanding of internal control relevant to the audit of the consolidated
financial statements and of arrangements and measures relevant to the audit
of the combined management report in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an audit
opinion on the effectiveness of internal control or these arrangements and mea-
sures of the Group.
– evaluate the appropriateness of accounting policies used by the executive directors
and the reasonableness of estimates made by the executive directors and related
disclosures.
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Management Board and Supervisory Board
Further information
Independent Auditor’s Report
– conclude on the appropriateness of the executive directors’ use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in the auditor’s report to the
related disclosures in the consolidated financial statements and in the combined
management report or, if such disclosures are inadequate, to modify our respec-
tive audit opinions. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to be able to continue as a going concern.
– evaluate the overall presentation, structure and content of the consolidated finan-
cial statements, including the disclosures, and whether the consolidated financial
statements present the underlying transactions and events in a manner that the
consolidated financial statements give a true and fair view of the assets, liabilities,
financial position and financial performance of the Group in compliance with IFRS
Accounting Standards as adopted by the EU and with the additional requirements
of German commercial law pursuant to Section 315e (1) HGB.
– plan and perform the audit of the consolidated financial statements in order to
obtain sufficient appropriate audit evidence regarding the financial information of
the entities or of the business activities within the Group, which serves as a basis
for forming audit opinions on the consolidated financial statements and on the
combined management report. We are responsible for the direction, supervision
and review of the audit procedures performed for the purposes of the group audit.
We remain solely responsible for our audit opinions.
– evaluate the consistency of the combined management report with the consolidated
financial statements, its conformity with German law, and the view of the Group’s
position it provides.
– perform audit procedures on the prospective information presented by the execu-
tive directors in the combined management report. On the basis of sufficient
appropriate audit evidence we evaluate, in particular, the significant assumptions
used by the executive directors as a basis for the prospective information, and
evaluate the proper derivation of the prospective information from these assump-
tions. We do not express a separate audit opinion on the prospective information
and on the assumptions used as a basis. There is a substantial unavoidable risk
that future events will differ materially from the prospective information.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify during our audit.
We provide those charged with governance with a statement that we have complied
with the relevant independence requirements, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our inde-
pendence, and where applicable, the actions taken or safeguards applied to eliminate
independence threats.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the consolidated financial
statements for the current period and are therefore the key audit matters. We describe
these matters in the auditor’s report unless law or regulation precludes public disclo-
sure about the matter.
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Combined Management Report
Management Board and Supervisory Board
Further information
Independent Auditor’s Report
Other legal and regulatory requirements
Report on the Assurance on the Electronic Reproductions of the
Consolidated Financial Statements and of the Combined Management
Report Prepared for Publication Pursuant to Section 317 (3a) HGB
Assurance Opinion
We have performed assurance work in accordance with Section 317 (3a) HGB to obtain
reasonable assurance whether the electronic reproductions of the consolidated
financial statements and of the combined management report (hereinafter referred to
as “ESEF documents”) prepared for publication, contained in the file, which has the
SHA-256 value: 51e6b4a8e584a63c8f41e3412839b8cd23c9b2dd9cb0215c7429a2f9ba
8adb50, meet, in all material respects, the requirements for the electronic reporting
format pursuant to Section 328 (1) HGB (“ESEF format”). In accordance with the German
legal requirements, this assurance work only covers the conversion of the information
contained in the consolidated financial statements and the combined management
report into the ESEF format, and therefore covers neither the information contained
in these electronic reproductions nor any other information contained in the file
identified above.
In our opinion, the electronic reproductions of the consolidated financial statements
and of the combined management report prepared for publication contained in the
file identified above meet, in all material respects, the requirements for the electronic
reporting format pursuant to Section 328 (1) HGB. Beyond this assurance opinion
and our audit opinions on the accompanying consolidated financial statements and
on the accompanying combined management report for the financial year from
1 October 2024 to 30 September 2025 contained in the “Report on the Audit of the
Consolidated Financial Statements and of the Combined Management Report”
above, we do not express any assurance opinion on the information contained
within these electronic reproductions or on any other information contained in the
file identified above.
Basis for the Assurance Opinion
We conducted our assurance work on the electronic reproductions of the consolidated
financial statements and of the combined management report contained in the
file identified above in accordance with Section 317 (3a) HGB and on the basis of the
IDW Assurance Standard: Assurance Work on the Electronic Reproductions of Financial
Statements and Management Reports Prepared for Publication Purposes Pursuant
to Section 317 (3a) HGB (IDW AuS 410 (06.2022)). Our responsibilities in this context
are further described in the “Group Auditor’s Responsibilities for the Assurance Work
on the ESEF Documents” section. Our audit firm has applied the requirements of the
IDW Quality Management Standards.
