Specialist
Manager at Bayerische Motoren Werke AG (BMW)
Agenda
- Automotive semiconductor content trends, highlighting areas of component shortage
- Evolution of Infineon's (ETR: IFX) OEM (original equipment manufacturer) and tier 1 spend
- Competitive landscape, highlighting dynamics vs companies such as STMicroelectronics (NYSE: STM) and ON Semiconductor ( NASDAQ: ON)
- Growth outlook for silicon, SiC (silicon carbide) and GaN (gallium nitride)
Questions
1.
What’s your outlook for the semiconductor shortage across industries but especially in automotive, which is particularly important for Infineon?
2.
Which components would you say are in short supply vs more abundant?
3.
How is the shortage impacting pricing across products such as MCUs [microcontroller units], MOSFETs [metal-oxide-semiconductor field-effect transistors] and other power semiconductors and sensors?
4.
Are semiconductor manufacturers such as Infineon building capacity specifically to serve one OEM [original equipment manufacturer] or tier 1 customer?
5.
How do OEMs and tier 1s work together to mitigate the chance of certain components not being available?
6.
You mentioned that tier 1s have different bargaining power than OEMs around semiconductor procurement. What pricing can OEMs achieve when working in directed buy relationships? How does that differ from what a tier 1 would be able to negotiate for a contract?
7.
You mentioned that tier 1s have shorter contracts and lower pricing and OEMs have longer contracts and higher pricing. Could you estimate a range for contract lengths and pricing and how those differ for OEMs and tier 1s?
8.
You mentioned that there might be a 5% difference in price of the contract value between an OEM and a tier 1. Do you think that is accurate or would you say it’s higher than 5%?
9.
Is over-ordering from OEMs and tier 1s during the pandemic still a feature in the market? Do you expect that to be a more structural change in how the market operates? When could things return to normal?
10.
How much might OEMs and tier 1s spend on power semiconductors over the next five years or so?
11.
Could you elaborate on your suggestion that 55% of cars produced by 2030 will be EVs?
12.
How much of the power semiconductor market do you think Infineon will be able to service, considering market share for automobiles?
13.
How do you think about the distribution of semiconductor spend across key car use cases such as EVs, powertrains, safety, ADAS [advanced driver-assistance systems], autonomous vehicles, infotainment and chargers?
14.
How do you think about the competitive dynamics across key players such as Infineon, STMicroelectronics, ON Semiconductor, Mitsubishi, Vishay and ABB, especially for EV inverters? Which semiconductors are better-placed to meet the needs of the big OEMs and tier 1s?
15.
You said you thought Infineon could get 35% of power semiconductor market share. How would that look across MCUs and sensors? Would it be a similar figure or different?
16.
Do you think Infineon will probably manage legacy nodes vs moving into more leading-edge areas?
17.
You commented on semiconductor content doubling with EVs coming onto the market. What are the other growth trends in automotive semiconductor content? Do you have any thoughts on the long-term SiC [silicon carbide] and GaN [gallium nitride] volume growth outlook and the auto market adoption trends for those newer technologies?
18.
To what extent could STMicroelectronics have a lead on GaN? When might Infineon catch up to them?
19.
Who is the market leader in SiC?
20.
Would you say that lead times are coming down or increasing? Where do you think things will be across 2022-25? How could the supply-demand dynamic evolve?
21.
Is there anything else that we haven’t been through that you think is important for people to know about Infineon and its relationship with customers?
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