Good morning, everyone. Welcome to the conference call for analysts and investors for Infineon's 2026 fiscal 2nd quarter results. Today's call will be hosted by Alexander Foltin, Executive Vice President, Finance, Treasury, and Investor Relations at Infineon Technologies. As a reminder, this call is being recorded. This conference call contains forward-looking statements and/or assessments about the business, financial condition, performance, and strategy of the Infineon group. These statements and/or assessments are based on assumptions and management expectations resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks, many of which are partially or entirely beyond Infineon's control. Infineon's actual business development, financial condition, performance, and strategy may therefore differ materially from what is discussed in this conference call. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. At this time, I'd like to turn the call over to Infineon. Please go ahead. Thank you, operator. Good morning, ladies and gentlemen. Thanks for joining our springtime earnings call on which you have, as usual, our CEO, Jochen Hanebeck, our CFO, Sven Schneider, and our CMO, Andreas Urschitz. Following our proven pattern, Jochen and Sven will provide an overview on the market situation and divisional performance, key financials, and of course, our outlook with spotlights on Automotive and on our AI business. After that, we will start our Q and A session. The accompanying slideshow for the call is available at infineon.com/slides, and we will provide a PDF with Jochen's and Sven's introductory remarks in the course of the call on our website, namely infineon.com/investor. This is also your go-to place for a recording of this conference call, including the slides, a copy of our earnings press release, as well as our investor presentation. At this point in time, Jochen, over to you. Thank you, Alexander, good morning, everyone. About three weeks ago, the Artemis II mission successfully returned to Earth after 10 days in space. Radiation-hardened semiconductor solutions from Infineon supported the electric electronic backbone at the heart of the Orion capsule, an anecdotal proof of the breadth and performance of our offering. Back here on our planet, the market recovery is clearly gathering strength. We are seeing rising demand across several key verticals. At the same time, our planet is burdened by multiple geopolitical conflicts affecting our markets in various ways. These impacts notwithstanding near-term business indicators like order intake, lead times, cancellation rates, and stock levels are showing a clearly improving picture. Such picture differs by application. AI momentum is further strengthening with positive spillover effects in adjacent areas. Industrial markets are supported by rising power infrastructure-related demand. In Automotive, low customer inventories are triggering the start of a broader replenishment, leading to a rising order intake. E-mobility is still in difficult territory, whereas software-defined vehicles are seeing a globally positive development. All in all, our end markets are clearly improving. Preparing for a broad upcycle in an agile way and simultaneously setting the right strategic course remains paramount. For successfully implementing our strategy, the best fit organizational setup is key. Going forward, we will streamline our organization, going from four to three divisions to accelerate innovation to customer value further. More on this at the end of our divisional review, but let's now look at our group performance in Q2. The second quarter of our fiscal year 2026 was fully in line with guided numbers. Revenues amounted to EUR 3,812 million, 4% up from the previous quarter. Compared to the same quarter one year earlier, reported revenue grew by 6%. On a currency-adjusted basis, the annual growth rate would have been above 14%, given that the U.S. dollar was considerably stronger 12 months ago. The segment result for the March quarter came in at EUR 653 million, corresponding to a segment result margin of 17.1% compared to 17.9% in the quarter before. This development reflects the positive volume fall through as well as usual kicking in of price adjustments at the beginning of a calendar year. In addition, the decreasing Automotive high voltage business and related cost for its refocusing led to a significant profitability headwind. More on this in the automotive and later in the financial section. As a clear indication of the recovery momentum, o ur order backlog increased materially quarter-over-quarter by EUR 4 billion to around EUR 25 billion at the end of March. Currency effects had only a minor impact here. Compared to the end of March last year, our backlog is now around 25% higher, and it has kept growing in the currently running quarter. Where capacity allows, we are confirming customer orders now well into the next fiscal year. To our divisional review, starting with Automotive. Before looking at the March quarter, we proudly note Infineon's pole position among Automotive semiconductor providers for the sixth consecutive year based on data from TechInsights for 2025. With top one and top two positions in all major regions, our standing as the preferred partner of the Automotive industry is reconfirmed. We managed to further extend our lead over key competitors, notably in the crucial category of microcontrollers, where we expanded our market share year-over-year from 32% to 36%. To the March quarter. Automotive revenues ticked up to EUR 1.83 billion. Low single-digit price declines were offset by volume increases. The segment result of ATV came in at EUR 331 million with a segment result margin of 18.1%. The sequential decline of 400 basis points was due to two main factors: impacts from our business with high voltage components for electric powertrains, as well as the mentioned price adjustments. Generally speaking, the near-term outlook for the automotive market remains relatively muted. In its April update, market researchers S&P Global revised down its light vehicle production numbers for 2026. They are now more or less in line with our view. As you know, what matters more than car units is structural content growth. We see the adoption of software-defined vehicles accelerating. The trend towards e-mobility is intact. However, XEV penetration is progressing more slowly than predicted. In high voltage power parts for electric drivetrains, market pressures are particularly acute. High competitive intensity and capacity build-outs have caused prices to erode quicker than expected. The volume development and the pricing lead to unacceptable profitability in our Automotive high voltage drivetrain business. Against this backdrop, we are resetting the business. In addition to restructuring of our frame-based module backend operations in Warstein, Germany, announced last November, we are putting in dedicated measures to lower our operational cost base, and we are streamlining our portfolio. We use the opportunity to redeploy front-end manufacturing capacity towards our rapidly growing AI data center business, where demand continues to strongly exceed supply. In revenue terms, the affected high voltage drivetrain business will decrease by a low- to mid-triple-digit million EUR figure this fiscal year, already considered in our full year revenue guidance for ATV. Overall, the business corresponds then or now to around 7% of ATV. Regarding profitability, we expect the segment result margin of ATV in this fiscal year to be burdened by a low- to mid-single-digit percentage reflected in our guidance, driven by the combined effect of substantially reduced volumes and costs related to refocusing the high voltage business. Let me be very clear. Infineon remains fully committed to driving electro mobility further. We will not be chasing market shares, but instead our focus remains on profitable growth. This situation is isolated to high voltage power components for e-mobility. It