Infineon expects more than 20% growth as data centre power nears €4 billion
Infineon expects revenue of about EUR 20 billion in fiscal 2027, which runs from October 2026 to September 2027. That would be an increase of more than 20%, driven by data centres, power infrastructure and software-defined vehicles. Revenue from power supplies for data centres alone is projected to reach close to EUR 4 billion.
Infineon closed fiscal 2026 with a record quarter, according to the company’s fourth-quarter report. Revenue rose by 19% YoY and by 13% QoQ to EUR 4.706 billion, while the segment result increased by 56% to EUR 1.119 billion, a segment result margin of 23.8%. For the full year, revenue rose by 12% to EUR 16.353 billion, with a segment result margin of 19.7%.
The strongest growth came from Power & Sensor Systems, where revenue rose by 25% from the previous quarter to EUR 1.796 billion. Infineon says demand for products for AI servers and data centres remained the main growth driver, and the segment’s margin rose to 30.8%. Automotive grew by 8% to EUR 2.089 billion, helped by products for software-defined vehicles and electromobility, while Green Industrial Power rose by 13% to EUR 503 million. Connected Secure Systems fell by 9%, which Infineon attributes to fluctuating project business in identity documents and payment cards.
“Supported by an ongoing cyclical recovery and strong demand in our structural growth areas, we expect a significant increase in revenue and profitability in fiscal year 2027,” says Infineon CEO Jochen Hanebeck.
Since July, Infineon has been organised into three segments: Automotive, Edge Systems and Power Systems. For fiscal 2027, the company expects Power Systems to grow significantly faster than the group, Automotive by a mid-teens percentage and Edge Systems by a low-teens percentage.
Infineon plans to invest EUR 3.0–3.5 billion during the year. The main items are equipment for ramping up production in the fourth manufacturing building in Dresden, expanding silicon carbide capacity in Kulim, Malaysia, and starting GaN production on 300 mm wafers in Villach, Austria. The company also plans to expand its backend sites in Bangkok, Thailand, and Melaka, Malaysia.
For the first quarter of fiscal 2027, Infineon expects revenue of about EUR 4.6 billion, which it describes as significantly better than usual seasonality, and a segment result margin of about 23%.
The forecast for 2027 does not take into account the planned sale of the NOR Flash and F-RAM business to Winbond, which is expected to close in the second half of calendar 2027.
