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Renesas Electronics Corporation has announced its consolidated financial results for the year ending December 31, 2024. The company reported a revenue of 1,348.5 billion yen, marking an 8.2% decrease from the previous year.
The decline in revenue was primarily attributed to a downturn in the Industrial, Infrastructure, and IoT sectors, driven by weakening demand. Despite this, the Automotive Business segment experienced growth, benefiting from yen depreciation and channel inventory expansion.
Gross profit for the year stood at 749.8 billion yen, a decrease from the prior year. This reduction was due to lower revenue, decreased factory utilization, and a less favorable product mix. Additionally, increased research and development expenses contributed to a decline in operating profit, which fell by 167.8 billion yen to 223.0 billion yen. Consequently, profit attributable to owners of the parent company decreased by 118.0 billion yen, totaling 219.1 billion yen for the year.
In the fourth quarter of 2024, Renesas reported revenue of 292.6 billion yen. The company achieved a non-GAAP gross margin of 54.9% and a non-GAAP operating margin of 25.8% during this period.
Looking ahead, Renesas has provided consolidated forecasts for the first quarter of 2025. The company anticipates non-GAAP revenue to range between 301.5 billion yen and 316.5 billion yen. The non-GAAP gross margin is projected at 54.0%, with a non-GAAP operating margin of 24.0%.
Renesas continues to navigate the challenges posed by fluctuating market demands, focusing on its core strengths in the semiconductor industry to drive future growth.
Original – Renesas Electronics
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Coherent announced financial results for its fiscal second quarter ended December 31, 2024.
Revenue for the second quarter of fiscal 2025 was $1.43 billion, with GAAP gross margin of 35.5% and GAAP net income of $0.44 per diluted share. On a non-GAAP basis, gross margin was 38.2% with net income per diluted share of $0.95.
Jim Anderson, CEO, said, “We delivered strong growth in the December quarter on both a sequential and year-over-year basis, resulting in record revenue, driven by another quarter of strong AI-related Data Center demand as well as growth in our Telecom business. We also drove significant improvement in gross margin and operating margin. I would like to thank my Coherent teammates for their strong execution.”
Sherri Luther, CFO, said, “I am pleased by our profitability, cash generation and debt reduction in the second quarter. Revenue growth and margin expansion drove significant sequential and year-over-year increases in our GAAP and Non-GAAP EPS. We also paid down $132 million of our outstanding debt.”
Original – Coherent
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Power Integrations announced that Balu Balakrishnan, the company’s CEO since 2002, will retire from that role once a successor is in place. The company’s board of directors has retained an executive search firm to assist in identifying its next CEO; both internal and external candidates will be considered. Mr. Balakrishnan, 70, intends to serve as executive chairman of the company’s board for as long as is needed to ensure a smooth transition to his successor, and is expected to remain on the board of directors thereafter.
Mr. Balakrishnan joined Power Integrations in 1989, shortly after its formation, from National Semiconductor, where he was a product-line manager. He is the inventor of many Power Integrations products including TOPSwitch™, the company’s first commercial product, followed by TinySwitch™, the first product to feature the company’s renowned EcoSmart™ technology for reducing standby-power waste. Mr. Balakrishnan served in a succession of executive roles before being named president and chief operating officer in 2001.
In 2002 he was named CEO and joined the company’s board of directors. He has been awarded more than 200 U.S. patents and has received numerous awards including the Discover Award for Technological Innovation in recognition of the environmental benefits of EcoSmart technology.
Commented Mr. Balakrishnan: “I am incredibly proud of what we have achieved at Power Integrations over the past 35 years. And while it is time for me to turn over leadership of the company to a new CEO, I remain as passionate as ever about the work we are doing, and I believe exciting times are ahead. We have a talented, dedicated workforce and a promising array of products and technologies with which to pursue growth opportunities in a broad range of end markets. I look forward to working with our new CEO to ensure a smooth transition.”
Bala Iyer, lead independent director of Power Integrations’ board, added: “The board and I congratulate Balu for all that he has achieved at Power Integrations, and we are delighted that he will continue to play an important role in the company’s future. Balu is not only one of the great inventors in the history of the power semiconductor industry, but also an outstanding leader who has built a durable franchise with strong intellectual property, a deep reservoir of engineering talent and a culture that nurtures innovation. I am confident that we will identify an outstanding individual to lead the company in its next phase of growth, building on the strong foundation that Balu has put in place.”
