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Infineon bets on AI boom to spur more lucrative chip sales
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FRANKFURT (Reuters) – Germany’s Infineon is banking on a boom in artificial intelligence (AI) to generate billions in revenue and drive future growth by selling higher price chips, CEO Jochen Hanebeck said on Friday.
FRANKFURT (Reuters) – Germany’s Infineon is banking on a boom in artificial intelligence (AI) to generate billions in revenue and drive future growth by selling higher price chips, CEO Jochen Hanebeck said on Friday.
“Conventional servers contain power semiconductors worth between $65-80. In an AI server, it’s 850 to 1,800 US dollars, depending on the architecture,” he told the company’s annual general meeting, according to prepared remarks.
“With semiconductors for data centres, we expect to generate revenues in the low three-digit million euros range in the 2024 fiscal year. But in a few years’ time, we expect annual revenues of around one billion euros.” In the 2022/2023 financial year, Infineon presented record results, but scaled back its targets for 2023/2024 due to the weakening global economy.
(Reporting by Hakan Ersen; writing by Matthias Williams; editing by Rachel More)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. It is used in various applications, including data analysis and automation in industries like finance.
Revenue is the total income generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted. It is a key indicator of a company's financial performance.
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It is crucial for managing and storing large amounts of data.
Market capitalization is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the stock's current price by the total number of outstanding shares.
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