Infineon’s quarterly revenue beats expectations, boosting 2022 chip demand outlook

The picture shows the clean room of German semiconductor manufacturer Infineon’s new specialized power chip factory in Villach, Austria, on September 16, 2021. Photo taken on September 16, 2021. REUTERS/Alexandra Schwarz-Goerlich

BERLIN/STOCKHOLM, Aug 3 (Reuters) – Infineon (IFXGn.DE), a leading microchip supplier to the automotive industry, on Wednesday reported higher third-quarter revenue and raised its full-year outlook as it continues to Benefit from a global semiconductor shortage.

The Munich-based company’s third-quarter revenue rose to 3.62 billion euros, beating expectations of 3.42 billion euros in a Vara Research poll of 20 analysts.

For the third time, Infineon raised its 2022 revenue by 500 million euros ($509 million) to about 14 billion euros, and expects fourth-quarter revenue of 3.9 billion euros, above expectations of 3.65 billion euros.

Rival STMicroelectronics also reported better-than-expected quarterly revenue and raised its 2022 revenue forecast.read more

Infineon has benefited from tailwinds due to a global semiconductor shortage, but several chipmakers have recently warned that demand is slowing.

“Energy costs, rising raw material prices and interest rates, the ongoing pandemic and geopolitical uncertainty are all holding back growth,” CEO Jochen Hanebeck said in a statement.

“In some consumer-oriented end markets, demand has softened recently,” he said.

The company also reported an operating profit of 690 million euros, beating expectations of 679 million euros.

(1 USD = 0.9824 EUR)

Reporting by Kirsti Knolle in Berlin and Supantha Mukherjee in Stockholm; Editing by Maria Sheahan and Terje Solsvik

Our standard: Thomson Reuters fiduciary principles.