Infineon Technologies expects data center revenue to jump from €1.5 billion in FY2026 to €2.5 billion in FY2027, driven by accelerating AI infrastructure demand across Europe.
German chipmaker Infineon is capitalizing on the continent's AI buildout, with data center revenue projected to grow 67% year-over-year. The forecast reflects strong demand for semiconductors powering data centers as enterprises expand AI computing capabilities.
Infineon joins European peers STMicroelectronics and NXP in benefiting from the infrastructure wave. The three chipmakers are positioning themselves as alternatives to Asia-dominant suppliers, leveraging geopolitical concerns and EU industrial policy favoring domestic semiconductor production.
The revenue growth underscores how AI adoption is reshaping chip demand globally. Data center operators are racing to build out capacity for training and inference workloads, creating sustained orders for power management, networking, and computing chips.
Infineon's expansion aligns with the EU's push to reduce semiconductor dependence on Taiwan and South Korea. The bloc has rolled out subsidies and support programs to strengthen its chip industry as AI competition intensifies.
The company's forecast also signals confidence in sustained data center spending through 2027. Cloud providers and hyperscalers continue committing billions to AI infrastructure despite economic uncertainty, suggesting the cycle has room to run.
For Infineon, the growth opportunity presents a chance to diversify revenue beyond automotive—its traditional stronghold. The data center segment now ranks as a critical growth driver alongside industrial and automotive electronics.
EU chipmakers face execution risks in scaling production to meet demand, with new fabrication facilities still ramping. Infineon and peers must deliver on expansion plans while managing supply chain complexity and manufacturing costs.
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