diff --git a/homeassistant/components/knx/__init__.py b/homeassistant/components/knx/__init__.py
index a52163cfca3..e98e598af1d 100644
--- a/homeassistant/components/knx/__init__.py
+++ b/homeassistant/components/knx/__init__.py
@@ -36,7 +36,6 @@ from homeassistant.helpers.typing import ConfigType
 
 from .const import DOMAIN, KNX_ADDRESS, SupportedPlatforms
 from .expose import KNXExposeSensor, KNXExposeTime, create_knx_exposure
-from .factory import create_knx_device
 from .schema import (
     BinarySensorSchema,
     ClimateSchema,
@@ -229,19 +228,15 @@ async def async_setup(hass: HomeAssistant, config: ConfigType) -> bool:
             )
 
     for platform in SupportedPlatforms:
-        if platform.value in config[DOMAIN]:
-            for device_config in config[DOMAIN][platform.value]:
-                create_knx_device(platform, knx_module.xknx, device_config)
-
-    # We need to wait until all entities are loaded into the device list since they could also be created from other platforms
-    for platform in SupportedPlatforms:
+        if platform.value not in config[DOMAIN]:
+            continue
         hass.async_create_task(
             discovery.async_load_platform(
                 hass,
                 platform.value,
                 DOMAIN,
                 {
-                    "platform_config": config[DOMAIN].get(platform.value),
+                    "platform_config": config[DOMAIN][platform.value],
                 },
                 config,
             )
diff --git a/homeassistant/components/knx/factory.py b/homeassistant/components/knx/factory.py
deleted file mode 100644
index 99885c8387a..00000000000
--- a/homeassistant/components/knx/factory.py
+++ /dev/null
@@ -1,35 +0,0 @@
-"""Factory function to initialize KNX devices from config."""
-from __future__ import annotations
-
-from xknx import XKNX
-from xknx.devices import Device as XknxDevice, Sensor as XknxSensor
-
-from homeassistant.const import CONF_NAME, CONF_TYPE
-from homeassistant.helpers.typing import ConfigType
-
-from .const import SupportedPlatforms
-from .schema import SensorSchema
-
-
-def create_knx_device(
-    platform: SupportedPlatforms,
-    knx_module: XKNX,
-    config: ConfigType,
-) -> XknxDevice | None:
-    """Return the requested XKNX device."""
-    if platform is SupportedPlatforms.SENSOR:
-        return _create_sensor(knx_module, config)
-
-    return None
-
-
-def _create_sensor(knx_module: XKNX, config: ConfigType) -> XknxSensor:
-    """Return a KNX sensor to be used within XKNX."""
-    return XknxSensor(
-        knx_module,
-        name=config[CONF_NAME],
-        group_address_state=config[SensorSchema.CONF_STATE_ADDRESS],
-        sync_state=config[SensorSchema.CONF_SYNC_STATE],
-        always_callback=config[SensorSchema.CONF_ALWAYS_CALLBACK],
-        value_type=config[CONF_TYPE],
-    )
diff --git a/homeassistant/components/knx/sensor.py b/homeassistant/components/knx/sensor.py
index fa4de79cb03..21586faf58c 100644
--- a/homeassistant/components/knx/sensor.py
+++ b/homeassistant/components/knx/sensor.py
@@ -3,9 +3,11 @@ from __future__ import annotations
 
 from typing import Any
 
+from xknx import XKNX
 from xknx.devices import Sensor as XknxSensor
 
 from homeassistant.components.sensor import DEVICE_CLASSES, SensorEntity
+from homeassistant.const import CONF_NAME, CONF_TYPE
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers.entity_platform import AddEntitiesCallback
 from homeassistant.helpers.typing import ConfigType, DiscoveryInfoType, StateType
@@ -13,6 +15,7 @@ from homeassistant.util import dt
 
 from .const import ATTR_LAST_KNX_UPDATE, ATTR_SOURCE, DOMAIN
 from .knx_entity import KnxEntity
+from .schema import SensorSchema
 
 
 async def async_setup_platform(
@@ -22,20 +25,38 @@ async def async_setup_platform(
     discovery_info: DiscoveryInfoType | None = None,
 ) -> None:
     """Set up sensor(s) for KNX platform."""
+    if not discovery_info or not discovery_info["platform_config"]:
+        return
+
+    platform_config = discovery_info["platform_config"]
+    xknx: XKNX = hass.data[DOMAIN].xknx
+
     entities = []
-    for device in hass.data[DOMAIN].xknx.devices:
-        if isinstance(device, XknxSensor):
-            entities.append(KNXSensor(device))
+    for entity_config in platform_config:
+        entities.append(KNXSensor(xknx, entity_config))
+
     async_add_entities(entities)
 
 
+def _create_sensor(xknx: XKNX, config: ConfigType) -> XknxSensor:
+    """Return a KNX sensor to be used within XKNX."""
+    return XknxSensor(
+        xknx,
+        name=config[CONF_NAME],
+        group_address_state=config[SensorSchema.CONF_STATE_ADDRESS],
+        sync_state=config[SensorSchema.CONF_SYNC_STATE],
+        always_callback=config[SensorSchema.CONF_ALWAYS_CALLBACK],
+        value_type=config[CONF_TYPE],
+    )
+
+
 class KNXSensor(KnxEntity, SensorEntity):
     """Representation of a KNX sensor."""
 
-    def __init__(self, device: XknxSensor) -> None:
+    def __init__(self, xknx: XKNX, config: ConfigType) -> None:
         """Initialize of a KNX sensor."""
         self._device: XknxSensor
-        super().__init__(device)
+        super().__init__(_create_sensor(xknx, config))
         self._unique_id = f"{self._device.sensor_value.group_address_state}"
 
     @property