BERLIN, Nov 12 (Reuters) - German chipmaker Infineon

said on Tuesday that it expected "subdued"

performance in 2025, citing weak demand in its end markets.

"With the exception of artificial intelligence, our end

markets are currently offering hardly any growth impetus and the

cyclical recovery is delayed," said CEO Jochen Hanebeck. "We are

therefore preparing for a subdued business performance in 2025."

The company warned of another slight revenue decline in the

current financial year, after revenue fell by 8% to 14.96

billion euros ($15.90 billion) in its 2023-24 financial year.

In August, Infineon narrowed its annual revenue guidance to

around 15 billion euros, having already twice lowered it.

The segment result margin - management's preferred measure

of operating profitability - is expected to deteriorate from

20.8% to between 15% and just below 20% in 2024-25, according to

a statement.

For the financial year ending in September, the chipmaker

posted fourth-quarter revenue of 3.919 billion euros, broadly in

line with the 4 billion forecast in a company-provided

consensus.

Operating expenses of 220 million euros in 2023-24 were

mainly attributable to Infineon's "Step Up" cost savings

programme, which the company said it would continue to implement

in order to strengthen competitiveness.

Unveiled in August, the programme foresees 1,400 job cuts

and the relocation of a further 1,400 positions to countries

with lower labour costs.

Infineon's results are broadly in line with rivals, with

Intel ( INTC ) posting a quarterly revenue drop last month as

losses mounted at its contract manufacturing business.

NXP Semiconductors NV ( NXPI ) forecast fourth-quarter

revenue below estimates earlier this month, anticipating

uncertain demand and broader macroeconomic weakness in Europe

and the Americas.

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