These are interesting times for the semiconductor
industry. End-market demand is still pretty healthy, and with many
suppliers at or near capacity, lead times have lengthened and
double-ordering has become more commonplace. That's a threat to
companies like Infineon (OTCQX:IFNNY) (IFXGn.XE), ON Semiconductor (ON), and STMicroelectronics (STM),
as the industry has struggled in the past to exit gracefully from
periods of extended lead times and deal with what is often an
over-capacity situation in the immediate aftermath.
I do believe the near-term outlook for Infineon has some risks to it (and I would say the same for ON, STM, and Renesas (OTCPK:RNECY)),
but I like the company's long-term growth opportunities in areas like
auto, factory automation, renewables, and appliances, as it leverages
its very strong position in power and looks to grow share in
microcontrollers (or MCUs).
Follow this link for the full article:
Infineon Facing Near-Term Ordering Risks, But Attractive Long-Term Growth Opportunities
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