Infineon boosts investment to meet demand from AI data centres

BERLIN, Feb 4 (Reuters) - ⁠Germany's Infineon, ⁠whose ‍chips are used to power AI data centres, expects revenue from that business to leap ‍nearly two-thirds to 2.5 billion euros ($2.96 billion) ​in its 2027 fiscal year, as it raises planned investments to ​meet demand.

Infineon is aiming for a chip revenue target of 1.5 billion euros for its current 2026 fiscal year that ​began on October 1.

To meet the anticipated demand, the company increased its planned investments for its ​2026 fiscal year by roughly 500 million euros, to 2.7 billion euros, ‌to expand the manufacturing capacity for data centre power supplies.

"To serve our customers in the ​best possible way, we are ⁠aligning our manufacturing capacity to meet further rising demand and are bringing forward our ‌investments in this area," said CEO Jochen Hanebeck on Wednesday.

Infineon also reported group first quarter revenue of 3.66 ‌billion euros, slightly above the 3.62 billion euros expected in a ‌poll of analysts by Vara Research published on January 27.

Revenue for its power and sensor systems segment was down 3%, ‍at 1.17 billion euros, compared with the previous quarter, but is expected to grow ⁠at a much faster rate than the group average over the course of the year on data centre demand, Infineon said.

(Reporting by Hakan Ersan and Miranda Murray, editing by Linda Pasquini)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• San Francisco Catholic church reaches $395 million sex abuse settlement
• Exclusive-NBCUniversal may enter video game business after Comcast split, sources say
• Trump signs memo making it easier for Americans to fix own vehicles