Infineon Technologies AG reported third-quarter revenue that rose from a year earlier and announced plans to expand a plant in Malaysia as it bets on burgeoning demand for semiconductors in the automotive industry.
(Bloomberg) — Infineon Technologies AG reported third-quarter revenue that rose from a year earlier and announced plans to expand a plant in Malaysia as it bets on burgeoning demand for semiconductors in the automotive industry.
Revenue for the three months ending in June rose 13% from a year ago to €4.09 billion ($4.5 billion), the German chipmaker said in a statement on Thursday. That compared to analysts’ estimates of €4.05 billion
Renewed demand for semiconductors from carmakers has been a key benefit for the company, as the automotive sector accounts for about 46% of its sales. Infineon is also trying to tap into the green transition, developing chips for renewable energy generation and infrastructure.
Separately, the company said on Thursday that it would invest as much as €5 billion in the next five years to expand its plant in Malaysia to produce power chips that feed the automotive industry. The company said that demand from carmakers would help the plant produce potential revenue of about €7 billion by the end of the decade.
Infineon raised its guidance in May for revenue in the 2023 fiscal year due to demand from carmakers that continues to drive sales for the company. The German chipmaker is trading 35% higher year-to-date, buoyed by this demand.
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The company is also tapping into European efforts to onshore, and received subsidies from the German government to build a new semiconductor factory in Dresden. Infineon plans to invest €5 billion in the project and is applying for approximately €1 billion in public funding.
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