February 7, 2025 /SemiMedia/ — Infineon Technologies said it expects a modest revenue increase by 2025, driven by favorable exchange rates and growing market share in China, despite ongoing trade uncertainties impacting the semiconductor industry.

The company’s recent quarterly results surpassed expectations, prompting an upward revision of its full-year revenue outlook and an 11% rise in its share price. Infineon’s performance, particularly in the automotive and industrial microchip segments, has outpaced many peers that have struggled amid sluggish demand.

“We remain optimistic about 2025, provided there is no significant escalation in tariffs,” said CFO Sven Schneider. “Our forecast does not factor in a sharp rise in trade barriers, as we continue to support free trade.” Schneider’s comments come amid heightened speculation over potential tariffs from the United States on Mexico, Canada, and China—regions critical to the semiconductor supply chain.

Analysts caution that increased tariffs could raise costs for automotive and electronic components, potentially making electric vehicles more expensive and dampening sales. They also note that trade disruptions may prompt Chinese electronics manufacturers to reduce inventory levels, further complicating market dynamics.

Despite these risks, Infineon expects its automotive revenue to remain stable or rise slightly in fiscal 2025, while significant growth is anticipated in its power and sensor divisions, bolstered by its AI server products.