Italian and French Semiconductors plan to spend US $4 billion to expand production capacity this year

Recently, Italy and France Semiconductor announced the fourth quarter financial results at the fourth quarter earnings conference in 2022. The company reported net income of US $4.42 billion in the fourth quarter, gross profit margin of 47.5%, operating profit margin of 29.1% and net profit of US $1.25 billion. Jean-Marc Chery, president and CEO of Italian French Semiconductor, said publicly that he would invest about US $4 billion to expand the production of 300 mm wafers and increase the manufacturing capacity of silicon carbide, including the implementation of the substrate plan.

Driven by the strong demand of automobile and industry, the revenue of Italian French Semiconductor increased by 26.4% to US $16.13 billion in fiscal year 2022, and its operating profit margin increased to 27.5% from 19.0% in fiscal year 2021.

Compared with the previous quarter, by product group:

Automotive and Discrete Group (ADG):

Automobile and power discrete income increased.

Operating profit increased by 117.9% to US $470.2 million. The operating profit margin was 27.7%, compared with 17.6% in the same period last year.

Analog, MEMS and sensors (AMS):

Imaging revenue increased while analog and MEMS revenue decreased.

Operating profit increased by 2.4% to US $345.6 million. The operating profit margin was 25.8%, compared with 27.0% in the same period last year.

Microcontroller and digital IC (MDG):

Microcontroller and RF communication revenue increased.

Operating profit increased by 56.6% to US $495.3 million. The operating profit margin was 35.8%, compared with 29.5% in the same period last year.

Jean-Marc Chery, president and CEO of Italian French Semiconductor, said that throughout 2023, the company will continue to implement its original strategy, focusing on automobile and industry.

In addition, Jean-Marc Chery said that strong demand from automotive and industrial customers boosted sales. Due to strong demand and improved manufacturing capacity, the company expects that the annual revenue of 2023 will reach US $16.8 billion to US $17.8 billion.