is not at all affecting product categories like microcontrollers, analog parts, not even MOSFETs or sensors. Leveraging our unrivaled technology and manufacturing base for power as well as system understanding will enable us to reposition our high voltage e-mobility business for future success. In the meantime, Infineon keeps shapin g the proliferation of software-defined vehicles. The foundation of such cars is the combination of powerful and dependable computing, high speed secure data connectivity, and smart and efficient power management. Infineon is at the forefront in all these disciplines. As, for example, evidenced by the iX3, the first of BMW's Neue Klasse generation. It features AURIX and TRAVEO microcontrollers, BRIGHTLANE Ethernet connectivity solutions, as well as power management ICs, smart power switches, and eFuses from us. It has an electric drivetrain demonstrating how the structural Automotive trends are interlinked. We are also very proud to report additional design wins with the leading Chinese OEM Geely. Covering a high number of microcontrollers analog products, including PMICs and PROFETs, these solutions will be deployed across several applications, ranging from battery management systems to zonal control units in various vehicles models across the range of the Geely brands. This further underlines the strong value proposition Infineon delivers to its Chinese customers. To green industrial power. Revenues of EUR 403 million in the March quarter correspond to a significant sequential increase of 15% following a seasonally very weak first fiscal quarter. Growth came mainly from power infrastructure, HVAC, and home appliances. The segment result of GIP improved to EUR 47 million, equivalent to a segment result margin of 11.7% after 8.9% in the previous quarter. Fall through from higher revenues and lower idle costs more than compensated for negative price effects. With manufacturing PMIs in major world regions north of 50 and inventories now normalized, the sentiment in industrial markets is improving. A broader cyclical recovery is in sight. Customer order entry is picking up strongly while channel stocks approach low levels. Certain areas provide structural growth opportunities. Grid modernization requirements drive investments in related infrastructure and support growth in energy storage systems and transmission and distribution equipment. Continuously rising AI data center build-outs fuel demand for uninterruptible power systems, general power supply, as well as commercial HVAC for cooling. In some cases, semiconductors are poised to replace electromechanical parts, a trend for which Infineon is ideally positioned. For example, we are gaining strong traction in our business for solid-state transformers. We are generating first revenues in the running fiscal year and have built a robust design and opportunity funnel. The same applies to our solid-state circuit breaker business, which is developing well and provides a solid foundation for future growth. Let's now move to Power and Sensor Systems. In the second quarter of our 2026 fiscal year, PSS recorded revenues of EUR 1.26 billion, representing 8% sequential growth. This was mainly driven by our AI power as well as the radar sensor business. The segment result increased to EUR 257 million, driven mainly by higher volumes corresponding to a segment result margin of 20.4%. The increase of again 300 basis points compared to the prior quarter is a further step on the profitable growth path of PSS, strongly driven by our leadership position in AI power solutions. Demand on the back of ongoing significant investments in data centers and related infrastructure continues to be very strong. Currently, our AI business is in allocation, and we are converting capacities from other areas as well as ramping new ones as quickly as possible. Given the unabated momentum, we are reconfirming our guidance of dedicated AI power revenues of EUR 1.5 billion for 2026, as well as our indication of EUR 2.5 billion for 2027, irrespective of a weaker US dollar. The right to win in this market comes from the ability to optimize the entire power flow from grid to core. Infineon's unmatched portfolio breadth, combined with deep system understanding, quality, and delivery capabilities, help customers scale AI clusters and deploy increasingly sophisticated power architectures. A very important milestone in this context is the ramp of gallium nitride for AI data centers. Already today, we are shipping more and more into selected power supply sockets, and we see a rapid expansion of the design-in pipeline across multiple power conversion stages, including intermediate bus converters where gallium nitride-based products make a clear difference in performance. Also, for silicon carbide, the demand from AI-related applications is very strong, driving low double-digit growth for our overall silicon carbide business in this fiscal year. These developments confirm our excellent position with leading customers across the AI ecosystem, and we see our content opportunity developing favorably. Such content, meaning the dollar value of semiconductors for a given power envelope, is a function of the rack configuration, which can vary considerably. We are represented in almost all platforms across all relevant players in the industry. For this, we see a content range of $100 to $ 250 per kW, with today's average now increased to about $175. Over time, this number will see a certain efficiency effect, but on the other hand, it will be driven upwards by a higher vertical power module share and the emergence of solid-state transformers. This assessment replaces our EUR 8 billion-EUR 12 billion SAM market sizing for the end of the decade, as the gigawatt installation plans are quickly outdated and only revised upwards, resulting in a significantly higher market potential for us. Now to Connected Secure Systems, which recorded revenues of EUR 319 million, essentially constant quarter-over-quarter. Increasing volumes of IoT-related microcontroller and connectivity products were offset by negative effects in identification solutions. The segment result of CSS decreased to EUR 80 million, corresponding to a segment result margin of 5.6%. The continued evolution from IoT into Edge AI is expanding the opportunity set across multiple end markets. In this context, we are encouraged to see design win momentum building for our next generation of connectivity solutions, as well as secure low-power AI-enabled microcontrollers. Recent wins span various different application fields, from servers to security cameras, from wearables to in-cabin monitoring systems. In parallel, the broader adoption of AI is supporting increasing demand for our secure element solutions to safeguard data integrity in servers. Ladies and gentlemen, this concludes today's divisional overview, the penultimate on, in the current structure. Before handing over to Sven for our financial figures, let me introduce Infineon's future organizational setup to you. Starting from 1st of July, in other words, effective as of our 4th fiscal quarter, we will operate with three instead of four divisions: Automotive, Power Systems, and Edge Systems. This is the next logical step in our evolution from product thinking to deriving solutions out of our deep system understanding. Customers are demanding innovative system-level solutions at an even faster speed. To optimally address their needs and create more customer value, we need to reduce complexity and accelerate further. The key guiding principle for our new setup is a clear application ownership. The three divisions will be fully accountable for developing value propositions for their assigned focus applications. ATV will remain responsible for the secular automotive trends of software-defined vehicles and e-mobility, as well as all other automotive applications, including onboard chargers, which had previously been also addressed by other segments. Power Systems, or PS, will be in charge of