US tariff uncertainty weighs on Infineon's revenue outlook

FRANKFURT (Reuters) -German chipmaker Infineon Technologies reported stable order intake on Thursday but lowered its full-year revenue outlook due to uncertainty over global tariff disputes.

U.S. President Donald Trump has said tariffs on semiconductor chips would start at "25%, or higher," rising substantially over the course of a year, but has not specified when these would come into effect, putting chipmakers in limbo.

"Given that order intake still shows no signs at all of slowing down, we can only guesstimate the effects of tariff disputes," CEO Jochen Hanebeck said in a statement.

He added the company had applied a haircut of 10% of expected revenue in the last quarter of its fiscal year, which ends on September 30.

In its 2024 fiscal year, revenue came in at 15 billion euros ($17 billion). Infineon previously expected flat or slightly higher revenue this year.

"Without the haircut the forecast would have remained essentially unchanged," Infineon said, adding that new exchange rate assumptions also weighed on its outlook.

Infineon now expects an operating margin in the mid-teens percentage range, narrowing down the previous mid-to-high-teens range.

($1 = 0.8860 euros)

(Reporting by Hakan Ersen, writing by Thomas Seythal; editing by Matthias Williams)