Infineon Technologies has raised its investment plans to meet surging AI data center demand, pairing higher capital spending with a targeted sensor acquisition Infineon Technologies has raised its investment plans to meet surging AI data center demand, pairing higher capital spending with a targeted sensor acquisition

Infineon Technologies raises investment plans to meet surging AI data center demand

3 min read

Infineon Technologies has raised its investment plans to meet surging AI data center demand, pairing higher capital spending with a targeted sensor acquisition to strengthen growth beyond its core markets.

The German chipmaker said the move positions Infineon to capture accelerating orders from hyperscale data centers while broadening its footprint in automotive, industrial, and medical applications.

Expanding investment to serve AI data centres

Infineon announced the planned addition of €500 million in capital expenditure for lease purchases by fiscal year 2026 and is focusing these funds on the manufacturing of semiconductors specifically for use in data center applications.

Projected revenue from AI businesses is forecasted at €1.5 billion for the current fiscal year through March 31, and then expected to increase by €1 billion to an expected €2.5 billion during the following fiscal year.

“Strongly accelerated demand from our customers for artificial intelligence (AI) products is a very positive headwind for Infineon, especially given otherwise weaker conditions for the entire market,” said Infineon CEO Jochen Hanebeck.

Investors reacted favorably to today’s announcement, resulting in stock price increases during pre-market trading.

Infineon revealed revenues of €3.66 billion for Q1 FY23 (1-Dec-22 through 31-Dec-22), exceeding analysts’ predictions. At the same time, its segment result margin was reported at 17.9% exceeding the estimates by a substantial amount.

For Power & Sensor Systems (P&SS), however, Infineon reported revenue declined 3% quarter on quarter to €1.17 billion. Nevertheless, management believes this section of the business has the potential for stronger growth than the group average.

In November 2025, Infineon reportedly raised its AI data center power-supply target to €1.5 billion by 2026, up from €1 billion projected just one quarter earlier, according to a statement released Wednesday.

Hanebeck at the time said global investment in AI infrastructure keeps climbing, prompting a new forecast that’s 50% higher than before.

Infineon is acquiring sensors to deepen market reach

Infineon, in conjunction with this investment effort, has agreed to pay €570 million for the purchase of ams OSRAM’s non-optical analog and mixed-signal sensor portfolio.

The transaction will be an all-cash, debt-free transaction. The acquired business is expected to generate approximately €230 million in revenue in 2026, resulting in an immediate benefit to Infineon’s earnings.

According to Hanebeck, the acquisition of the ams OSRAM product line “will add to Infineon’s existing portfolio of analog products and sensors,” while also allowing Infineon to explore new markets such as humanoid robotics.

Upon closing of the transaction, which is slated to occur in Q2 2026, subject to regulatory approval, approximately 230 ams OSRAM employees will join Infineon.

The company has continued to merge and partner with associate companies, with its Aurora Lab deal being another.

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