Industry association sees worldwide record sales in the chip industry – Infineon nevertheless under pressure

The chip industry has benefited from ongoing digitalization worldwide and has achieved record sales. For the current year, the industry association SIA expects an increase in revenue of almost nine percent. Digitization during the corona pandemic will also boost demand for chips in the future.

Last year, manufacturers increased their sales by 26.2 percent to an unprecedented $555.9 billion.

A total of 1.15 trillion semiconductors have been sold. Due to high demand, all providers such as Intel, TSMC and Samsung Electronics are currently expanding their capacities.

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In order to attract companies, the USA, China and the European Union rely on subsidy programs. Just last week, the EU Commission announced that it would mobilize 15 billion euros in additional public and private investment in chip production by 2030 through the initiative known as the “European Chips Act”.

Infineo share fell significantly

Infineon shares have plummeted since mid-November and have developed a short-term downward trend. The title has already lost 23 percent this year, making it one of the weakest DAX stocks in 2022. The 200-day line (red) has already been broken and the value is now approaching the 2021 low for the year at just under 30 euros. The technical chart situation only improves when the resistance of around EUR 34 is exceeded.

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