Infineon and GlobalFoundries Extend Long-Term Agreement with Focus on Automotive Microcontrollers
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The recent multi-year agreement between Infineon Technologies AG and GlobalFoundries represents a strategic move to bolster the supply chain for automotive microcontrollers, power management and connectivity solutions. This deal is crucial in an industry where the demand for these components is escalating, driven by the shift towards autonomous, connected and electric vehicles (EVs). As the automotive sector undergoes a significant transformation, the ability to ensure a reliable supply of semiconductors is paramount for manufacturers like Infineon to maintain market competitiveness and meet the increasing technological demands of next-generation vehicles.
From a market perspective, this agreement could enhance Infineon's positioning within the semiconductor market, potentially increasing its market share and strengthening customer relationships. The focus on eNVM technology, which is critical for safety and security in automotive applications, underscores the industry's direction towards higher standards in vehicle systems. The emphasis on decarbonization and digitalization aligns with global trends and Infineon's commitment to these areas could open up new market opportunities and drive demand for their products.
The announcement of Infineon's long-term agreement with GlobalFoundries is likely to have a positive impact on Infineon's financial stability by securing a stable supply of critical components for the next several years. This could lead to improved investor confidence, as supply chain assurance is a significant factor in the current economic climate, particularly for the automotive industry. The partnership's longevity since 2013 suggests a proven track record of collaboration and innovation, which is often viewed favorably by investors.
For GlobalFoundries, securing Infineon as a key long-term customer enhances its revenue visibility and strengthens its business model. It also highlights the importance of a diversified global manufacturing footprint in meeting customer capacity needs, which is a selling point for GlobalFoundries' services. The focus on the European market, a hub for automotive innovation and economic activity, may also be seen as a strategic advantage for both companies in the long run.
The strategic partnership between Infineon and GlobalFoundries is indicative of the ongoing evolution within the automotive industry towards more sophisticated electronic systems. Infineon's AURIX microcontrollers are central to this shift, enabling advancements in autonomous driving, vehicle connectivity and electrification. The importance of eNVM technology in this context cannot be overstated, as it provides the necessary reliability and safety for mission-critical applications in modern vehicles.
This long-term agreement not only addresses immediate supply chain challenges but also serves as a foundation for future innovation in the automotive sector. The focus on enhancing connectivity and safety features in microcontrollers is aligned with the industry's trajectory towards fully autonomous and user-centric vehicles. As these technologies become more prevalent, partnerships like this one could significantly influence the pace and direction of automotive technology development.
MUNICH, Germany and MALTA, N.Y., Jan. 22, 2024 (GLOBE NEWSWIRE) -- Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) and GlobalFoundries (Nasdaq: GFS) (GF) today announced a new multi-year agreement on the supply of Infineon’s AURIX™ TC3x 40 nanometer automotive microcontrollers as well as power management and connectivity solutions. The additional capacity will contribute to secure Infineon’s business growth from 2024 through 2030.
Infineon and GF have been partnering since 2013 in the development of differentiated automotive, industrial and security semiconductor technology and products. At the center of this collaboration is a highly reliable embedded non-volatile memory (eNVM) technology solution that is well suited for enabling mission-critical automotive applications while meeting the stringent safety and security requirements for next-generation vehicle systems. Infineon’s flagship microcontroller family AURIX already drives the transition in the industry towards autonomous, connected, and electrified vehicles.
“With this long-term agreement, Infineon further strengthens the supply of semiconductor solutions that are driving decarbonization and digitalization,” said Dr. Rutger Wijburg, Chief Operations Officer of Infineon. “As demand continues to accelerate for automotive applications, our goal is to deliver high-quality microcontrollers with enhanced connectivity and advanced safety and security. Our AURIX microcontrollers are a key ingredient for dependable electronics as we move towards a world with all-electric, all-connected, user-centric, autonomous cars.”
“Today’s announcement secures Infineon as a key long-term customer across multiple geographies, and particularly in Europe where the automotive industry has been an important contributor to innovation and economic growth. This underscores the criticality of a global manufacturing footprint that enables us to partner with our customers to meet their capacity needs, where they need it,” said Niels Anderskouv, Chief Business Officer of GF. “Our collaboration with Infineon delivers differentiation and innovation in automotive spanning two continents, and this long-term agreement provides Infineon with additional manufacturing for a more resilient supply chain.”
About Infineon
Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 58,600 employees worldwide and generated revenue of about
Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press
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About GlobalFoundries
GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com.
©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
Forward-looking Information
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
| Contact Infineon: | ||
| Andre Tauber | ||
| +49 175 4077932 | ||
| Andre.Tauber@infineon.com | ||
| Contact GF: | ||
| Erica McGill | Jens Drews | |
| +1 518 795-5240 | +49 172 3552369 | |
| erica.mcgill@gf.com | jens.drews@gf.com | |
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