Merkel‘s $1.4 Billion E-Car Push Boosts Infineon, STMicro

The subsidy program, which kicks off in May with rebates for vehicle buyers and plans for 15,000 battery-charging stations, translates into about $300 million of chips by 2019, said Guenther Hollfelder, an analyst at Baader Bank AG. Infineon, which reports second-quarter earnings Tuesday, is slated to win most of that, he said.

“No one is better positioned to benefit from the e-car push than Infineon, because they’re among the leading players for both automotive as well as power semiconductors,” Hollfelder said. STMicroelectronics NV is another beneficiary because of a broad power chip portfolio and strong ties with the car industry, in particular in its home markets Italy and France, he said.