all power applications outside automotive. This includes powering AI from grid to core, as well as renewable power generation and grid infrastructure, and power parts for consumer communication industrial applications. In essence, PS will be the combination of today's GIP and the power part of PSS, bringing together silicon carbide, and gallium nitride development under one roof, sharing related innovation, of course, with ATV. The focus of Edge Systems, or ES, will be on applications at the edge between the physical and digital world. The interplay of sensors, microcontrollers, connectivity, and security is a key area for future innovation and growth. Examples include Edge AI, robotics, medical wearables, industrial automation, and home appliances. The ES segment will be formed from today's CSS and the sensor and RF, as well as the USB connectivity portfolio from PSS. After closing of the pending transaction, also the sensor portfolio from ams OSRAM will become part of ES. The revenue split based on pro forma numbers for our FY 2025 would be roughly 50% Automotive, 30% PS, and 20% ES, thus giving each division sufficient economies of scale. The new setup will reduce complexity and streamline decision-making. With three divisions and clearer ownership of our focus applications, we need fewer alignments and can better leverage our deep system understanding. This will help us create more innovative products, win more opportunities, and deliver added value to customers faster, thus better supporting profitable growth. Now o ver to Sven for our key financial figures. Thank you, Jochen, and good morning, everyone. Those of you following us for a long time are aware that margins in our March quarter typically step down sequentially due to annual price adjustments becoming effective. For the quarter under report, the reported gross margin went from 39.9% to 38.7%. The adjusted gross margin decreased by 200 basis points to 41%. Therein, our high-voltage Automotive drivetrain business had a negative impact of about 1 percentage point, combining the fall through from lower revenues, idle cost increases, as well as charges related to the refocusing of the business explained by Jochen. From this, you can deduce that overall price declines were of a quite modest nature. On the OpEx side, research and development expenses downticked quarter-over-quarter from EUR 626 million to EUR 612 million. Our selling, general and administrative expenses declined. They went from EUR 409 million to EUR 379 million. Non-segment result charges for the March quarter amounted to EUR 195 million after EUR 267 million before. The financial result for the second quarter of our running fiscal year amounted to -EUR 68 million after -EUR 56 million in the prior quarter. Income tax expense for the March quarter was EUR 91 million, equivalent to an effective tax rate of 23%. Cash taxes amounted to EUR 109 million. Adjusting for PPA effects, the quarterly cash tax rate stood at 22% right within our expected corridor of 20%-25%. Our investments in property, plant, and equipment, other intangible assets, and capitalized development costs amounted to EUR 541 million in the March quarter after EUR 582 million in the December quarter. Depreciation and amortization expenses, including acquisition-related non-segment result effects, amounted to EUR 452 million. Our free cash flow in the second quarter of our 2026 fiscal year came to minus EUR 63 million, a slight improvement from the previous quarter's - EUR 199 million. Looking at our inventories, their reach went slightly down from 183 to 175 days quarter-over-quarter, including some safety stocks, inventories related to our manufacturing footprint optimization over the last years, and prebuilds. We are fully on track to meet our target for the end of the fiscal of around 150 days. The inventory reduction envisaged will have a positive impact on our free cash flow in the coming two quarters. That said, slightly elevated inventory levels are an advantage to capture growth in the coming upcycle and to be prepared in case of geopolitically induced turmoil. To our liquidity and leverage situation, which is affected by various successful financing transactions in connection with our recent M&A activities. First, we tapped the Eurobond market in early February with a EUR 2 billion issuance across three tranches. On the back of our rating of BBB+ stable, confirmed by S&P Global, and in a time window prior to the outbreak of the Middle East conflict, we were able to achieve favorable conditions. EUR 1 billion of the proceeds were used to repay a part of the initial bank financing of the Marvell Ethernet acquisition. EUR 500 million are earmarked for the pending acquisition of the sensor portfolio from ams OSRAM, which we expect to close still in this quarter. In addition, we are also procured new U.S. dollar funding, namely $700 million of term loans from banks, as well as $300 million from the U.S. private placement market. The total proceeds of $1 billion U.S. dollars have been used to repay the other remaining part of the initial Marvell Ethernet financing. In other words, we have successfully refinanced the entire Marvell Ethernet acquisition and pre-funded the ams OSRAM transaction. Furthermore, we paid out the annual dividend of EUR 456 million and bought back shares for employee participation programs for a total of EUR 178 million in the last quarter, a busy and eventful time for our corporate finance team. Taking all the financial activities mentioned and our free cash flow together, we arrived at the following cash and debt levels at the end of March. Our gross cash position stood at around EUR 2.2 billion, whereas gross debt came in at around EUR 7.9 billion. The resulting net debt amounted to around EUR 5.7 billion as of the balance sheet date. This translates into a gross leverage at the end of March of 2.2 times, slightly above our target. Overstated as we repaid an older U.S. private placement of $350 million at maturity at the beginning of April, so after the end of the last quarter, and will redeem a Eurobond of EUR 750 million on its due date in June. Net leverage corresponded to 1.6 times. Going forward, we expect these numbers to improve based on sequentially increasing EBITDA levels and land within the leverage target range. Our after-tax reported return on capital employed came in at 6% for the second quarter of our 2026 fiscal year. Before handing back to Jochen, a brief comment. As you have heard, we will operate and report in a new organizational structure starting from Q4 of our running fiscal year with three instead of four divisions. We will provide you with key financials for the current setup also for the September quarter, allowing you to model the full 2026 fiscal year in a consistent way. At the same time, we will provide adjusted historical data for the new setup on a pro forma basis in due course to you to enable relevant comparisons. Back to Jochen, who will comment on our improved outlook. Thank you, Sven. In general terms, the upcycle is gathering intensity, breadth, and speed as the recovery is broadening across more and more of our target markets. While geopolitical risk and macroeconomic uncertainties persist, fundamentals are improving. On the demand side, we see stronger bookings leading to a growing backlog. Visibility is getting better even beyond our fiscal year as customers' orders are stacking up nicely for the coming quarters. Channel inventories are at the lower end of target ranges. Customer inventories have largely destocked to healthier levels as well, in some cases even below that. In Automotive, we are pleased to see industry players bringing inventories back up to reasonable levels. On the supply side, more and more pockets of tightness are emerging, particularly in areas adjacent to booming AI product categories. Of course, the dynamics vary across applications. Overall, we believe a broader recovery is in sight. We are therefore raising our annual outlook even