Finance
Infineon boosts investment target by 500 million euros to meet data centre demand
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Quick Summary
Infineon plans to increase investment in AI data centres, projecting significant revenue growth by 2027, with a focus on expanding manufacturing capacity.
Infineon Increases Investment Target by 500 Million Euros for AI Demand
Infineon's Increased Investment Strategy
BERLIN, Feb 4 (Reuters) - Germany's Infineon, whose chips power AI data centres, said it plans to invest an extra 500 million euros ($591.65 million) in manufacturing capacity this fiscal year as it expects revenue from that business to grow by two-thirds in 2027.
Revenue Expectations
The company on Wednesday increased its planned investments for its 2026 fiscal year that began on October 1 to 2.7 billion euros, with a focus mainly on chips that power the data centres.
Market Response
As a result, it said it expects revenue from its AI business to hit 1.5 billion euros in the current year and reach 2.5 billion euros in the next one.
Segment Performance
Shares were up 2.6% in early trade after the results.
"The very dynamic demand for AI, against an otherwise subdued market backdrop, is providing strong tailwinds to Infineon," CEO Jochen Hanebeck said.
"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," he added.
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.
Its segment result margin - Infineon's preferred measure of operating profitability - also beat expectations by reaching 17.9% for the fiscal first quarter ending in December.
Revenue for Infineon's 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 year on data centre demand, it said.
($1 = 0.8451 euros)
(Reporting by Hakan Ersan and Miranda Murray, editing by Linda Pasquini and Andrew Heavens)
Key Takeaways
- •Infineon projects significant revenue growth from AI data centres.
- •The company plans to invest an additional 500 million euros.
- •Revenue from chip sales is expected to reach 1.5 billion euros in 2026.
- •Infineon's first quarter revenue exceeded analyst expectations.
- •Power and sensor systems segment revenue is set to grow.
Frequently Asked Questions about Infineon boosts investment target by 500 million euros to meet data centre demand
1What is investment?
Investment refers to the allocation of resources, usually money, in order to generate income or profit. It can take various forms, including stocks, bonds, real estate, and business ventures.
2What are data centres?
Data centres are facilities used to house computer systems and associated components, such as telecommunications and storage systems. They are crucial for managing and storing large amounts of data.
3What is revenue projection?
Revenue projection is an estimate of the amount of money a company expects to earn over a specific period. It is based on historical data, market trends, and business strategies.
4What is manufacturing capacity?
Manufacturing capacity refers to the maximum amount of products that a company can produce in a given time period. It is influenced by factors such as equipment, workforce, and operational efficiency.
5What is quarterly revenue?
Quarterly revenue is the total income generated by a company during a three-month period. It is an important metric for assessing a company's financial performance and growth.
