Infineon hits revenue record as AI data centres drive growth

Published on 05/08/2026 - 10:11 GMT+2

Good news from German industry: chip and semiconductor manufacturer Infineon has reported record revenues.

The technology group based in Neubiberg near Munich increased its revenue by 13 percent compared with the same quarter last year, to 4.2 billion euros in the third quarter of its financial year, according to the dpa news agency. Earnings also developed strongly: profit jumped 39 percent to 423 million euros.

The market environment has brightened and the upswing is in full swing, said chief executive Jochen Hanebeck. "More and more of our target markets are showing a positive trend," he stressed.

Power-supply solutions for AI data centres remain particularly in demand; the manager described them as the most important driver of growth. The company is also benefiting from rising investment worldwide in network infrastructure. Order intake in the automotive business is likewise picking up noticeably.

Main growth drivers: cars and AI

The automotive division is Infineon's largest segment and accounts for just under half of revenue. In the past, this area also suffered from the weakness of the car industry.

Now the trend is heading upwards again: orders are increasing, albeit less dynamically than in the second-largest division, Power & Sensor Systems. That unit grew by around one third compared with the same quarter a year earlier.

Demand is being driven above all by servers and the massive expansion of data centres for artificial intelligence.

Infineon has had a turbulent history. The company was created in 1999 when Siemens spun off its semiconductor business and floated it on the stock market in the same year.

Its roots go back much further, however: the business grew out of Siemens' long-standing electronics and research tradition, which began in the first half of the 20th century.

Quick response to changing times

In its early years Infineon focused primarily on memory chips, microcontrollers and communications semiconductors. In the early 2000s the company came under pressure from the crisis in the chip industry and in 2006 divested its memory-chip business, which continued as a separate company under the name Qimonda but later went bankrupt.

Infineon then revamped its strategy, increasingly targeting high-growth markets: energy-efficient semiconductors, power electronics, sensors and chips for the automotive industry.

Through acquisitions such as the purchase of US company International Rectifier in 2015 and US rival Cypress Semiconductor in 2020, Infineon further strengthened its position in areas such as electromobility, renewable energies and connected technologies.