Original – Power Integrations
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Vishay Intertechnology, Inc. announced results for the fiscal fourth quarter and year ended December 31, 2024.
Highlights
- 4Q 2024 revenues of $714.7 million
- 4Q 2024 GAAP loss per share of ($0.49); adjusted EPS of $0.00
- 4Q 2024 book-to-bill of 1.01, with book-to-bill of 0.99 for semiconductors and 1.03 for passive components
- Backlog at quarter end was 4.4 months
- Returned a total of $26.2 million to stockholders in Q4 2024; $105.1 million for the year
- FY 2024 capex of $320.1 million
“Our fourth quarter results came in as expected, slightly below the third quarter. Nevertheless, we saw many promising indicators including a positive book-to-bill for the first time in nine quarters, strong order intake for smart grid infrastructure projects, and initial shipments for A.I. servers,” said Joel Smejkal, President and CEO.
“For 2025, we are well positioned to support a market upturn as capacity, print position, and customer engagements have been key priorities under Vishay 3.0. All of our strategic levers are in play as we continue to execute our five-year plan to position Vishay to take advantage of the megatrends of e-mobility and sustainability.”
For the first quarter of 2025, management expects revenues in the range of $710 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately of 175-200 basis points related to Newport.
Original – Vishay Intertechnology
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Soitec announced consolidated revenue of 226 million Euros for the third quarter of FY’25 (ended December 29th, 2024), down 6% on a reported basis compared to the third quarter of FY’24. This reflects a 10% decline at constant exchange rates and perimeter, a positive currency impact of 5% and a negative scope effect of 1%.
Pierre Barnabé, Soitec’s CEO, commented: “After a very strong sequential rebound in the second quarter, we maintained the third-quarter revenue at a fairly similar level. The good performance of the Mobile Communications division was driven by sustained momentum in POI, and a seasonal tailwind in RF-SOI sales. Despite seasonal restocking in the second half of the fiscal year, the customers continue to optimize RF-SOI inventory levels based on seasonality and market conditions, which will keep driving fluctuations over the next few quarters. At the same time, we are strengthening our position as a leader, notably with the introduction of new innovative 300mm products. The Automotive and Industrial division continues to be impacted by a weak automotive market. In Edge & Cloud AI, the momentum remains strong, supported by significant investments in cloud infrastructure across the industry to accelerate AI computing power, as well as increasing demand at the edge for lower energy consumption and processing costs.
Due to worsening conditions in the Automotive and Consumer markets, a couple of customers have requested to put some delivery requests on hold. As a consequence, we are adjusting our guidance for fiscal year 2025, with annual revenue expected to decrease by high single digit year-on-year. We are managing our EBITDA margin to be between 32% and 34%.
With the lack of visibility on our end markets for now, it is also too early to provide specific guidance for fiscal year 2026. Given current market conditions, we expect at this stage quite limited growth for fiscal year 2026.
Our fundamentals remain solid and will allow us to accelerate as end markets recover. We continue to enhance our technology leadership, to strengthen our SOI positioning with both existing and new customers, and to deploy our expansion into compound semiconductors with the acceleration of POI volumes and a fifth customer in qualification on SmartSiCTM.”
Original – Soitec
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Navitas Semiconductor announced its adoption of both technologies into Dell’s family of notebook adapters, from 60 W to 360 W.
Enabled by over 20 years of SiC technology leadership, GeneSiC leads on performance of SiC MOSFETs with patented ‘trench-assisted planar’ technology and 5th-gen GeneSiC silicon carbide (SiC) diodes to deliver high-speed, high-efficiency performance with proprietary ’low-knee’ technology for cool operation.
Navitas’ GaNFast power ICs enable high-frequency, high-efficiency power conversion, achieving 3x more power and 3x faster charging in half the size and weight compared to prior designs with legacy silicon power devices.
Navitas GaN & SiC technology together enables Dell to provide high-speed charging, with highest efficiency, coolest temperature, smallest size, and lowest material count. Dell’s latest line-up of AI notebooks includes Neural Processor Units (NPUs), which are dedicated AI engines, to manage sustained AI and AI offload. This builds on Dell’s portfolio as the broadest GaN adapter offering for notebooks in the industry.
