Infineon Technologies, (IFNNY) a German chipmaker whose customers include Tesla (TSLA) and Apple (AAPL) , said the automotive market will lead group sales growth as car makers expand their electric vehicles ranges.
The Neubiberg-based company on Wednesday said it expects 6% group sales growth in the 2017 fiscal year and an average 8% revenue growth in the "years to come." Its automotive business will "grow at a substantially faster rate" than the average 6% for the overall company, it noted.
"Despite the slightly slowing down growth in unit vehicles, particularly in the U.S., we do see continued growth in content as well as our gain in share, as we are strong in the fastest growing applications in automotives," Infineon chief marketing officer Helmut Gassel told analysts and investors after the company reported below-forecast fourth-quarter earnings while boosting its gross margin estimate for the 2017 fiscal year.
Two automotive technologies stole the spotlight in the teleconference as Infineon management claimed it is well-prepared for an electric car era which leading car makers including Volkswagen (VLKAF) , Daimler (DDAIY) and Toyota Motor (TM) are preparing for. For example, Volkswagen has said it aims to launch over 30 fully electric new vehicles across the group by 2025.
One of the technologies Infineon highlighted was silicon carbide, which is being increasingly used in the electrification of cars.
"We [have been] active in silicon carbide for quite some time and we are very active in the electric drive train market. We have a very good understanding of the drive train and we see currently that the silicon solutions are by far dominating," CEO Reinhard Ploss said.