Infineon Technologies (IFNNY)  is expected to post and earnings rebound Thursday as the German chipmaker and supplier to Tesla (TSLA - Get Report) and Delphi (DLPH - Get Report) continues to enjoy a boost from its automotive business.  

The Neubiberg-based company is expected to report net profit of €157 million ($169 million) on sales of €1.6 billion for the fiscal first quarter ended December, up 3.3% and 4% from the same period a year earlier, according to a consensus of 32 analysts compiled by FactSet.

Infineon's shares are at a record high, trading at €17.17 at 13:30 GMT. The stock has jumped 38% in the past 12 months, outpacing Qualcomm's rally of 18%, NXP Semiconductors's 31%, or Renesas Electronics's 31%.

The biggest expansion is expected to come from the automotive segment, with revenue rising to €693 million from €614 million, more than offsetting the declines anticipated for the chip card & security and other businesses.

Infineon has highlighted silicon carbide and insulated-gate bipolar transistor as key drivers in its automotive business, which is embracing the electric vehicle era in a market estimated to expand to $300 billion by 2020.

Silicon carbide is being increasingly used in the electrification of cars, and Infineon has said the acquisition of Wolfspeed, announced in July, will likely enable notable progress in the area. Meanwhile, IGBT switches electric power at a rapid pace in appliances including electric cars, and the company believes it enjoys a dominant position.

In addition to Tesla, the second biggest player in the automotive chip market and accounts for around 10% of the automotive market, counts Autoliv (ALV - Get Report) , Continental (CTTAY) , Bosch (BSWQY) , and Valeo (VLEEY) in its list of key customers. Infineon's products are used in assistance and safety systems as well as powertrains.

Infineon's products are also applied in security-related products such as, home appliances, mobiles devices, and industrial vehicles.

Key customers in the chip card & security segment, which offers products for use in identification documents, payment systems, and Internet of Things include Hewlett-Packard (HP - Get Report) , Microsoft (MSFT - Get Report) , and Gemalto (GTOMY) . Customers in the industrial power control segment, involved in home appliances and industrial vehicles, include Siemens (SIEGY) and Toshiba (TOSYY) .

Samsung (SSNLF) and Boeing (BA - Get Report) are among Infineon's customers in the power management and multimarket business, which is involved in mobile devices and charging stations for electric vehicles.