Infineon Boosts Chip Production Capacity to Support AI Data Center Growth

Infineon Technologies plans to increase fiscal 2026 investments to €2.7 billion, up roughly €500 million from the prior €2.2 billion target. The increase focuses on expanding manufacturing capacity for power-supply semiconductors used in AI data centers.

The company forecasts €1.5 billion in AI data center revenue for fiscal 2026 (ending September 2026), raised from a November estimate of €1 billion. It expects about €2.5 billion in fiscal 2027 revenue, roughly a 67% increase.

These updates accompany first-quarter fiscal 2026 results that showed €3.66 billion in revenue, above analyst expectations of €3.62 billion. 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."

Power semiconductors enable efficient power management for AI servers and infrastructure. Suppliers face capacity constraints amid booming GPU deployments.

Why It Matters

• Data center infrastructure teams: improved availability of power semiconductors as Infineon expands capacity through FY2026, reducing a key supply risk for AI builds.
• MLOps engineers: greater confidence to scale GPU clusters without expected power-component shortages, supported by the €1.5B FY2026 revenue target.
• Procurement leads at hyperscalers: consider securing supply agreements now to cover FY2027 demand, which Infineon projects at €2.5B.