German semiconductor manufacturer Infineon raised its outlook to “record” highs on Monday, as it registered an increase in quarterly profits on the back of strong demand for the key component. 

The chipmaker made a net profit of €469 million between January and March 2022, up from €203 million in the same period last year. 

Infineon’s revenues rose to €3.3 billion in the second quarter of its delayed financial year, an increase on the €2.7 billion brought in last time around.

Supplies of the component, used in everything from consumer electronics to cars, have been tight for over a year. Getting hold of chips was the “sticking point” for many clients, the new Infineon CEO, Jochen Hanebeck, told reporters in a call.

The manufacturer’s performance for the rest of the fiscal year would be “overwhelmingly determined by the supply side”, he said.

Infineon said it now expected to bring in €13.5 billion in revenue over the course of the current fiscal year, up from its previous estimate of €13 billion. 

The new outlook put the group’s projected revenues and year-end result at new “record levels”, Hanebeck said. The projection was supported by Infineon’s expectation that the mismatch between the demand for and supply of chips would continue “into 2023”, the CEO said.

The projection was supported by Infineon’s expectation that the mismatch between the demand for and supply of chips would continue “into 2023”- Infineon CEO Jochen Hanebeck

In addition, around “150 million euros” of the increase in revenue over the next six months could also be attributed to currency effects, as the euro weakened against the dollar, he said.

The improved forecast did not factor in the possible “further consequences” following an energy embargo on Russia in response to the invasion of Ukraine or further “longer supply disruptions in China”, which have already shaken the industry.