The new adapters will also help Dell achieve its advanced sustainability goals, with a focus on CO2 reduction and energy reduction. The adapter cases require up to 50% less plastic and are made with post-recycled materials, significantly reducing energy waste, and improving resource utilization. Navitas’ GaNFast and GeneSiC technologies increase the level of system integration and switching frequency, which reduces the number of components, as well as the size, resulting in a ‘dematerialization’ that lowers carbon footprint throughout the production, packaging, and logistics processes. Each GaNFast power IC shipped saves 4 kg CO2 and every SiC MOSFET shipped saves 25 kg CO2 vs. legacy silicon power chips.
“Since Dell’s first GaN adapter was enabled by Navitas back in 2020, we’ve worked closely with Dell engineering to further improve charging speed, efficiency, size, weight, and now environmental footprint”, said Gene Sheridan, CEO and co-founder of Navitas. “Dell’s new adapters are an optimal solution for speed, portability, and sustainability. Our clients achieve a win-win for both the market and environment by deploying Navitas GaNFast power ICs and GeneSiC power devices.”
Original – Navitas Semiconductor
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Infineon Technologies AG has signed a €2.0 billion revolving credit facility with a tenor of five years and two one-year extension options at each lender’s discretion.
A total of 14 national and international reputable banks from Europe, America, and Asia have taken part in the transaction.
“This highly successful transaction highlights the strong trust which Infineon enjoys from its banking group. With the new facility, Infineon enhances and complements its liquidity position for general corporate purposes.”, says Matthias Wolff, Head of Corporate Finance at Infineon.
Original – Infineon Technologies
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GlobalFoundries announced, following a rigorous succession planning process, its Board of Directors has appointed Dr. Thomas Caulfield as Executive Chairman and Tim Breen as Chief Executive Officer. Caulfield succeeds Ahmed Yahia who will step down from the Board and his role as Chairman after more than a decade in the position. Breen, who has been with GF since 2018, and is currently Chief Operating Officer (COO), succeeds Caulfield. In addition, Niels Anderskouv, currently GF’s Chief Business Officer, has been appointed GF’s President and COO. With a strong foundation in place, this leadership transition positions GF to accelerate its next phase of growth. These changes will become effective April 28, 2025.
“I am extremely proud of all that we have accomplished at GF,” said Yahia. “In partnership with our customers, we have built GF into a leading semiconductor manufacturer, with a differentiated technology portfolio and a truly global footprint. With a solid strategic foundation and strong execution capabilities in place, it’s the right time to take the company to the next level. In this context, the Board and Tom selected Tim as its new CEO. Tim has a clear vision for GF, a well-articulated strategy, an impeccable operational track record and a proven ability to drive business performance. The Board is also delighted that Tom will remain closely engaged with the company in his new capacity of Executive Chairman and will continue to focus on strategic industry, academia and government partnerships. Tom has been a superb leader for the company, a values-driven CEO who put the company on the path to sustained success. We are deeply grateful for his leadership over the past seven years.”
“Following a thoughtful, multi-year succession planning process the board unanimously selected Tim to be GF’s next CEO,” said David Kerko, Lead Independent Director of the GF Board. “We are confident he is the right person to guide GF forward and are excited to work closely with him as the company continues to build on its strong momentum.”
“I am truly honored and excited to be appointed as the next CEO of GF,” said Breen. “GF is uniquely positioned with our talented team, differentiated technology and geographically diverse manufacturing footprint to meet our global customers’ needs. I appreciate the confidence that the Board has placed in me, and I look forward to partnering with Tom and Niels to expand our portfolio, deepen our customer focus, accelerate our growth and deliver increasing value for our shareholders.”
“Since joining GF, Tim has played a critical role as my co-pilot in shaping the strategy of the company,” said Caulfield. “In his current role as COO, Tim has made a tremendous impact integrating GF’s global operations and driving performance while accelerating our digital and sustainability transformations. As the AI wave moves from cloud to edge, GF is uniquely positioned to accelerate growth and continue to innovate, deliver and create value for all our stakeholders, and I am fully confident in Tim’s ability to lead the company into this next phase.”
“I am also looking forward to Niels assuming an even greater responsibility for end-to-end execution of commercial strategy, product differentiation and global manufacturing,” continued Caulfield. “Since joining the team in 2023, Niels has set a clear strategy for building differentiated products, value-added services and establishing durable partnerships with our customers. Together, Tim and Niels have the vision and experience to guide the company forward.”
