Infineon Technologies, a German chipmaker supplying artificial intelligence (AI) data centers, announced its plan to invest an additional €500 million (approximately $591.65 million) in capacity expansion in the current fiscal year, driven by the forecast that revenue from this business will surge by two-thirds by 2027.
Infineon stated it will raise its investment plan for the 2026 fiscal year (starting October 1, 2025) to €2.7 billion, with the majority earmarked for data center chip businesses.
Accordingly, the company projects that revenue from its AI business will hit €1.5 billion in the current fiscal year and rise to €2.5 billion in the next fiscal year.
Jochen Hanebeck, CEO of Infineon, commented: "Amid the downturn in other markets, the robust demand for AI is providing a strong boost for Infineon." He added: "To better serve our customers, we are adjusting production capacity to meet the growing demand and advancing related investments ahead of schedule."
Infineon also reported consolidated revenue of €3.66 billion for its first fiscal quarter, slightly exceeding analysts' expectations of €3.62 billion. Its segment margin—the company’s preferred metric for measuring operational profitability—also beat forecasts, reaching 17.9% in the first fiscal quarter ending in December.
Infineon noted that revenue from its Power and Sensor Systems division fell 3% quarter-on-quarter to €1.17 billion, but the division’s full-year growth is expected to outpace the Group’s average growth rate by a wide margin, largely fueled by rising demand from data centers.
(Reprinted from https://news.eccn.com/）