against an unfavorable currency development. For the currently running June quarter, as well as for the remainder of our fiscal year, we are changing the assumed U.S. dollar-euro exchange rate from formerly 1.15 to now 1.17. With this in mind, we expect revenues of around EUR 4.1 billion for our fiscal third quarter, corresponding to 8% growth quarter-over-quarter. By segment, for ATV, a slight revenue growth is predicted, whereas for each GIP, PSS, and CSS revenue should grow significantly. For the third fiscal quarter's segment result margin, we expect a high teens percentage l evel. Besides the fall through from higher volumes, we expect the evolution of prices in certain areas, notably AI and related product categories, to have a positive impact. In contrast, rising costs for energy and precious metals will somewhat dampen margin expansion. For the full year, 2026 fiscal year, we now expect revenues to be significantly up compared to the previous fiscal year, translating into a level of EUR 16-plus billion. As mentioned, this is absorbing an unfavorable U.S. dollar-EUR exchange rate assumption of 1.17 for the remainder of the fiscal year. From a segment perspective, PSS should grow materially faster than group average, driven by buoyant demands for AI power solutions. As the outlook for some industrial markets is also benefiting from AI, GIP is now expected to grow at moderate pace. ATV should see slight revenue growth driven by its broad product portfolio and the early adoption of software-defined vehicles, burdened by the decrease of the high-voltage drivetrain business. To give you an idea of the strength of the underlying automotive business, excluding the high-voltage business as well as the Ethernet business, which is for the first time consolidated for a full year and at constant currencies, ATV would see almost 9% annual growth this fiscal year, 2026. Lastly, for CSS, we expect revenues to remain stable year-over-year. Regarding profitability, the improved revenue prediction causes our expectation for the full year adjusted gross margin to go up to a low to mid-40s level after having guided to a low 40s level before. Our segment result margin will correspondingly benefit and land at a level of around 20% after having guided to a high-teens margin level previously. Particularly for the quarterly trajectory, positive contributors will be rising volumes and better than initially assumed pricing. Idle costs are expected to go down to an annual level of around EUR 650 million. Their cyclical part constituting a margin headwind of around 300 basis points. That said, we will manage idle costs and inventories in a balanced way downwards, as Sven explained. Offsetting these benefits to some extent will be an adverse currency development and rising input costs for precious metals, energy and freight resulting from the war in the Middle East. While we have baked in these direct impacts, our forecast does not include potential indirect effects from a protracted or escalating Middle East conflict or any other lingering geopolitical tension. Our investments in this fiscal year are expected to come to around EUR 2.7 billion. As we mentioned in our last call, this amount contains around EUR 500 million of pulled-in investments relating to powering AI to support steep revenue growth in the coming fiscal year. In this context, I'm happy to announce that we will officially open our Smart Power Fab in Dresden on the 2nd of July. The 300-millimeter fab will focus on state-of-the-art analog mixed signal and power technologies. Its completion comes just at the right time to boost Infineon's growth opportunities in highly attractive markets like AI, power, automotive and robotics. Returning to our outlook, we continue to anticipate a value of around EUR 2 billion for our depreciation and amortization this fiscal year. This includes amortization of around EUR 400 million resulting from purchase price allocations, mainly in connection with the acquisition of Cypress and Marvell's Ethernet business, which were recognized in our non-segment result. For the free cash flow, we are upgrading our guidance to around EUR 1.25 billion compared to the previously estimated EUR 1 billion on the back of an improved business outlook and the planned inventory reduction. Our adjusted free cash flow, net of investments into major front-end buildings and M&A transactions, is likewise expected to come at a higher level and amount to around EUR 1.65 billion after EUR 1.4 billion before, corresponding to around 10% of group revenues. For the sake of completeness, our guided numbers do not include effects from the pending acquisition of the sensor portfolio from ams OSRAM, which we expect to close towards the end of this quarter. Ladies and gentlemen, let me summarize. The second quarter of our 2026 fiscal year came in fully in line with our guidance. The recovery is gathering steam. We face an upcycle in several of our target markets. Momentum differs across applications. AI exceptionalism persists, benefiting also our industrial business. Automotive is directionally improving, driven by structural trends. The dynamic for software-defined vehicles is accelerating. The e-mobility trend is intact, yet unfolding slower than anticipated. High voltage drivetrain parts are exposed to significant market pressures. We refocus our business focus accordingly. Based on a brighter business outlook, we raise our guidance to significant revenue growth to EUR 16+ billion, low to mid-40s gross margin, a segment result margin of around 20% and adjusted free cash flow of around 10% of revenue. Thus, our FY 2026 will see a much stronger second half. Comparing the first half of calendar year 2026 to the second half, according to our current order book, the picture would be even brighter. Going forward, we will move from four to three divisions. With a streamlined setup and clear application ownership, we will deliver added-value customers faster, leading to more profitable growth. Ladies and gentlemen, this concludes our introductory remarks, and we are now opening the call for your questions. Seeing the long queue, we kindly ask you to limit yourself to one question and one follow-up. Operator, please start the Q and A session now. Thank you. Our question- and- answer session will be conducted electronically. If you would like to ask a question, simply press the star key followed by the number one on your telephone. If you are joining us today using a speakerphone, please ensure that your mute function is turned off. We'll take our first question from Sandeep Deshpande from JP Morgan. Please go ahead. Hi. Thank you very much for letting me on, and great results today. I just have a couple of questions. Firstly, on the AI business, Jochen, you said on your prepared remarks that your content is going to $200 per kilowatt. With this increase in your content compared to what you had previously guided the market to, why are we not seeing an increase in your AI revenue guidance for the year, or are you still capacity-limited? My second question is on the margin. You are guiding to this 20% margin now for the year, for the full year 2026. That implies a very big step-up in your margin in the fourth quarter, maybe 25%, 26%, some kind of big step-up is going to occur. Can we understand, what are the drivers of this big step-up in the fourth quarter? Is this a function of pricing or utilization? You previously told us about your underutilized capacity, your idle charges, and so how does that go through in that numbers? As well as whether we should be forecasting this sort of margin for Infineon into the future, given this big step-up. Thank you. Okay. The, G ood morning, Sandeep, first of all. AI, yes, you're right. We are indicating now instead of this $8 billion-$12 billion SAM at the end of the decade, to make things also easier for you, we are giving the guidance on our content per kilowatt, and that is in the range of $100-$250 per kilowatt, and the rest is the assumption of