Wedoany.com Report on Feb 6th, German semiconductor company Infineon Technologies announced it will invest an additional €500 million in the current fiscal year to enhance manufacturing capabilities, addressing the rapid growth in demand for artificial intelligence data center chips. This move brings Infineon's total planned investment for fiscal year 2026 (starting October 1) to €2.7 billion, with the majority of funds allocated to expanding production scale for power semiconductors and related chips that support AI-driven data center infrastructure.
Infineon expects its AI-related business revenue to reach €1.5 billion this year and increase to €2.5 billion next year. The company also forecasts that this division's revenue will grow by approximately two-thirds by 2027, reflecting sustained demand from hyperscale and enterprise data center customers. CEO Jochen Hanebeck stated: "Against a relatively subdued overall market backdrop, AI demand is very active, providing Infineon with a strong tailwind." He added that the company is investing ahead of schedule to better align manufacturing capacity with growing customer demand.
Infineon's stock price rose 2.6% in early trading. The company reported first-quarter group revenue of €3.66 billion, with a segment result margin of 17.9% for the first quarter of the fiscal year ending in December. The Automotive division revenue declined to €1.821 billion in the first quarter of fiscal 2026, a 5% decrease from the previous quarter, primarily due to seasonal demand weakness. The Power & Sensor Systems division revenue decreased 3% quarter-on-quarter to €1.17 billion but is expected to grow at a significantly faster pace than the group average for the remainder of the year, mainly driven by the expansion of data center demand related to AI workloads.
The Green Industrial Power division revenue fell to €349 million, a 21% decrease from the previous quarter, with significant demand declines across all areas except grid infrastructure. The Connected Secure Systems division revenue declined to €321 million in the first quarter of fiscal 2026, a 13% decrease from the previous quarter, mainly due to lower seasonal demand in most application areas. By expanding its AI data center chip capacity, Infineon is proactively responding to market changes and driving revenue growth.
