<div id="readability-page-1">Infineon Technologies is benefiting from rising demand tied to AI data centers and software-defined vehicles (SDVs), with earnings of €3.812 billion (~$4.46 billion) for the quarter ended March 31st, 2026, up 4% from the previous quarter. The company also expects significant year-on-year revenue growth for fiscal year 2026, projecting revenue above €16 billion ($18.72 billion), driven primarily by strong demand for power supply solutions in data centers.In prepared remarks in the earnings release, Jochen Hanebeck, CEO of Infineon, said, “In the second half [of FY2026], we will grow more strongly than previously expected, with a broader upcycle across many end markets now in sight. The AI boom strengthens further, and our power supply solutions for AI data centers are in very high demand. The expansion of power infrastructure is gaining momentum and is becoming an increasingly important growth driver for our industrial business. In automotive, we are seeing positive developments, especially in software-defined vehicles, dampened by a challenging high-voltage business for e-mobility. Further market share gains in automotive confirm [that] we are overall on the right track. We are entering the second half of the year with confidence, while continuing to closely monitor geopolitical and macroeconomic risks.”Along with its earnings, Infineon announced a reorganization of its business segments. In the analyst briefing, Hanebeck said, “Effective July 1st, we will be changing our divisional structure and organizing our business into three divisions instead of the previous four, namely, automotive, power systems, and edge systems. This reorganization is the next logical step of our evolution, moving beyond a merely product-centric mindset toward solutions based on a deep understanding of our systems.”He added, “With the three divisions and clear responsibilities for our focus applications, we’re gaining speed, simplifying decision-making processes, reducing coordination efforts, and can better leverage our deep system understanding even more effectively. Based on the 2025 financial figures, this new structure corresponds to a revenue breakdown of approximately 50% to automotive, 30% for power systems, and 20% for edge systems. The new divisions can thus also leverage economies of scale.”In terms of the new structure, the automotive division will assume a limited number of automotive-specific applications in the on-board charger area from other segments, while otherwise largely maintaining its existing scope. Power systems will cover all non-automotive applications in which power semiconductors are the system-defining element, including power supplies for AI data centers, power generation, and grid infrastructure, as well as other industrial and communications applications.The power systems group will be formed by merging the green industrial power segment and the power part of the power and sensor systems segment. Edge systems will focus on applications that connect the physical with the digital world, involving the interplay of microcontrollers, sensors, connectivity, and security, such as edge AI, robotics, industrial automation, and home appliances. The edge systems group will be created by combining the connected secure system segment with the sensor, RF, and USB business from the power and sensor systems segment.Infineon’s CEO acknowledged that EV adoption slowed down, but its automotive segment revenues still rose slightly during the second quarter of 2026. He said, “The trend toward electromobility also remains intact. However, the adoption of electric vehicles is proceeding more slowly than expected. Market pressure is particularly pronounced for high-voltage power semiconductors for the electric powertrain. Intense competition, driven in part by the significant expansion of the manufacturing capacity in the sector and the shift in attitude toward e-mobility promotion, has led to prices and volumes falling faster than expected. As a result, the profitability level in our automotive high-voltage business is unacceptable to us. That is why we are fundamentally realigning it.”Does this indicate a shift in automotive strategy? Hanebeck emphasized that Infineon remains committed to electromobility and will continue to drive it forward, but said, “We will not chase market share at any cost.” He added, “Our focus remains on profitable growth. Second, the situation described is limited exclusively to high-power voltage—high-voltage power semiconductors, which account for about 7% of the automotive revenue. It does not affect other products such as microcontrollers, analog semiconductors, and sensors in any way, not even MOSFET transistors.”In the analyst call, Hanebeck drew a clear distinction between this, and the upside Infineon sees from the adoption of SDVs, illustrating the point with customer examples at BMW and Geely. Referring to the new BMW iX3 on the Neue Klasse platform, he said, “The Neue Klasse features our AURIX and TRAVEO microcontrollers, the connectivity from the BRIGHTLANE family, our power management ICs, as well as smart power switches and eFuses. And of course, it has an electric powertrain. This just demonstrates how closely the two structural trends in the automotive sector, software-defined vehicles, and electromobility are actually intertwined.”On Geely, highlighting China’s importance as a market, he added, “We’re also very pleased about recent design wins with the leading Chinese automaker, Geely. These include a large number of microcontrollers and analog semiconductors. These are used, among other things, in battery management systems and central control units in various Geely vehicle models and brands. These successes underscore the strong value proposition that Infineon offers to its Chinese customers.”Infineon’s second-quarter results and full-year forecast illustrate just how much the company is benefiting from the industry’s insatiable appetite for power, both for energy infrastructure and AI data centers.Infineon’s green industrial power division recorded 15% quarter-on-quarter growth in the second quarter of 2026, driven by stronger demand for power infrastructure, heating, ventilation and air conditioning systems, and home appliances. Meanwhile, its power and sensor systems segment posted 8% quarter-on-quarter growth, which the