the installed gigawatt. The average is $175. The range is created mainly by the adoption of vertical power deliveries. Solutions with vertical power deliveries obviously at the upper end of that range. Important is also for me that you understand this $175 is today's number. Over time, that number will change somewhat by efficiency, but then mainly by the adoption of more vertical power deliveries and the inclusion of the SST part. That number includes now also SST, but as of today, that number for SST is obviously zero. Your question was about the EUR 1.5 billion this year. First of all, please note that we have absorbed the FX. The content behind that number structurally is very dynamic because these customers are very dynamic. Of course, there's also the pricing element in there. I would like to see first a better or more detailed view that we can deliver supply chain-wise, as we are in allocation, this number before I think about a higher number to communicate. It is supply chain and structure, and of course, pricing, which constitutes the dynamic behind this EUR 1.5 billion. Now, over to Sven on the 20%. Hi, Sandeep. On the profitability, maybe I take that one because I understand many of you have that question, and expand a bit. If you look at the quarterly development of the revenue, we started with EUR 3.66. Now I'm excluding currency, it's all reported. Then EUR 3.8. Now you see EUR 4.1, which is a significant increase of 8% quarter-over-quarter. In order to achieve our significant growth rate on the full year, which we have given you now a little bit more information on 16+, we indeed need another stronger Q4, which is also in line with seasonality. Just looking at the numbers, I mean, you can easily calculate that EUR 4.5 billion, EUR 4.6 billion would be a number to come above the EUR 16 billion threshold. This is the current view of our upcycle, which was explained. On the back of that one, yes, indeed, the margins in Q4 would not be in the high teens range, but they would definitely be in the low to mid-20s in order to come to the around 20% for the full fiscal year. That's our current assumption. Now, you asked where is it coming from. I mean, first of all, there is a positive volume effect. The fall-through is clear. There is, Jochen said it already, the dynamic development of AI. I mean, you can assume that the Q4 number on the powering AI business is higher than the Q3, is higher than the Q2 number. There is a profitability component. You have seen PSS developing 300 basis points quarter-over-quarter now for two quarters. If you just continue with that, you would be around the 25% level for PSS in Q4. There's also some, as we said, carefully in our prepared script, the longer the allocation lasts on AI and adjacent markets, the more positive dynamic for pricing could be also visible still in the remaining quarters. I don't wanna guide now for 27, but yes, our current view is we are going out of that fiscal year with a very strong Q4. Thank you. The next question comes from the line of Andrew Gardiner from Citi. Please go ahead. Good morning. Thank you very much for taking the question. Sven, I know you just said you don't want to guide on fiscal 2027. If I come back to Jochen, your final statement in the prepared comments, you were talking about the calendar second half being having a much brighter outlook than the calendar first half. I mean, as you've just walked through some of the moving pieces into the September quarter, but also, you know, sort of leaning therefore into the December quarter, can we take it that the December quarter, based on the backlog today, is looking meaningfully stronger than normal seasonality? Then I've just got a follow-up on the AI comments. Yeah. Hi, Andrew. I mean, you are trying it always in a very smart way, I know, to get something out of us which we don't want to say. I mean, from today's perspective, looking at the order book strength, looking also at the orders going well into next fiscal year, as we have said, I would say there is a better than seasonal Q1, and from today's perspective, Q1 looks even better than the Q4. It's very early to really give you more accurate numbers. Stay tuned for the August and the November call. So far, as we said, more and more of the end markets are going into the up cycle, that's not only AI. Okay. Understood. If I can just come back to some of the AI comments. Jochen, you were talking about sort of the dynamic customer environment and sort of the things that they're asking for, and you talked about GaN and SiC. In listening to some of your competitors', conference calls over the last couple of weeks, it feels like some of them are having to make more specific architectural or technology choices in terms of their, what they're offering customers. I think a point that Infineon has long been making, certainly to us in the financial markets, but obviously to the customers as well, is that you've got the range of technology, SiC, GaN, silicon modules, et cetera. You can, you can be flexible with them. Is there increasing evidence of sort of the success of your approach? You know, what are you hearing from customers? You know, how do you feel like you're facing up to the competition given your breadth relative to what some of them may have? Yeah. I think it's absolutely the value proposition Infineon brings to the table, our broad technology spectrum. You hinted at silicon carbide, gallium nitride. I would add the analog parts. I would add the assembly technologies on the module side. Further on, of course, also system understanding, how to which topology to use. Also the 800 volt DC versus three phase, all the way up to SST. I think Infineon is the one-stop shop. That doesn't mean that others will gain some business, but we feel very comfortable that this is our application, and we will be the driver in the market. It's demanding. The customers are very demanding. Technically, it's very demanding. We will be able also to supply in-house manufacturing Dresden Module 4. What comes more and more that particularly U.S. customers ask for non-China, non-Taiwan supply chains, which we can offer. Plenty of aspects which speak in favor of Infineon. Thank you both very much. We now have a question from the line of Didier Scemama from Bank of America. Please go ahead. Yes. Good morning, gentlemen. Thank you for taking my questions. My first question is on the data center business. I think in the past you had mentioned that you had about EUR 500 million of traditional server CPU power management business. Just wondered if you could, you know, give us an update on that business. You know, I think recently, last night, in fact, AMD doubled the server CPU TAM for 2030 from $60 billion-$120 billion on the back of agentic AI accelerating pace. I just wondered if, you know, that EUR 500 million has been upsided. You know, how do we think about that for 2027? Thank you. Yeah. Very good question. Honestly, that business is likely to go through the roof next because indeed CPU inference is obviously a slightly different segment of the market other than GPU. We are well established historically, and we hear the respective customers asking also on that end for significantly more. Okay. Thank you. If I do the math right on your, you know, $175 million of content per gigawatt, that implies in Euro terms you're shipping about 10 gigawatts of capacity this year for AI data center. Next year, you know, if you say the same content about, you know, 16 gigawatts of capacity. That would give you a very high market share. Is that the way do you actually think about these things or is it, you know, are you thinking about it differently? Related to that, I appreciate the content is very difficult to nail down because there are other things, different moving parts, different architectures, different materials, et cetera, especially as we look into the future. Even at the EUR 10 billion, the midpoint of your guidance, and EUR 250 million per gigawatt, that's 40 