“Finally, I want to express my deepest gratitude to Ahmed for his tireless efforts and exceptional leadership over the past eleven years,” said Caulfield. “His vision and dedication have been instrumental in shaping GF into the company it is today.”
Caulfield became President and CEO of GF in 2018. During his tenure he repositioned the technology portfolio to focus on differentiated, essential chips and steered the company to sustainable profitability. In 2021, he spearheaded GF’s IPO, one of the largest semiconductor IPOs in history. Amid a global chip shortage, he focused on building resilient supply chains, investing in new manufacturing capacity and forging partnerships with key customers and governments.
Breen oversees the company’s global operations, including the manufacturing, quality, supply chain and IT teams, based in New York. Prior to becoming COO in 2023, he served in various senior executive roles encompassing strategy, business transformation and finance as a close partner and advisor to the CEO since 2018. Prior to joining GF, Breen was a senior member of the executive team at Mubadala Investment Company where he led global projects and investments across numerous sectors from energy and industrials to consumer and life sciences, including contributing to the creation of several multi-billion-dollar companies. He has also served on the board of several public and private companies, including his current position of Chairman of NOVA Chemicals. Earlier in his career, after graduating from the London Business School, he was a partner at McKinsey & Company.
Anderskouv joined GF as Chief Business Officer in 2023 with responsibilities for leading GF’s product and technology roadmap, business and commercial strategy as well as the company’s go-to-market execution. He brings more than 25 years of experience in engineering, manufacturing, executive management and global leadership in the semiconductor industry.
Prior to joining GF, he served as Senior Vice President and Executive Officer at Texas Instruments, where he was responsible for the company’s multi-billion-dollar Analog Power business. Anderskouv holds a Master of Science in Electrical Engineering from the Technical University of Denmark (DTU) in Copenhagen.
Original – GlobalFoundries
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Siltronic AG has achieved its annual guidance for 2024 at the upper end of expectations based on preliminary, unaudited figures. The company reported preliminary sales of EUR 1,413 million, a decline of about 7 percent compared to the previous year (2023: EUR 1,514 million). The target for the reporting year was a high single-digit percentage decrease in sales.
The main reason for the year-over-year decline was weaker demand from the semiconductor industry due to continued high inventory levels, particularly at chip manufacturers. Despite the ongoing demand weakness for the second consecutive financial year, Siltronic recorded only a slight decrease in sales prices. As a result, a preliminary EBITDA of EUR 364 million (2023: EUR 434 million) and thus a continued solid EBITDA margin of 26 percent (2023: 29 percent) was achieved. This margin was also at the upper end of the guided range of 24 to 26 percent.
“Despite a challenging market environment, we achieved our guidance and demonstrated our resilience with an EBITDA margin of 26 percent, thanks to targeted cost reduction measures. For the year 2025, we anticipate that the growth in the end-markets, primarily driven by AI, will not yet be reflected in our wafer demand due to the persistently elevated inventory levels in the value chain. Therefore, we expect H1 2025 to be significantly weaker than H2 2024,” commented Dr. Michael Heckmeier, CEO of Siltronic AG.
Compared to the previous year, cost of sales decreased at an underproportional level to sales due to lower fixed cost dilution and higher depreciation. As expected, earnings before interest and taxes (EBIT) were significantly lower year-over-year at EUR 125 million (2023: EUR 231 million). The preliminary EBIT margin was 9 percent compared to 15 percent in 2023.
Net cash flow improved due to lower capex
In the year under review, capex including intangible assets was significantly reduced to EUR 523 million (2023: EUR 1,316 million). The majority of investments continued to relate to the new 300 mm wafer fab in Singapore, which was commissioned at the beginning of 2024 and will now be ramped over several years.
Due to the ongoing demand weakness and the still elevated project-related investments, the preliminary net cash flow for 2024 remained negative at EUR -297 million, but improved significantly compared to the previous year (2023: EUR -664 million). As a result, net financial debt increased to EUR 733 million as of December 31, 2024 (2023: EUR 356 million). This includes the dividend payment of EUR 36 million for 2023.