company attributed to sustained demand from AI servers and data centers, alongside rising demand for automotive radar sensors, mobile devices, and power semiconductor applications more broadly.Here’s what Hanebeck had to say on the analyst call on those two points:Discussing growth in the green industrial power segment, he said, “The expansion of AI data centers is fueling demand for uninterruptible power supplies and cooling systems. And in some cases, semiconductors are ideally suited to replace electromechanical components. Infineon is ideally positioned to capitalize on this trend. We’re seeing strong demand for semiconductor-based power converters, so-called solid-state transformers. They enable higher efficiency, significantly greater power density, and improved scalability. As a result, they will increasingly replace conventional transformers.”On AI data centers, Hanebeck said, “Sustained high levels of investment in AI data centers and the associated infrastructure are driving demand. And currently, our AI-related business is in allocation. We’re shifting spare manufacturing capacity from other areas while simultaneously ramping up new capacity as quickly as possible. We, therefore, confirm our revenue forecast for power solutions for AI data centers, €1.5 billion (~$1.8 billion) in this fiscal year as well as €2.5 billion (~$2.9 billion) in fiscal year 2027 despite a weaker U.S. dollar.”He also said that Infineon has ramped up its gallium nitride (GaN) solutions for AI data centers, and that the company was already supplying increasing volumes of these solutions to select customers. He commented, “More and more customers are actually incorporating our [GaN] solutions across multiple stages of power conversion. This is where gallium nitride makes a clear difference in performance.”Any discussion of wide-bandgap semiconductors inevitably turns to silicon carbide (SiC). Hanebeck said, “Demand for silicon carbide solutions from AI-related applications is also very strong. Our silicon carbide business at Infineon is benefiting from this in the current fiscal year with low double-digit growth numbers. These developments underscore our excellent market position. We collaborate with leading companies in the AI ecosystem and are represented in virtually all platforms of the relevant key players.”He then talked about the semiconductor values per kilowatt of installed power, which lie in the range of $100 to $250, and noted that the average is now around $175. This indicates a potential addressable market size for Infineon of between €8 billion (~$9.4 billion) and €12 billion (~$14 billion) by the end of the decade.In the analyst Q&amp;A, Sven Schneider, CFO of Infineon, addressed a question on the tightening helium supply and whether it was affecting the company. He said the industry had learned lessons from the Covid-19 period on the importance of multi-sourcing strategies and diversified supplier networks, rather than relying on individual providers.He said, “This is something that we do with helium as well. We see that, but we can always work around such problems. So, from our current standpoint, we don’t have any material effects. But as Hanebeck alluded to earlier on, we have been witnessing price increases, for instance, for copper, for gold, for the gases that you spoke about for logistics and freight. We see substantial cost increases. However, they are also factored into our outlook.”Given all of this, Infineon’s CEO lifted the full-year 2026 forecast. “For fiscal 2026, we now expect revenue of more than €16 billion [~$18.8 billion], which is, of course, a significant increase over the previous year,” Hanebeck said. “In 2025, Infineon generated approximately €14.7 billion (~17.3 billion) in revenue.”He continued, “We’re seeing higher order volumes, which are leading to a growing order backlog. As customer orders for the coming quarters are building up encouragingly, our outlook beyond the current fiscal year is also improving. In the automotive sector, we see manufacturers replenishing their semiconductor inventory to reasonable levels. On the supply side, localized bottlenecks are emerging, particularly in areas adjacent to product categories related to the AI boom. Of course, the dynamics vary across different application areas, but we expect a broader upswing to be on the horizon.”He expressed caution about the automotive business, saying it was “expected to post slight revenue growth, driven by its broad product portfolio and the continued proliferation of software-defined vehicles on the one hand, but weighed down by the decline in our high-voltage business on the other hand.”Ams Osram Sells Sensor Business to Infineon to Focus on Digital PhotonicsInfineon’s Jochen Hanebeck: ‘Be Authentic; Substance Matters’Infineon CEO Talks ‘Game Changing’ GaN and MoreNitin Dahad is editor-in-chief of EE Times. An electronic engineering graduate from City University, he’s been an engineer, journalist and entrepreneur. He was part of ARC International’s startup team and took it public, and he co-founded a publication called The Chilli in the early 2000s. Nitin has also worked with National Semiconductor, GEC Plessey Semiconductors, Dialog Semiconductor, Marconi Instruments, Coresonic, Center for Integrated Photonics, IDENT Technology and Jennic. Nitin also held a role with government promoting U.K. technology globally in the U.S., Brazil, Middle East and Africa, and India. Follow Nitin on LinkedInYou must Register or Login to post a comment.This site uses Akismet to reduce spam. Learn how your comment data is processed.</div>

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Infineon Technologies reported Q2 earnings of €3.812 billion, up 4% from the previous quarter, driven by demand for AI data centers and software-defined vehicles. The company projects FY2026 revenue above €16 billion, with a reorganization into three divisions: automotive, power systems, and edge systems, effective July 1st. CEO Jochen Hanebeck noted challenges in the high-voltage automotive segment but emphasized a commitment to profitable growth and the ongoing importance of electromobility. The new structure aims to enhance decision-making and leverage economies of scale across its divisions.

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Automotive and AI Lift Infineon Q2, Point to FY2026 Revenue Above $18B