Infineon expects its 2022 revenue target to be about $14.7 billion as chip shortages persist

2022-06-01 0 By

Infineon, a leading supplier of microchips to the automotive industry, expects its 2022 revenue target to be about $14.7 billion, as it believes the global semiconductor shortage will continue this year, Reuters reported.”So far, demand for semiconductors has far outstripped supply,” the company said on Thursday as it reported first-quarter financial results.”Electrification and digitization continue to drive significant growth in our target markets.We expect the supply situation in some application segments to remain tight this year, “Infineon said.Infineon, the automotive industry’s leading chip supplier, is benefiting from a growing shift by carmakers to electric vehicles and demand for chips used in consumer appliances and industrial equipment.Infineon now expects its 2022 revenue to rise to about 13 billion euros ($14.7 billion).Infineon’s full-year revenue forecast has a margin of error of plus or minus 500 million euros.At the midpoint of the revenue range, Infineon expects its segment result margin — a measure of operating profitability — to be about 22 per cent, higher than the current average analyst estimate of 21.4 per cent.Infineon’s first fiscal quarter, which runs from September 2021 to December 2021, achieved a profit margin of 22.7% on its classified results, beating market expectations of 21.0%.(Proofreading/Seven seven)