gigawatt capacity addition, which is, I would say, well above any consensus that is out there. You know, what's the implied gigawatt capacity addition you've got in your EUR 8 to EUR 12 billion TAM assumption? Thank you. Here, I really would like to be very specific. Forget the EUR 8 billion- EUR 12 billion. There are so many numbers out there in terms of gigawatt. That's why we refrained from giving now a SAM market guidance. So the number EUR 8- EUR 12 billion is no longer valid because there are a number out there for the end of the decade, which much higher gigawatts, and that would result in a substantially higher SAM number. As the range is so broad, we leave it to you and give you the number on the dollar/kilowatt. In terms of market shares, I still think that the best guidance I can give you is that the 30%-40%, which we have traditionally in data center, is for me the minimum. Then let's see. Again, highly dynamic environment from platform to platform. Therefore, honestly, I even feel proud that we give you the guidance for next year. Our indicative number for EUR 2.5 billion next year, very dynamic. Again, it's indicative for next year. Not the maximum, but please understand that it's also, for us, difficult to predict that market. No, very clear. Sorry, I'm not quite sure. Well, I think you don't want to give the answer, but I'm going to ask again. Of the EUR 500 million for this year for server CPU power management, you know, what sort of level do you think would be right for next year? Do you think you should combine these two numbers to make it more comparable to what your peers are disclosing, which typically, you know, combines DC and AI revenues together? We are right now in discussion with these customers on what they need, how much we can deliver. In addition, obviously, we are already in a tight situation on the one hand. On the other hand, the Dresden facility comes in at the perfect moment in time. I cannot give you a new number on this 500, but any new number will likely be higher, driven by the one statement you quoted or even the Intel statement. We are just in the process of working on through that. All right. Thank you so much. The next question comes from the line of Johannes Schaller from Deutsche Bank. Please go ahead. Yeah, good morning. Thanks for taking my question. Jochen, you mentioned in the auto business there is a bit of restocking dynamic building up here. Just wondering if you could share with us your anticipation, kind of how long that may support the momentum in the auto business. Also, if you could zoom in a little bit on China and your assumption for the full year. I mean, you're still winning really good deals here, obviously against that, the underlying market is softer. How should we think about China auto overall for this year? Then just a very quick clarification because we get a lot of questions on your comment just on Q1. When you say higher than Q4, you mean in absolute revenue terms or year-on-year growth? That would be helpful. Thank you. Hello, Johannes. Good morning. On Automotive, the restocking is what we see in our order book, right? We don't, it's not yet in revenue or only the first innings are in the order book. We see the order book for Automotive growing substantially also for this year, but particular for next year. We see that predominantly coming from two regions, China and Europe. Of course, also U.S. and Japan. The two biggest buckets for the auto backlog growth in Automotive is China and Europe. That gives me confidence that we are well-positioned in China. Again, also in China, I talked about the high voltage business. This is certainly a challenge. But beyond the high voltage business for inverters, if whether you take MOSFETs, whether you take analog parts, whether you take microcontrollers, whether you take sensors, we are doing very well in China. Good example of that is the Geely design win, which I highlighted. The second question I pass on to Sven. Yeah. Hi, Johannes. Thank you for asking the question in a more precise way. My comment was mainly about the seasonality as it was also asked. The average seasonality is -5%, -6% for Q1, and we expect from today's perspective a much less pronounced seasonality. I'm not yet in a position to give you absolute revenue numbers for Q1. That is a bit too early. That is clear. Thank you. We now have a question from the line of Lee Simpson from Morgan Stanley. Please go ahead. Great. Good morning. Thanks for fitting me in. I just wanted to ask a two-part first question really on new products. It was interesting, I thought, that you opened the call, Jochen, on RadHard products for the Artemis launch. You know, we have heard from peers that they lean explicitly on BiCMOS IP and of course, packaging technology. Just wondered what it was that you saw as competitive advantage for yourselves in those products. Maybe related to new products, you did tease us with the idea that solid-state transformers would be introduced to data centers into server racks. I'm just curious as to the function of a solid-state transformer, perhaps in first stage on a server rack. Thanks. Hi, Lee. First of all, the RadHard business is a business that comes out of our HiRel business unit, w hich business we have successfully entertained for quite some time now in satellites, also somewhat in defense. You're referring to more of this LEO satellites. To be honest, that's a business. It indicates a lot of growth. I'm not so sure about the margin, to be very honest. Do not expect us now to go into that business big time. Maybe the one or the other adjacent topic, margin-wise, I'm not so sure. On the SST side, we are fully in. We believe in this trend. Our customers believe in these trends. We are shipping initial volumes. Of course, that is also as it's part of a power infrastructure. There's a regulatory aspect to it, which needs to be overcome or needs to be addressed. That will take some time. I still expect the SST to take off when exactly and where maybe earlier, even in China than in the Western world. As it is again, a regulatory topic that needs to be addressed by the system guys. We are ready. We have the products, and we are working on about 20 projects as we speak. Great. That's very clear. I just wanted to maybe follow up, if I could, on the realignment of the high voltage business for Automotive. And what's really different from last quarter? Because you did explain, a shift away from supplying, particularly IGBTs, into inverters for regions such as China, and favoring that capacity for the data center. Has this been an acceleration of that shift? And maybe could you just again outline some of the details, particularly as impact on margin for the next couple of quarters? Thank you. Yeah. The trend is visible already for several quarters, that's why we took already action with the restructuring of the Warstein operations and so on and so forth. What we wanted to achieve with this guidance is to give you a clearer picture of the scope. First of all, it's not all power components. Not at all. The MOSFET business in Automotive is running very good margins. It's really the high voltage part for inverters. The IGBTs are now by now available in China. No surprise because we also shifted our R&D years ago already to silicon carbide. It's really more the combination of lower than expected volumes or decreasing volumes like in the U.S., a stagnation somewhat within China, price pressure because market participants are partially very aggressive, picking up any sort of business. By the way, on silicon carbide, this is an effect not from Chinese competition, but from non-Chinese competition. For us, this is an area which we really need to reset, but we wanted to give you a precise scope, meaning it came down from above 10% of Automotive now to 10%-7% of Automotive. It constitutes a drag on ATV margin from low to mid-single digits. I think we will need likely the biggest step will happen this year. Also next year we will have an impact on