Infineon to invest €500m
Infineon Headquarters
Infineon has announced plans to invest an additional €500 million in manufacturing capacity this year as it prepares to meet rapidly growing demand from AI-driven data centres. The German semiconductor group expects revenue from its AI business to rise sharply, forecasting growth of around two-thirds by 2027.
The company has increased its planned capital expenditure for the 2026 fiscal year to €2.7 billion, with much of the spending directed toward chips used in data centre power systems. Infineon expects AI-related revenue to reach €1.5 billion in the current year and climb to €2.5 billion next year.
Chief executive Jochen Hanebeck said Infineon has begun fiscal 2026 strongly, supported by “very dynamic demand for AI” despite broader market softness. While the company’s power and sensor systems division reported revenue down 3% to €1.17 billion, Infineon believes the segment will grow faster than the overall group as data centre demand accelerates.
Hanebeck added that Infineon is bringing forward investments to expand production capacity, with a significant share going toward speeding up the ramp-up of its new Smart Power Fab in Dresden, scheduled to open this summer.
The announcement follows Infineon’s earlier move in November 2025 to raise its AI data centre power-supply target to €1.5 billion by 2026, reflecting rising global investment in AI infrastructure.
Infineon continues to position itself as a leader in power semiconductors, supporting greener energy systems and smart IoT. In October 2025, it partnered with SolarEdge to develop high-efficiency solid-state transformer technology for AI data centres, enabling direct medium-voltage to high-voltage DC conversion with more than 99% efficiency while reducing size, weight and emissions.
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