The global shortage of semiconductors gave Infineon (IFX.DE) a boost, as the leading supplier of microchips to the auto industry reported a 22% rise in second quarter revenue.
The company saw revenue grow to €3.3bn (£2.82bn,$3.46bn) in the second quarter as operating profits reached €618m.
Europe’s largest chipmaker now expects its 2022 revenue to be around around €13.5bn. The Munich-based company also said it plans to invest up to €2.4bn this financial year.
“Infineon continues to perform well within an increasingly challenging environment,” said CEO Jochen Hanebeck.
The company has been a benefitted from the global shortage of semiconductors.
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The COVID pandemic caused an acute shortage of semiconductors as factories were disrupted at the same time that demand for consumer electronics took off.
Experts predict that this chip shortage will last into 2024.
"Global uncertainties, in particular the war in Ukraine and the further course of the coronavirus pandemic, are placing stress on supply chains.
"Demand for our products and solutions continues to exceed supply significantly," he added.
The semiconductor shortage has hit production across tech and automotive firms because chips form the basis for vital circuit boards.
Despite the results, Infineon's share price was down by more than 3% in early trading.
Infineon also said it was looking at opportunities as the world moves towards cleaner tech solutions to tackle climate change.
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“Decarbonisation and digitalisation will profoundly change the world we live in over the next decade. We are actively driving this change, while at the same time seizing these opportunities to generate profitable growth.
“We are closely monitoring short- and medium-term market and supply conditions in order to be able to respond in case of need,” Hanebeck said.