Summary
- Infineon forecasts approximately €20bn of group revenue in fiscal 2027, including nearly €4bn from data centre power supplies.
- Fiscal 2026 revenue reached €16.353bn, with a 19.7% segment result margin.
- Planned investment of €3bn–€3.5bn will support the wider business, not exclusively data centre semiconductor production.
Infineon Technologies expects revenue from data centre power supplies to approach €4bn in fiscal 2027, as demand for electrical components supporting AI computing continues to increase.
The German semiconductor manufacturer forecasts group revenue of approximately €20bn for the financial year, compared with €16.353bn reported for fiscal 2026. The outlook represents expected growth of more than 20%, supported by data centres, power infrastructure, and software-defined vehicles.
Infineon reported a segment result of €3.223bn for fiscal 2026, equivalent to a margin of 19.7%. Fourth-quarter revenue reached €4.706bn, with a segment result of €1.119bn and a margin of 23.8%.
The company expects its segment result margin to rise into the mid-20% range during fiscal 2027. Its forecast assumes a euro-to-dollar exchange rate of approximately €1 to $1.15.
Planned investment for the coming financial year is between €3bn and €3.5bn. Infineon also expects adjusted free cash flow of around €2.2bn, reflecting the anticipated improvement in revenue and operating performance.
The projected €4bn data centre figure concerns power supply products rather than the processors undertaking AI calculations. It therefore provides a separate indication of the demand for electrical infrastructure supporting dense computing installations.
AI racks require increasingly demanding power electronics
Power semiconductor devices are used throughout data centre electrical systems, including voltage conversion, current control, power supplies, and components that support the operation of cooling equipment.
As individual computing racks become more electrically demanding, distribution systems must deliver greater amounts of power while managing losses, temperature, voltage stability, and protection requirements.
The transition towards higher-voltage electrical architectures creates demand for specialised switching and conversion components. Those systems need to be integrated with the equipment delivering electricity to processors and other computing hardware.
Infineon has been expanding its portfolio for such applications, including devices intended for emerging high-voltage AI infrastructure.
The market is influenced both by new data centre construction and by upgrades within existing facilities. An operator may invest in more advanced power electronics without constructing a separate building, particularly when increasing computing density within established space.
Consequently, semiconductor revenue should not be converted directly into new data centre megawatts. Components have different values and applications, and their shipment does not establish when the associated computing equipment becomes operational.
Power systems also contain equipment supplied by multiple manufacturers. Semiconductor demand can therefore increase before the complete electrical installation is assembled or commissioned.
Manufacturing investment follows expected infrastructure demand
Semiconductor suppliers must align fabrication, packaging, testing, and component availability with demand from electrical equipment manufacturers and data centre system integrators.
The supply chain operates on different timescales from data centre construction. Components may be ordered during equipment development, while an end customer’s facility remains subject to planning, grid connection, or building works.
Infineon’s planned capital expenditure indicates a substantial wider investment programme, although the company serves multiple industrial and technology markets. Its full investment range should not be attributed exclusively to AI infrastructure.
The forecast increase in revenue also depends on performance outside data centres, including automotive applications and broader electricity infrastructure.
Financial guidance remains subject to customer demand, manufacturing execution, product pricing, and wider economic conditions. The nearly €4bn figure is an estimate for the coming fiscal year, not revenue already received or guaranteed through disclosed contracts.
The results nevertheless identify power electronics as a growing part of the capital expenditure associated with AI computing. Installing more processors also requires sufficient electrical infrastructure to deliver power reliably and efficiently.
Infineon’s forthcoming quarterly reports will show whether the data centre power supply business develops at the rate now forecast, and whether manufacturing investment is sufficient to support that demand.
