Infineon boosts investment target by 500 million euros to meet data centre demand

Core Viewpoint - Infineon plans to invest an additional 500 million euros in manufacturing capacity this fiscal year, anticipating significant growth in revenue from its AI business, which is expected to increase by two-thirds by 2027 [1][2]. Investment Plans - The company has raised its planned investments for the 2026 fiscal year to 2.7 billion euros, focusing primarily on chips for data centers [1]. Revenue Expectations - Infineon expects its AI business revenue to reach 1.5 billion euros in the current year and 2.5 billion euros in the following year [2]. - The group reported first-quarter revenue of 3.66 billion euros, slightly exceeding analyst expectations of 3.62 billion euros [3]. Profitability Metrics - Infineon's segment result margin for the fiscal first quarter was 17.9%, surpassing expectations [3]. - Revenue from the power and sensor systems segment decreased by 3% to 1.17 billion euros compared to the previous quarter, but is projected to grow faster than the group average due to data center demand [4].