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Infineon: Europe’s Overachieving, yet ‘Undervalued’ Chip Gem

Infineon has built a fortified products fortress, ensuring it can withstand the industry's buffeting winds. But challenges are rising in China even as investors undervalue the German chip supplier.
Infineon: Europe’s Overachieving, yet ‘Undervalued’ Chip Gem

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By Bolaji Ojo

What’s at stake?
Infineon Technologies blazed through the industry’s recent downturn unscathed, a testament to its well-placed bets on recession-proof segments of the semiconductor market. Now comes the hard part; proving this was not a fluke performance, fending off Chinese rivals and determining the right amount of fab capacity in a rapidly evolving market.

Infineon Technologies AG should be a hot stock. It is not.

Institutional equity investors and bargain hunters should be banging on the German semiconductor supplier’s doors and helping to boost its market value to several multiples of the current €47 billion ($51 billion). Infineon seems to be lacking such an appeal.

That’s a shame.

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