Infineon’s quarterly revenue beat, boosting 2022 outlook for chip demand

A general view shows the clean room of German semiconductor maker Infineon’s new specialized chip manufacturing facility in Villach, Austria, September 16, 2021. Picture taken September 16, 2021. REUTERS/Alexandra Schwarz-Goerlich

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

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

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

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Infineon had benefited from a tailwind from a global semiconductor shortage, but several chipmakers have recently warned that demand is slowing.

“Increases in energy costs, commodity prices and interest rates, the ongoing pandemic and geopolitical uncertainties are holding back economic growth,” said CEO Jochen Hanebeck.

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

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

($1 = 0.9824 euros)

Reporting by Kirsti Knolle in Berlin and Supantha Mukherjee in Stockholm. Edited by Maria Sheahan and Terje Solsvik

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