BERLIN, Feb. 4 (Xinhua) -- German chipmaker Infineon's revenue increased by 37 percent year-on-year to more than 2.6 billion euros (3.1 billion U.S. dollars) in the first quarter (Q1) of the company's fiscal year 2021, the company said on Thursday.

"Infineon has made a good start to the new fiscal year," said Chief Executive Officer (CEO) Reinhard Ploss. "Despite headwinds from a weak U.S. dollar, we recorded significant increases in both revenue and earnings in the first quarter."

The strong growth compared to last year's figures was also attributable to the acquisition for nine billion euros of U.S. competitor Cypress last spring, which made Infineon a "global top 10 semiconductor company."

In Q1 fiscal 2021, between October and December last year, 44 percent of Infineon's total revenues were generated by the company's automotive business, which grew by ten percent quarter-on-quarter. Demand for components for electric vehicles had been particularly high, according to Infineon.

China was responsible for 39 percent of the company's revenues, making it the biggest single market for Infineon, while the Europe, Middle East and Africa (EMEA) region generated 25 percent of total revenues in Q1, according to the company.

Net income was up 22 percent year-on-year and reached 256 million euros in Q1. Infineon benefited from a push in digitalization "affecting all areas of life" in addition to a partial global economic recovery.

In view of a "dynamic ordering momentum" and most manufacturing plants of Infineon "running at good utilization rates," the chipmaker expected revenues of around 10.8 billion euros with growth in particular in the second half of fiscal year 2021.

Following the announcement, Infineon's shares were among the biggest losers on the DAX index of the country's 30 largest listed companies, losing 1.89 percent in late trading on Thursday. (1 euro = 1.20 U.S. dollar) Enditem

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