Responsibilities of the Executive Directors and
the Supervisory Board for the ESEF Documents
The executive directors of the Company are responsible for the preparation of the
ESEF documents based on the electronic files of the consolidated financial statements
and of the combined management report according to Section 328 (1) sentence 4
no. 1 HGB and for the tagging of the consolidated financial statements according to
Section 328 (1) sentence 4 no. 2 HGB.
In addition, the executive directors of the Company are responsible for such internal
control that they have considered necessary to enable the preparation of ESEF docu-
ments that are free from material intentional or unintentional non-compliance with
the requirements for the electronic reporting format pursuant to Section 328 (1) HGB.
The supervisory board is responsible for overseeing the process for preparing the
ESEF documents as part of the financial reporting process.
Group Auditor’s Responsibilities for the
Assurance Work on the ESEF Documents
Our objective is to obtain reasonable assurance about whether the ESEF documents
are free from material intentional or unintentional non-compliance with the require-
ments of Section 328 (1) HGB. We exercise professional judgment and maintain pro-
fessional skepticism throughout the audit. We also
– identify and assess the risks of material intentional or unintentional non-compliance
with the requirements of Section 328 (1) HGB, design and perform assurance pro-
cedures responsive to those risks, and obtain assurance evidence that is sufficient
and appropriate to provide a basis for our assurance opinion.
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Further information
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– obtain an understanding of internal control relevant to the assurance on the ESEF
documents in order to design assurance procedures that are appropriate in the
circumstances, but not for the purpose of expressing an assurance opinion on the
effectiveness of these controls.
– evaluate the technical validity of the ESEF documents, i.e., whether the file con-
taining the ESEF documents meets the requirements of the Delegated Regulation
(EU) 2019/815, in the version in force at the reporting date, on the technical speci-
fication for this electronic file.
– evaluate whether the ESEF documents enable an XHTML reproduction with
content equivalent to the audited consolidated financial statements and to the
audited combined management report.
– evaluate whether the tagging of the ESEF documents with Inline XBRL technology
(iXBRL) in accordance with the requirements of Articles 4 and 6 of the Delegated
Regulation (EU) 2019/815, in the version in force at the reporting date, enables an
appropriate and complete machine-readable XBRL copy of the XHTML reproduction.
Further Information Pursuant to Article 10 of the EU Audit Regulation
We were elected as group auditor by the general meeting on 20 February 2025. We
were engaged by the supervisory board on 21 February 2025. We have been the
group auditor of Infineon Technologies AG, Neubiberg/Germany, without interrup-
tion since the financial year 2023/2024.
We declare that the audit opinions expressed in this auditor’s report are consistent
with the additional report to the audit committee pursuant to Article 11 of the EU
Audit Regulation (long-form audit report).
Other matter – use of the auditor’s report
Our auditor’s report must always be read together with the audited consolidated
financial statements and the audited combined management report as well as with
the assured ESEF documents. The consolidated financial statements and the combined
management report converted into the ESEF format – including the versions to be
submitted for inclusion in the Company Register – are merely electronic reproduc-
tions of the audited consolidated financial statements and the audited combined
management report and do not take their place. In particular, the ESEF report and
our assurance opinion contained therein are to be used solely together with the
assured ESEF documents made available in electronic form.
German Public Auditor responsible
for the engagement
The German Public Auditor responsible for the engagement is Alexander Hofmann.
