Infineon remains a champ in chips

 Infineon Extends Lead in Automotive Chips – A Key Player Behind the EV Shift

While most of the attention in the EV market goes to car brands and batteries, the companies supplying the underlying technology are just as important.

One of those is Infineon Technologies AG, which has once again been confirmed as the world’s largest automotive semiconductor supplier—for the sixth year in a row.

According to new data from TechInsights, Infineon continues to hold the top position globally, with a growing lead over competitors.

A growing market, driven by EVs

The automotive semiconductor market reached $74.4 billion in 2025, up from $69.9 billion the previous year.

That growth is being driven by a few key trends:

• More electric vehicles on the road

• Increasingly complex electronics in all cars

• The shift towards software-defined vehicles

Even relatively “simple” cars now require a significant amount of processing power—EVs even more so.

Why this matters for EVs

Semiconductors are central to how modern EVs function. They’re used in:

• Electric drivetrains (efficiency and performance)

• Battery management systems

• Driver assistance and safety features

• In-car software and updates

As EVs become more advanced, the demand for these components continues to increase.

Microcontrollers: a key battleground

One area where Infineon has strengthened its position is in automotive microcontrollers, where it now holds around 36% market share.

These chips handle a lot of the “real-time” work inside a vehicle, including:

• Controlling electric motors

• Managing power systems

• Supporting safety and driver assistance features

It’s not the most visible part of an EV—but it’s one of the most important.

Strong position globally

Infineon’s leadership is spread across key markets:

• Leading in Europe, China and South Korea

• Second place in North America and Japan

That matters, as EV adoption continues to grow at different speeds across regions.

The bigger picture

Infineon has held the top spot since 2020, and its continued lead reflects where the industry is heading.

As cars become more electric and more software-driven:

• The role of semiconductors will only increase

• Supply chains will remain critical

• Companies like Infineon will have a growing influence on how quickly technology evolves

Takeaway

For EV buyers and enthusiasts, this is mostly happening behind the scenes—but it has real-world impact.

Better chips mean:

• More efficient vehicles

• Improved range and performance

• Faster development of new features

So while Infineon isn’t a household name, it’s very much part of what’s powering the shift to electric.

Also a stock worth investigating and in our EV future Portfilio.