automotive. We wanted to give you also the background so you can model it. It's not at all a weakness of the automotive business in general and also not in China. Maybe Lee, Sven here on the margin to be even more precise. We said that there is a 200 basis point quarter-over-quarter margin headwind from the high voltage business on Automotive. If you take the EUR 1.8 billion, 2%, you are at close to EUR 40 million. This is exactly what we have included on the segment results side. This is the fall through from lower revenues. This is change in inventory reserves, and we have also put some money into the non-segment result for restructuring. That is very clear. Thank you very much. We now have a question from the line of Janardan Menon from Jefferies. Please go ahead. Hi, good morning. thanks for taking my question. I just want to follow up on the AI power side, especially from a capacity point of view. Given that, you know, as you're answering to Didier's question, that demand is increasing quite sharply on the CPU general server side. Also you're saying that the number you're looking at potentially for 2030 is well above the EUR 8 billion-EUR 12 billion that you had previously indicated. You know, how are you thinking about your capacity planning beyond FY 2026? You had pulled in EUR 500 million for this year. I mean, obviously you're not guiding for CapEx, I'm just saying, are you accelerating the ramp of your Dresden fab further into 2027, 2028 to address this? You know, are you already taking those measures even though you're not telling us that? Do I understand from your comments that the EUR 2.5 billion is not the max, that there is a headway for you to exceed that number when you come to next year? The second question, it's clearly a yes. It's indicative number, the 2.5. Again, structure matters a lot, pricing matters a lot, so it's not the max number, but I will not give a max number out at this moment in time. On terms of capacity, you are right. I mean, Dresden comes in at the perfect moment in time. The cash is spent on the building and infrastructure this year, and then we scale it with the equipment, and we get here, book the slots for next year, in order to increase revenue capabilities further on. Beyond that one, in Villach, we have still the possibility to convert existing clean room from 6 and 8 inch to 300-millimeter by moving 8 inch to Kulim. That is an option. Of course, we also, if it comes to silicon carbide, which is partially driven by AI, another growth driver is going to be the resurgence of renewables in light of energy resilient supply. If that comes together, we could finish our Kulim 3.2 plant. Remember, the base plate is done. That would be also in a capital efficient manner, ways to expand rather quickly our front-end capacities and the back-end capacities then accordingly, where we are. Thank you To a good extent outsourced, in terms of AI. Yeah. Just a quick follow-up on pricing. You sort of alluded that if this kind of allocation continues, then the industry becomes tighter, and pricing could move up further. You know, you and pretty much all your peers put in a round of price increases in April, from what we can understand, from what has been generally reported. Are you suggesting that you could be seeing yourself increase pricing once again before the end of the year, and that's something that both you and think your peers could be doing, which would have a positive effect on 2027 as well? Thanks. Hello, Janardan. Already in our last earnings call, we have been talking about supply constraints in particular in AI power business that had started to impact also adjacent areas to then also having an effect on more favorable pricing environment in those. We have, as you rightfully said, informed our customers about increases to come, which now are effective from the running quarter onwards going forward. As this upcycle effects more and more affect broader parts of the market, we expect cyclical dynamics also to accelerate, including pricing to improve in the coming quarters. Having said that, environment definitely is changing in that regards, and we will see where that brings us then also going forward in terms of broader pricing. Definitely, talking about the price range that we gave for the current fiscal in between medium to low single digits. That figure is trending more towards the lower part of the bar. Understood. Thank you so much. The next question comes from the line of François-Xavier Bouvignies from UBS. Please go ahead. Thank you very much. I've one question on the capacity again for 2027. This EUR 2.5 billion for 2027, is it a capacity number that you see right now, or it's more demand number? Could you do still materially higher than this EUR 2.5 billion if the demand were coming through? Yeah. Good morning, François-Xavier. Again, it's an indicative number. It depends a lot on the structure. Obviously, a vertical module contains the same silicon as a lateral one, but is asking for a much higher price. Of course, we are basically running a task force to beef up capacity. Please accept that I will not come up now with a max number. We are working on clearly to beef up that number, the EUR 2.5 billion. That's very clear. Thank you From a capacity point of view. Thank you again. Regardless of the pricing point, or regardless of the pricing. Mm-hmm. Okay. Thank you. Maybe on the, you know, content per kilowatt that you flag $100-$250 per kilowatt. I mean, it's a big range given all the uncertainty around the market. I was wondering if you are thinking about this range, is it fair to say that the inference ASICs, you know, AI is more on the low end of this, you know, content per kilowatt when the training and GPU are more on the high end? Is that the right way to look at it as well from a mixed perspective? Directionally correct. Our content is almost, corresponds pretty much to the power of the processor. That's first order effect, right? I also said that the latest, let's say, wave, on CPUs and, these sort of, products we are still working through it with our customers to see what is really the demand, get the orders, and then, assess it. That's I would call that whole wave now work in progress. François-Xavier. Great. Thank you Thank you very much. François-Xavier, Yep. I think you and your colleagues have grilled us so many times that because we only said it's north of EUR 100, now please give us the, give us some applause that we are now giving you not only a range, but also an average point. I think that's a lot of precision in this very dynamic environment. That's true, and we appreciate that, to be honest. Thank you. The next question comes from the line of Joshua Buchalter from TD Cowen. Please go ahead. Hey, guys. Thanks for squeezing me in. You know, as we think about sort of this year being capacity constrained, can you maybe talk through some of the implications of that and, you know, are there changes you're making internally from a mix standpoint, you know, to favor maybe more vertical power? Any competitive implications, like is this allowing others to sort of enter the market, given you're not able to fully service all the demand that you're seeing? Thank you. Yeah. I am not quite sure whether I understood the question correctly, so please, tell me. What we are doing from a portfolio point of view in front-end capacities, as said, we see the weakness in the high voltage e-mobility part. We redirect these capacities to AI. There are some spots in GIP which are strongly growing, others less so. Of course, we take that also as an opportunity for margin optimization. Then whether we are selling a vertical module or a lateral module, that of course depends then on the architecture of the customer, and here, we are trying to serve both. Also the supply chain beyond the front end, so back end, is obviously considerably different, and we are trying to maximize here the output given the fact that we also have some limitations in back end. Is that what answer to your