Munich/Germany, 27 November 2025
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Signed:
Signed:
Christoph Schenk
Alexander Hofmann
Wirtschaftsprüfer
Wirtschaftsprüfer
(German Public Auditor)
(German Public Auditor)
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Applications and product range
Automotive
Applications
Assistance systems and safety systems
– ABS (Anti-blocking system)
– Airbag
– Automatic parking
– Blind spot detection
– Distance control
– E/E architecture
– Power distribution
– On-board network
– Electronic chassis control
– Electronic power steering
– Emergency braking assistant
– Highway assistant
– Lane departure warning system
– Seatbelt pretensioners
– Tire pressure monitoring system
Comfort electronics
– Air conditioning
– Body control units
– Door electronics
– Electronic seat adjustment
– Hatch door
– Massage functionality
– Lighting
– Steering
– Sunroof
– Suspension
– Windshield wipers
Infotainment
– Connectivity for in-cabin infotainment
– Digital instrument cluster
Powertrain
– Battery management
– Combustion engine control
– DC-DC converter
– Electric motor control
– Thermal management
– Transmission control
Security
– Authentification of original parts
– Communication
– Car-to-car
– Car-to-infrastructure
– Protection against manipulation (e.g., odometer)
– Protection against software manipulation
– Remote keyless entry
– Tachograph
Product range
– 32-bit automotive microcontrollers for powertrain,
safety, driver assistance systems, infotainment
and digital display systems
– Analog ICs (gate drivers, intelligent power switches,
power management ICs)
– Ethernet (switches, bridges, PHY)
– Industrial microcontrollers
– Memory ICs (NOR flash, SRAM, nvSRAM, F-RAM)
– Power diodes (Si, SiC)
– Power modules (IGBT (Insulated Gate Bipolar
Transistor), SiC)
– Power switches (Si, SiC, GaN)
– Sensors (3D- Time of Flight (ToF), pressure, magnetic,
77 GHz radar, current)
– Transceivers (Controller Area Network (CAN), CAN FD
(Controller Area Network Flexible Data Rate), Local
Interconnect Network (LIN), FlexRay™)
– Voltage regulators
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Further information
Applications and product range
Automotive
Green Industrial Power
Applications
Air conditioning technology
– Air conditioning systems
– Heat pumps
Energy generation
– Hydrogen electrolysis
– Photovoltaic systems
– Wind power turbines
Energy storage
– Grid stability
– Home energy storage
– Urban district storage
Energy transmission
– Flexible AC transmission systems (FACTS)
– Offshore wind farm HVDC transmission lines
– Overland HVDC transmission lines
– Solid-state transformers (SST)
Home appliances
– Dishwashers
– Hair dryers
– Induction cooktops
– Refrigerators
– Vacuum cleaners
– Washing machines
Industrial drives
– Automation technology
– Drive technologies
– Elevator systems
– Escalators
– Industrial robotics
– Material handling
– Oil derricks
– Pipelines
– Rolling mills
Industrial power supplies
– Auxiliary power supplies
– Battery chargers for electrical vehicles (OBC)
– Charging stations for electric vehicles
– Solid-state circuit breaker (SSCB)
– Switch-mode power supply (SMPS)
– Uninterruptible power supplies
– Vehicle thermal management
Industrial vehicles
– Agricultural vehicles
– Construction vehicles
– Electrical airplanes
– Electrical buses
– Electrical drones
– Electrical ships
– Electrical trucks
Traction
– Electric mining vehicles
– High-speed trains
– Locomotives
– Metro trains
– Trams
Product range
– Discrete IGBTs
– IGBT “Bare Die”
– IGBT modules (low-power, medium-power,
high-power)
– Intelligent IGBT modules with integrated control unit,
driver and switch
– SiC discretes (diodes, MOSFET or
Metal-Oxide-Semiconductor Field-Effect Transistor,
JFET or Junction Field-Effect Transistor)
– SiC modules (MOSFET, JFET)
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Further information
Applications and product range
Green Industrial Power
Power & Sensor Systems
Applications
Audio amplifiers
– Battery-powered loudspeakers
– Smart speakers
Automotive electronics
– Blind spot detection
– In-cabin USB PD charging
– Onboard charger
– Power train for low-speed electric vehicles
BLDC motor
– Battery-powered electronic devices, e.g.,
– Cordless screwdrivers
– Drills
– Lawn mowers
– Power saws
– Robotic vacuum cleaners and vacuum cleaners
– eBikes
– eScooters
– Multi-copters
Cellular communications infrastructure
– Base stations
Charging stations for electric vehicles
Human-machine interaction
IoT
– Communications
– Sensors
– Smart speakers
– Voice control
LED and conventional lighting systems
Microinverter for roof-top systems
Mobile devices
– Activity trackers
