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Infineon Boosts Chip Investment Amidst AI Boom
4 Feb
Summary
- Infineon invests an additional 500 million euros in chip manufacturing.
- AI chip revenue is projected to increase by two-thirds by 2027.
- The company raised its planned investments for fiscal year 2026.
Infineon, a key supplier of chips for AI data centers, announced an additional investment of 500 million euros in manufacturing capacity during the current fiscal year. This expansion is a direct response to anticipated strong growth in its AI business.
The company now plans to invest a total of 2.7 billion euros for its 2026 fiscal year, which commenced on October 1. This increased capital expenditure is primarily directed towards enhancing the production of chips crucial for AI data centers.
Infineon projects that its revenue from the AI sector will reach 1.5 billion euros in the current year and is forecast to climb to 2.5 billion euros in the subsequent year. This represents an anticipated growth of two-thirds by 2027.
The company reported first-quarter group revenue of 3.66 billion euros, slightly surpassing analyst expectations. Its segment result margin also exceeded forecasts, achieving 17.9% for the fiscal first quarter ending in December.
While revenue from the power and sensor systems segment saw a 3% decrease quarter-over-quarter, it is expected to experience substantial growth throughout the year, significantly outperforming the group's average, largely due to sustained demand from data centers.
