German chipmaker Infineon posted strong first quarter results on the back of strong demand for Smartphones. Net profit for the quarter was reported at €232 million (£198 million, $319 million), more than 300 percent growth from last year’s €69 million.
The company revised its profit outlook upwards for the year hoping the automobile sector will pick up this year.
Infineon manufacture smart chips for cars, phones, electronic passports and home appliances.
“Going forward, we expect to grow faster than the market and see another quarter of revenue growth with consistently high margins”, said Peter Bauer – Chief Executive, in a statement.
Infineon was spun off from German firm Siemens and started operating as a separate entity from 1999. Its Wireless Solutions Business was acquired by Intel in August 2010 and the $1.4 billion deal was closed yesterday.
The Infineon Wireless Business unit will now be known as Intel Mobile Communications and will operate as a separate business unit in Intel’s Architectural Group “to enable continuity of existing customer sales, projects and support, including ARM-based products”, Intel announced yesterday.