Infineon, the German company whose chips power AI data centres, has said it plans to invest this extra finance as it expects revenue from its AI business to grow by two-thirds in 2027.
The company has increased its planned investments for its 2026 fiscal year to €2.7 billion – mainly focusing on the chips that power data centres. This means it expects revenue from its AI business to hit €1.5 billion in the current year and reach €2.5 billion next year.
Eager to meet surging data centre demand, Infineon expects its power and sensor systems segment to grow at a much faster rate than the group average over the year on data centre demand – despite Reuters reporting this segment as being down 3% at €1.17 billion.
“Infineon has made a successful start to fiscal year 2026,” said Jochen Hanebeck, CEO of Infineon. “The very dynamic demand for AI, against an otherwise subdued market back-drop, is providing strong tailwinds to Infineon. At present, the focus is on power supply solutions for AI data centres; in the coming years, the expansion of grid infrastructure will be added.”
In order to better serve its customers, Hanebeck added that Infineon would be aligning its manufacturing capacity to meet continued rising demand.
“[We] are bringing forward our investments in this area,” he said. “A significant portion will go toward accelerating the ramp-up of our new Smart Power Fab in Dresden, which we will open this summer – at exactly the right time.”
The news comes after Infineon reportedly raised its AI data centre power-supply target in November 2025 to €1.5 billion by 2026. Hanebeck said at the time that global investment in AI infrastructure continues to climb, which prompted a new forecast that’s 50% higher than before.
As a global semiconductor leader in power systems, Infineon’s mission is to enable solutions for green and efficient energy and smart and secure IoT.
In October 2025, the company partnered with SolarEdge to advance high-efficiency power infrastructure for AI data centres. Developing a new solid-state transformer (SST), the technology to designed to enable direct medium-voltage to 800–1500V DC conversion with over 99% efficiency to reduce size, weight and CO₂ footprint.
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