Business performance in Q4 2024
Preliminary Q4 2024 sales of EUR 361 million were slightly higher than Q3 (EUR 357 million), supported by a stronger US dollar. Preliminary EBITDA for Q4 2024 of EUR 93 million exceeded the previous quarter’s level (Q3 2024: EUR 89 million), mainly due to the improved FX result. The preliminary EBITDA margin was 26 percent (Q3 2024: 25 percent). With a planned slight increase in depreciation, the preliminary EBIT in Q4 2024 amounted to EUR 27 million (Q3 2024: EUR 29 million). Preliminary net cash flow for Q4 improved significantly to EUR 21 million (Q3 2024: EUR -65 million). This improvement is mainly due to better operating cash flow and timing differences between payment dates and the accounting of capex. Preliminary capex for Q4 amounted to EUR 116 million (Q3 2024: EUR 94 million).
Guidance for the financial year 2025
Despite the forecast for continued end market growth in the current financial year, inventory levels at chip manufacturers and their customers are only slowly decreasing. This continues to delay the expected wafer demand recovery. The Executive Board therefore expects demand to remain subdued and no sales growth in 2025. Assuming unchanged exchange rates, sales are expected to be in the region of the previous year. According to current estimates, the first six months of 2025 will be the most affected, as customer volume shifts from long-term contracts will also partly occur from the first to the second half of 2025.
The sales guidance takes into account the announced closure of wafer production for diameters up to 150 mm in Burghausen, which is now scheduled for July 31, 2025. This will have a slightly negative impact on sales and a negligible impact on earnings compared to the previous year.
The EBITDA margin is expected to be in the range of 22 to 27 percent. The cost of ramping the new fab will be partially offset by savings in energy and other areas.
At this point, Siltronic’s visibility remains very limited. A more detailed guidance is expected to be provided with the publication of the Annual Report on March 6, 2025.
Mid-term ambition delayed due to postponed demand recovery
The demand recovery assumed in the mid-term ambition (published at the Capital Markets Day in 2023) did not materialize in 2024, and the current financial year also continues to be characterized by subdued growth prospects. As a result, the mid-term ambition of generating sales of more than EUR 2.2 billion and an EBITDA margin in the high 30’s by 2028 will likely not be realized until a later point in time.
Despite these developments, Siltronic is convinced of its medium-term growth potential. Key drivers of this growth are megatrends such as Artificial Intelligence, Digitalization, and Electromobility which will lead to a strong increase in demand for semiconductors and thus also for wafers.
Dividend proposal of EUR 0.20 per share
Due to the continued demand recovery delay, the Executive Board proposes to the Annual General Meeting on May 12, 2025, a reduction of the dividend to EUR 0.20 per share for the financial year 2024. Based on the preliminary figures, this corresponds to a payout ratio of approximately 10 percent of the consolidated net income attributable to Siltronic shareholders.
“The freed-up funds will flow into our future investments to increase the long-term value of Siltronic. Despite the ongoing demand weakness, it is important to us that our shareholders continue to participate in the company’s success,” said Claudia Schmitt, CFO of Siltronic AG.
Original – Siltronic
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Infineon Technologies AG reported results for the first quarter of the 2025 fiscal year (period ended 31 December 2024).
“Infineon has held up well in a weak market environment, closing its first quarter slightly ahead of expectations,” says Jochen Hanebeck, CEO of Infineon. “Against a continued uncertain economic backdrop, our business trajectory in this fiscal year is following the pattern we expected: Following the expected inventory reduction, we continue to anticipate that the recovery in demand will be gradual for the current fiscal year. The positive stand-out is the move towards increased use of artificial intelligence, which is driving demand for our leading power supply solutions for AI data centers. This is a prime example of our long-term growth drivers, digitalization and decarbonization.”
- Q1 FY 2025: Revenue €3.424 billion, Segment Result €573 million, Segment Result Margin 16.7 percent
- Outlook for Q2 FY 2025: Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €3.6 billion expected. On this basis, Segment Result Margin forecast to be in the mid-teens percentage range
- Outlook for FY 2025: Based on an assumed exchange rate of US$1.05 to the euro (previously US$1.10), revenue is now expected to be flat to slightly up (previously: to decline slightly) compared with the prior year. The adjusted gross margin should be around 40 percent and the Segment Result Margin in the mid-to-high-teens percentage range. Investments of approximately €2.5 billion planned. Free Cash Flow adjusted for investments in frontend buildings should be around €1.7 billion and reported Free Cash Flow around €900 million
Original – Infineon Technologies
