Infineon will supply parts to Tesla39;s upcoming mass-market Model 3 electric car, the German chipmaker said on Tuesday, after being beaten out as an initial supplier by Franco-Italian rival STMicroelectronics for the coveted deal.7 percent at 18."We do not comment on the individual models, but we will also be present in Model 3," Chief Executive Reinhard Ploss told reporters after Infineon reported third-quarter operating profit just ahead of analysts39; consensus forecast.end-ofTags: tesla model 3.Infineon confirmed its parts would go into the Model 3, which is now ramping up for volume production in 2018. Quarterly operating income, excluding certain items, rose 33 percent to 338 million euros ($400 million), compared with analysts39; average forecast of 323 million in a Reuters poll.
The company reaffirmed its projection for 8-11 percent revenue growth for the year ending in September and said its annual operating profit margin, excluding certain items, would be unchanged around 17 percent.Infineon, which supplies chips to control the batteries and motors in eight out of 10 of the world39;s top selling electric vehicles, confirmed its parts would go into the Model 3, which is now ramping up for volume production in wholesale electric bike The German company039;s products are already in Tesla039;s Model S sports car, the world039;s top-selling electric vehicle.70 euros at 1315 GMT. "Our success is very much dependent on Asia," he said. While its presence in the Model 3 could be a boost, Ploss said most of the demand for Infineon39;s electric vehicle parts would continue to come from Asia.The German company39;s products are already in Tesla39;s Model S sports car, the world39;s top-selling electric vehicle, but the Model 3 - costing $35,000 in the United States — has the potential to significantly outsell the $60,000 Model S.
Infineon shares, which had slipped in early trading, picked up after Ploss signalled it had a renewed appetite for mergers. The stock was up 1.STMicroelectronics was first to market with a new class of highly energy efficient 1,200-volt silicon-carbide chips, which brokerage Liberum said helped it win the initial deal to supply power chips for the Model 3.83 billion euros.Ploss said the company "continues to explore various acquisition options" after its agreed $850 million deal to buy the Wolfspeed power unit of Cree collapsed under US government scrutiny earlier this year. But it predicted Infineon would become the second source of such chips as volumes ramp next year. Revenue for its fiscal third quarter ended in June was roughly in line with expectations, up 12.Last Friday, Tesla delivered the first 30 Model 3s to employee buyers, part of more than half a million advance reservations.2 percent on the same period a year ago to 1.Ploss told reporters on a conference call that Infineon remained interested in deals in the American market, but would be sure to steer clear of technology the US government considers vital to national security.