– Health care trackers
– Navigation devices
– Smartphones
– Tablets
Power management (chargers, adapters, power
supplies, DC-DC conversion, wireless charging)
– AI data centers
– Consumer electronics
– Data centers
– Mobile devices
– PCs and notebooks
– Servers
– Telecommunication technology
Special applications in harsh environments
– Aerospace systems
– Aviation technologies
– Defense technologies
– Oil and gas exploration
– Submarine telecommunications
Product range
– 3D Time of Flight (ToF) sensors
– Chips for gas sensors
– Chips for MEMS microphones
– Chips for pressure sensors
– Control ICs for power switches
– Customized chips (ASICs)
– Discrete low-voltage, mid-voltage and high-voltage
power MOSFETs (Si-based)
– ESD (electrostatic discharge) protection diodes
– GaN power switches
– GPS (Global Positioning System) low-noise amplifiers
– Low-voltage and high-voltage driver ICs
– Radar sensor ICs (24 GHz, 60 GHz)
– RF antenna switches
– RF power transistors
– SiC diodes, SiC MOSFETs
– USB controllers
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Further information
Applications and product range
Power & Sensor Systems
Connected Secure Systems
Applications
Authentication
– Accessories
– Brand protection
– Game consoles
– Industrial control systems
– Printer cartridges
Automotive
– Connected vehicles,
– Car-to-car communications
– Car-to-infrastructure communications
– eCall
– Electronic toll collection (toll collect)
– In-cabin infotainment
– Protection against manipulation (e.g., tachographs)
Consumer electronics
– Game consoles
– Remote control
– Smart watches and activity trackers
Government identification documents
– Driver’s licenses
– Healthcare cards
– National identity cards
– Passports
– Social insurance cards
IoT
– Edge AI
– Industry 4.0
– IT equipment
– Smart city
– Smart home
Mobile communications
– Embedded SIM
(machine-to-machine communication)
– Consumer applications
– IoT applications
– SIM cards
Payment systems
– Credit/debit cards
– Mobile payment
– NFC-based contactless payment
Ticketing, access control
Trusted computing
Product range
– Connectivity solutions (Wi-Fi, Bluetooth,
Bluetooth Low Energy (BLE), UWB)
– Embedded security controllers (Embedded SIM,
Authentication, Trusted Computing)
– Microcontroller for consumer electronics and
industrial applications
– Security controllers (contact-based, contactless,
dual-interface)
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Combined Management Report
Management Board and Supervisory Board
Further information
Applications and product range
Connected Secure Systems
Page
C01 The main stages of the
semiconductor value chain
22
C02 Core competencies in the segments
24
C03 R&D expenses
37
C04 Revenue and Segment Result of the
Automotive segment
47
C05 Revenue and Segment Result of the
Green Industrial Power segment
48
C06 Revenue and Segment Result of the
Power & Sensor Systems segment
49
C07 Revenue and Segment Result of the
Connected Secure Systems segment
50
C08 Revenue by segment
51
C09 Financial debt by currency
56
C10 Development of the Infineon Technologies AG
share compared to Germany’s DAX Index,
the Philadelphia Semiconductor Index (SOX)
and the Dow Jones U.S. Semiconductor Index
for the 2025 fiscal year (daily closing prices)
62
C11 Shareholder structure as of the end
of the 2025 fiscal year
62
C12 Dividend per share for the
2016 to 2026 fiscal years
63
AktG
Aktiengesetz
(German Stock Corporation Act)
AI
Artificial Intelligence
CGU
Cash Generating Unit
CISMS
Cyper & Information Security
Management System
CMS
Compliance Management System
CO2
Carbon Dioxide
COSO
Committee of Sponsoring
Organizations of the
Treadway Commission
CSR
Corporate Social Responsibility
CSRD
Corporate Sustainability
Reporting Directive
DAX
Deutscher Aktienindex
DC-DC
Direct Current to Direct
Current Conversion
DRAM
Dynamic Random Access Memory
EBITDA
Earnings Before Interest, Taxes,
Depreciation & Amortization
EMTN
European Medium Term Notes
ERM
Enterprise Risk Management
ESG
Environmental, Social & Governance
eSIM
embedded SIM
ETC
Exchange-Traded Commodities
GaN
Gallium Nitride
HGB
Handelsgesetzbuch
(German Commercial Code)
IAS
International Accounting Standards
IASB
International Accounting Standards
Board
IC
Integrated Circuit
ICS
Internal Control System
IDW
Institut Deutscher Wirtschaftsprüfer
(Institute of German Certified Public
Accountants)
IFRIC
International Financial
Reporting Interpretations Committee
IFRS
International Financial
Reporting Standards
IMF
International Monetary Fund
IoT
Internet of Things
IP
Intellectual Property
ISO
International Organization
for Standardization
LTI
Long-Term Incentive