question, or did I miss a point? No, I think that mainly got it. I guess for my follow-up, on the high voltage silicon headwinds, you know, should we think about those being mostly complete this year and then it's a smaller headwind next year? Maybe you could speak to, you know, your confidence that it's gonna be remain relegated to just the high voltage IGBTs and that, you know, why you're confident that we won't have similar pricing issues longer term on the silicon and silicon carbide MOSFET side. Thank you. I said high voltage. The pricing pressure is on the silicon side and on the silicon carbide side. I also mentioned that on the silicon carbide side, again, on the inverter in the car, the pricing pressure comes from Chinese competition on the silicon side. On silicon carbide, it comes not from Chinese players because they are not yet there, but from Western players. It doesn't extend at all to other product families of Automotive. The closest you would think of is MOSFET, but here I can tell you that the MOSFET business of Automotive is clearly above our target operating model. We have here really a unique breadth and width of our portfolio and a very high economy of scale. I think that is a very good position. Yeah. IGBTs, again, are good enough in certain solutions and we did not invest into R&D, a s we have shifted the R&D on silicon carbide, and the silicon carbide for the Infineon group is growing as we are having lots of opportunities here also in AI, but also in power infrastructure. Okay. Thank you for all that color, and congrats on the results. Yes. We now have a question from the line of Stéphane Houri from ODDO BHF. Please go ahead. Yes. Hello, good morning. I also have a question on the Automotive business and notably on the evolution of the margins. I understand that you had some exceptionals during the quarter, and that you also said that the backlog is improving and that you have a better visibility on automotive. What is the visibility that you have on the improvement of the operating margin in the Automotive business going forward? Is it going to be quick or not? Looking maybe longer term, to your about your 25% EBIT margin model, at what point do you think that Automotive can come back to it? It's still 50% of your business, so it really depends a lot on the Automotive ability to improve the margins also. Thank you. The Automotive business will be a drag on the margin, as I said, for the next two years, mainly this year as we are redirecting the capacities and restructuring, but somewhat also affected next year. Let me put it like that. If I take out the idle, the cyclical idle cost and the high voltage business, then Automotive would be clearly at 25%. The restocking will lead to a higher volume over time. Again, we indicated that the order book for the second half of the calendar year is particularly strong also for Automotive. I would expect that the idle costs come down over time. We have to work on this high voltage area, and then everything will be in shape for Automotive. Okay. Thank you very much. The next question comes from the line of Jakob Bluestone from BNP Paribas. Please go ahead. Hi. Good morning. Thanks for squeezing me in. I had a question on your order backlog. A year ago, your backlog was about EUR 18 billion, and looks like this year you'll do about EUR 16 billion plus of revenues. The backlog's now at EUR 25 billion, implying quite strong revenue growth to come. I was just wondering, is there something in the composition of that backlog that has changed? Are there more longer-term orders in there? Maybe I mean, you've mentioned a number of times the auto backlog, but just sort of interested if you can give any kind of mix in terms of divisions on that backlog. Thank you. If I plot the Automotive backlog over lead times, all categories are going up. It's of course AI related, it's also Automotive related, it's also GIP, so power infrastructure related. Coming back to the Automotive side, as said before, 50% of what we incurred over the last two months came in for next year already, 30% about for this year. It feels like or it definitely looks like a very healthy build-up of our backlog, especially across these three major themes, which I just mentioned: AI, Automotive, and power infrastructure. Perfect. Thank you. Last question, please, operator. We now take our last question from the line of Sébastien Sztabowicz from Kepler Cheuvreux. Please go ahead. Yeah. Hi, everyone, and thanks for taking my question. First one would be on the fab loading. Today, where are you standing in terms of fab loading, and what do you expect for the next two quarters for fab loading? When do you expect to be back to full capacity? Is it possible to reach full capacity already in 2027, or is it a bit too early? The fab loading is particularly high in the 300-millimeter fabs. They are basically fully loaded. Front-end is around 90%. Backend is around 75%. We still incur EUR 650 idle this year. We think that this will decrease. On the other hand, please also remember we want to reduce our inventories in order to beef up our cash flow. Of course, we will reduce idle, I think, significantly next year, but too early to quantify. Okay. In China, I know that you have a stronger competitive pressure from Chinese competitor on silicon IGBT, and you have also pressure on silicon carbide. How do you see the competitive landscape in the rest of the business from the Chinese competitors, notably around microcontroller, sensors, connectivity? Have you seen any kind of ecosystem building up there over the past few months or so on? How do you see the deal activity on all these growing areas? Thank you. Yeah. Really local competition in China is really particularly on IGBT again, they caught up as we have focused on silicon carbide. Once it comes to higher reliability, and that's not, you know, only automotive but also power infrastructure, once it comes to higher power, I think we are still also the choice for high voltage. If you talk about other categories, I'm pretty sure we are winning, for example, as we speak, Automotive MOSFET market share in China, as customers realize that quality matters in these sort of applications. In terms of microcontroller, let's say, we do not really feel yet competition. Of course, we stay paranoid and we look around every corner where things might happen, but right now it's confined to IGBT to the largest extent. Of course, we are acting on that. Maybe, Andreas, you want to add on what we are doing in China, for China in order to position us well in the local market. First, local innovation. We are tightly working on the one or the other customization element, be it on product level or application level. Second is then also local operations. We are about to further strengthen then also our ability to service customers logistics, locally. The third point is then also local manufacturing. For selected technology and product buckets, we have a strategy, and that has been shared with you a couple of times in the meantime, where we say we bring those products into local manufacturing sources, if you will. Typically, these are generation today minus N kind of products in order to supply the China market in China for China. Fourth point I want to mention is then also, our strengthening of local ecosystem, what we call. We're working together with quite a comprehensive network of design houses, if you will, value-added resellers that then, together with Infineon and Tier 1, Tier 2, and OEMs form, so to say, ecosystems that drive innovation in key applications for Infineon together with Chinese market players then also going forward. Thank you. All right, everybody. We are reaching almost the length of a full football match here. We are now concluding our fiscal second quarter conference call. Thanks for all your questions. To twist an old saying for the IFX stock, buy in May and stay. Further questions, please contact the IR team. Take care, enjoy springtime, and have a good day.