Annual press conference at electronica, Munich, November 10, 2026
Infineon used its annual press conference to set out a fiscal 2027 outlook that implies a step change in scale and profitability. CEO Jochen Hanebeck guided to revenue of around EUR 20 billion, an increase of more than 20% from the EUR 16.353 billion reported for fiscal 2026. The company expects a segment result margin in the mid-20s percentage range, about 5 percentage points above the 19.7% achieved in fiscal 2026. Management also plans fab investments of EUR 3 billion to EUR 3.5 billion and R&D spending of about EUR 2.8 billion. The message was that growth is being driven by structural demand in power and AI infrastructure on top of a cyclical recovery, and that management believes the capacity needed to serve it is largely in place.
AI data center power: the engine of the guidance
The most consequential disclosure concerned AI-related power supply. Revenue from power supply solutions for AI data centers rose to EUR 1.7 billion in fiscal 2026, more than double the prior year and slightly more than 10% of group revenue. Classical data centers added about EUR 500 million. Infineon expects combined data center power revenue to grow from EUR 2.2 billion to close to EUR 4 billion in fiscal 2027.
Hanebeck said the demand is being locked in over the long term. Leading customers across the ecosystem are entering multiyear supply arrangements and capacity reservations, and the combined volume of agreements already signed or under negotiation "has now exceeded EUR 10 billion." He added that Infineon was unable to meet all customer requests in fiscal 2026 despite ramping production. Andreas Urschitz said the agreements span silicon, silicon carbide and, increasingly, gallium nitride, covering the whole chain "from grid to core." He argued that power semiconductors directly affect the cost per token for large data center operators.
CFO Sven Schneider offered useful context on how aggressive the AI assumption actually is. Infineon generated EUR 800 million of AI revenue in the fourth quarter of fiscal 2026 alone. Annualized, that is about EUR 3.2 billion, so the EUR 4 billion target requires solid but not extreme growth from the exit rate. Schneider also noted that automotive is expected to grow in the mid-single-digit percentage range, so the guidance does not rest on AI alone. On the order backlog, which Infineon no longer reports in line with sector peers, he would only say that it is higher than in the previous quarter. The company had cited about EUR 30 billion at the last quarterly update.
Technology milestones in GaN and silicon carbide
Infineon is investing about EUR 1.1 billion in its Villach site, which Hanebeck said will host "the world's first high-volume production of gallium nitride power semiconductors on 300-millimeter wafers." The company is also working with NVIDIA on GaN-based power conversion for next-generation 800-volt DC data center architectures, which Hanebeck said cut power loss and save space as AI racks move toward gigawatt-scale power levels.
A day earlier, Infineon announced that it had processed 300-millimeter silicon carbide wafers into functional power semiconductors at Villach. Hanebeck said it is the first company to do so in a full-scale fab using existing manufacturing equipment. Commercial timing and yield were not discussed, so the milestone is best read as a cost and scale option rather than a near-term earnings driver. The company also highlighted a Siemens semiconductor circuit breaker using Infineon silicon carbide switches, which Hanebeck said is 1,000 times faster than conventional breakers and switches off in 1 microsecond.
Pricing turns into a tailwind
One of the executives answering a question about industry warnings of price increases for automotive chips was direct that scarcity has widened. "The scarcity is going far beyond power semiconductors in 2026," he said, citing spillover from data center and grid demand into adjacent product segments. Infineon pushed through price increases in April and July, mainly on power semiconductors, and is now in volume and price negotiations with major OEMs. For 2027 the executive said the company expects "a positive price environment," but declined to give figures before talks conclude.
Hanebeck sought to reassure automotive customers that they will not be deprioritized. He said the capacity expansion "has been timed to perfection" and that Infineon can serve all markets without a mass redistribution of supply. Asked about reported production stoppages at a carmaker in Italy, Elke Reichart said she was not aware of any Infineon-related incident and that automotive customers have described Infineon as a reliable supplier.
Capacity and supply chain
The Dresden smart power fab opened this summer and, once fully built out, will double production capacity at the site. Management said the clean rooms are ready and the focus now is on filling them with tools. A new back-end hub near Bangkok adds assembly and test capacity. An executive said Infineon is not currently considering a further front-end site and serves the U.S. market through manufacturing partners there. On raw materials, Hanebeck said Infineon engaged suppliers early, hedged what was needed and uses multi-sourcing, and that tariffs are "just one small element" in the broader equation.
Fiscal 2026 adjusted free cash flow was EUR 1.9 billion, or 11.8% of revenue, in line with the target operating model. That figure excludes the acquisition of the automotive sensor portfolio of ams OSRAM and investment in the Dresden fab. Revenue in the fourth quarter, the strongest of the year, exceeded the first quarter by more than EUR 1 billion.
Automotive and physical AI
Infineon held a 36% share of the automotive microcontroller market in 2025, according to Hanebeck, and used the event to introduce a new microcontroller platform built on the open RISC-V architecture for software-defined vehicles. Management cited solid automotive order intake and growing EV adoption in Europe, India and Southeast Asia, helped by higher gasoline prices and cheaper models.
In robotics, Infineon showed a pilot with Munich-based Agile Robots, whose mobile two-arm robot handles power modules in Infineon's back-end manufacturing and loads bonding machines. Agile Robots CEO Zhaopeng Chen said the pilots are still evaluating precision and repeatability, and that scaling depends on stable performance, viable economics and integration into existing workflows. No commercial terms or timelines were given, and robotics remains an option rather than a contributor to the guidance.
Risks, regional exposure and the share price
Asked about political resistance to data centers in the U.S., Hanebeck acknowledged that the pushback is real but called it "a rather American-centric topic." He expects operators to diversify geographically, noting expansion in China, India, the Arabian Peninsula, Australia and Europe, and said Infineon is well positioned in Chinese data centers despite local competition. Schneider confirmed that a good portion of AI revenue comes from U.S. customers in the U.S., which leaves a concentration that investors should keep in mind.
Hanebeck was candid about market volatility. He said token prices may commoditize, that it is unclear which models and which processor suppliers will prevail, and that the capital market is trying to identify future profit pools that "are not necessarily going to be the same ones as today." He expects U.S. data centers to focus more on energy efficiency, which favors Infineon, and more AI processing to move to the edge.
On the share price, Schneider said the stock moved back above EUR 50 this morning after falling from its late-June peak, versus historical levels around EUR 20 to EUR 30. He said the multiple relative to semiconductor peers has recovered, hinted that something to be communicated tomorrow signals management sees upside, and gave no further detail. Hanebeck said intellectual property protection is a priority, achieved through employee training and keeping certain development work on site, but he had no detailed information on the NVIDIA case raised by a journalist.
On German policy, Hanebeck criticized subsidy bureaucracy, noting that the Dresden building shell was already finished by the time subsidies were granted, and called for lower costs and deeper European market integration.