Munich, Germany - February 4, 2026 - Infineon Technologies AG said it will increase its planned investment for fiscal year 2026 by approximately EUR 500 million (~USD 591.35 million), lifting total capital spending to EUR 2.7 billion (~USD 3.2 billion), as demand for semiconductors used in artificial intelligence and data center infrastructure continues to accelerate.
The announcement was made in an official company press release alongside Infineon’s first-quarter fiscal 2026 results. The additional spending will focus on expanding manufacturing capacity for power electronics, sensors, and other semiconductor products that play a critical role in data center power delivery and AI computing systems.
Infineon reported a solid start to the fiscal year, with first-quarter revenue slightly exceeding market expectations. The company said its financial performance provides sufficient flexibility to accelerate investment despite uneven conditions in some broader semiconductor markets.
Chief Executive Officer Jochen Hanebeck said rising demand from data center and AI customers was driving the decision to increase capital expenditures.
“Dynamic demand in the data center and AI markets is leading us to align our capacity expansion more closely with customer requirements,” Hanebeck said. “By increasing our planned investments, we are ensuring that we can support this growth and continue to serve our customers reliably.”
While Infineon did not provide a detailed breakdown of how the additional EUR 500 million (~USD 591.35 million) will be allocated, analysts expect much of the spending to support advanced power semiconductor production, including components used in high-efficiency server power supplies and energy-optimized AI systems.
As AI workloads grow in scale and intensity, power management has become a central challenge for data center operators. Demand is rising for semiconductors that enable efficient power conversion, voltage regulation, and thermal optimization, areas where Infineon has a strong portfolio.
The company noted that its Power & Sensor Systems division, which includes many data-center-related products, delivered solid performance during the quarter. Infineon expects this segment to grow faster than the rest of the business as hyperscale cloud providers and enterprise customers expand AI infrastructure.
The broader semiconductor industry continues to experience mixed demand trends, with some consumer and industrial markets remaining soft. However, investment tied to AI, cloud computing, and high-performance data centers has remained resilient, prompting suppliers like Infineon to prioritize capacity expansion in these areas.
Infineon said the higher investment level reflects its confidence that data center and AI-driven demand will remain a key growth engine over the coming years, reinforcing the strategic importance of power semiconductors in next-generation computing infrastructure.