M&A
Mergers & Acquisitions
MEMS
Micro-Electromechanical System
MitbestG Mitbestimmungsgesetz
(German Co-Determination Act)
NAND
not AND
NFC
Near-Field Communication
P2S
Product to System
PSoC
Programmable System-on-Chip
RoCE
Return on Capital Employed
SBTi
Science Based Targets-initiative
Si
Silicon
SiC
Silicon Carbide
SOX
Philadelphia Semiconductor Index
SST
Solid-State Transformer
STI
Short-Term Incentive
TOM
Target Operating Model
TSR
Total Shareholder Return
USB
Universal Serial Bus
USPP
US Private Placement
UWB
Ultra Wideband
WACC
Weighted Average Cost of Capital
WpHG
Wertpapierhandelsgesetz
(German Securities Trading Act)
WSTS
World Semiconductor Trade Statistics
Chart overview
List of abbreviations
188
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Combined Management Report
Management Board and Supervisory Board
Further information
Chart overview | List of abbreviations
Financial calendar 2026
February
4
1 Preliminary
February
19
May
6
August
5
November
10
Wednesday
Thursday
Wednesday
Wednesday
Tuesday
Publication of
first quarter 2026 1
results
Annual General
Meeting 2026
Publication of
second quarter 2026 1
results
Publication of
third quarter 2026 1
results
Publication of
fourth quarter and
fiscal year 2026 1
results
189
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Consolidated Financial Statements
Combined Management Report
Management Board and Supervisory Board
Further information
Financial calendar 2026
Imprint
Published by:
Infineon Technologies AG, Neubiberg (Germany)
Editors:
Investor Relations, Accounting, Consolidation & Reporting
Copy deadline:
27 November 2025
Fiscal year:
1 October to 30 September
Independent auditors:
Deloitte GmbH Wirtschaftsprüfungsgesellschaft,
Munich (Germany)
Designed by:
HGB Hamburger Geschäftsberichte GmbH & Co. KG,
Hamburg (Germany)
Photography:
Page 4: Werner Bartsch, Hamburg (Germany)
Page 10: Werner Bartsch, Hamburg (Germany)
Page 12: Bernhard Schmidt, Munich (Germany)
Public
Visit us on the web: www.infineon.com
Forward-looking statements
This report contains forward-looking statements and/or assessments about the business, financial condition,
performance and strategy of the Group. These statements and/or assessments are based on assumptions and
management expectations resting upon currently available information and present estimates. They are subject
to a multitude of uncertainties and risks, many of which are entirely or partially beyond Infineon’s control.
Infineon’s actual business development, financial position, performance and strategy may therefore differ
materially from the statements made in this report. Beyond disclosure requirements stipulated by law, Infineon
does not undertake any obligation to update forward-looking statements.
Specific disclaimer for Omdia – part of Informa Tech – reports, data and information
referenced in this document:
Information is not an endorsement of Infineon Technologies AG. Any reliance on these results is at the
third party’s own risk.
Specific disclaimer for S&P Global reports, data and information referenced in this document:
The S&P Global Mobility and S&P Global Commodity Insights reports, data and information referenced herein
(the “S&P Global Materials”) are the copyrighted property of S&P Global Inc. and its subsidiaries (“S&P Global”)
and represent data, research, opinions or viewpoints published by the relevant divisions within S&P Global, and
are not representations of fact. The S&P Global Materials speak as of the original publication date thereof and not
as of the date of this document. The information and opinions expressed in the S&P Global Materials are subject
to change without notice and neither S&P Global nor, as a consequence, Infineon have any duty or responsibility
to update the S&P Global Materials or this publication. Moreover, while the S&P Global Materials reproduced
herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are
the opinions and analyses which are based upon it. S&P Global and the trademarks used in the Data, if any, are
trademarks of S&P Global. Other trademarks appearing in the S&P Global Materials are the property of S&P Global
or their respective owners.
190
Infineon | Annual Report 2025
Consolidated Financial Statements
Combined Management Report
Management Board and Supervisory Board
Further information
Imprint
Infineon Technologies AG
Headquarters:
Am Campeon 1 – 15, D-85579 Neubiberg near Munich (Germany), Phone + 49 89 234 - 0
Contact for Investors and Analysts:
investor.relations@infineon.com, Phone + 49 89 234 - 26655
Media Contact:
media.relations@infineon.com, Phone + 49 89 234 - 28480
Visit us on the web:
www.infineon.com
