Infineon raises 2022 outlook due to strong chip demand

Infineon raises 2022 outlook due to strong chip demand

BERLIN/STOCKHOLM (Reuters) – Infineon reported higher third-quarter revenue on Wednesday and raised its outlook for the full year as the automotive industry’s main chip supplier continued to benefit from the strong demand for semiconductors in a context of shortage.

The group reported a quarterly turnover of 3.62 billion euros, while the Vara Research consensus expected it at 3.42 billion euros.

Infineon has raised its 2022 revenue outlook for the third time by 500 million euros and now says it expects around 14 billion euros.

For the fourth quarter, it forecasts a turnover of 3.9 billion euros, above expectations of 3.65 billion euros.

Rival STMicro also posted better-than-expected quarterly revenue and raised its full-year revenue forecast.

Infineon has benefited from the global shortage of semiconductors, but several chipmakers have recently warned that demand is easing.

“Rising energy costs, commodity prices and interest rates, the ongoing pandemic and geopolitical uncertainties are all holding back economic growth,” said Infineon’s chief executive. , Jochen Hanebeck, in a statement.

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

The company also announced an operating profit of 690 million euros, also above expectations at 679 million euros.

(Reporting Kirsti Knolle in Berlin and Supantha Mukherjee in Stockholm; French version Diana Mandiá, editing by Kate Entringer)

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