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Infineon Technologies has raised its investment plans to meet surging AI data center demand, pairing higher capital spending with a targeted sensor acquisition to strengthen growth beyond its core markets. The German chipmaker said the move positions Infineon to capture accelerating orders from hyperscale data centers while broadening its footprint in automotive, industrial, and medical applications. Expanding investment to serve AI data centres Infineon announced the planned addition of €500 million in capital expenditure for lease purchases by fiscal year 2026 and is focusing these funds on the manufacturing of semiconductors specifically for use in data center applications. Projected revenue from AI businesses is forecasted at €1.5 billion for the current fiscal year through March 31, and then expected to increase by €1 billion to an expected €2.5 billion during the following fiscal year. “Strongly accelerated demand from our customers for artificial intelligence (AI) products is a very positive headwind for Infineon, especially given otherwise weaker conditions for the entire market,” said Infineon CEO Jochen Hanebeck. “We are ensuring that we will have the right capacity for our customers to deliver to them when they need it, while we will be accelerating our investments to support our long-term alignment for growth.” Hanebeck. Investors reacted favorably to today’s announcement, resulting in stock price increases during pre-market trading. Infineon revealed revenues of €3.66 billion for Q1 FY23 (1-Dec-22 through 31-Dec-22), exceeding analysts’ predictions. At the same time, its segment result margin was reported at 17.9% exceeding the estimates by a substantial amount. For Power & Sensor Systems (P&SS), however, Infineon reported revenue declined 3% quarter on quarter to €1.17 billion. Nevertheless, management believes this section of the business has the potential for stronger growth than the group average. In November 2025, Infineon reportedly raised its AI data center power-supply target to €1.5…

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Filed under: News - @ February 4, 2026 11:29 am