Infineon Technologies AG (IFNNY) announced it now expects fiscal second-quarter revenue to grow by approximately 8% compared to the same period last year, driven by sustained demand for power semiconductors and microcontrollers. To support this acceleration, the company plans to boost its capital expenditure by roughly 20%, allocating an additional €300 million to expand wafer capacity and upgrade manufacturing lines in Dresden and Malaysian fabrication sites. These investments aim to ensure lead times remain below 20 weeks and fortify Infineon’s position in automotive and industrial segments.

Management highlighted that revenue from AI data center applications is projected to jump nearly two-thirds, reaching €2.5 billion in the fiscal year 2027. This segment, which accounted for just over €1.5 billion in 2024, serves customers designing power-efficient chips for high-performance computing clusters. Infineon’s R&D team has completed initial qualification runs of 300mm gallium nitride power devices, targeting next-generation server architectures, with mass production slated for mid-2026.