Infineon Doubles AI Revenue to $1.6 Billion as Thai Backend Plant and $1.12 Billion Divestment Redraw the Map

Infineon says AI-related semiconductor revenue roughly doubled to about $1.6 billion this fiscal year, as the stock climbs 70% since the start of 2026.

Infineon's semiconductor business tied to artificial intelligence has roughly doubled in the current fiscal year, reaching about $1.6 billion in revenue, the Munich-based chipmaker said at the AI & Technology Virtual Investor Conference on October 1. The figure underscores how quickly AI-adjacent applications have moved from a side bet to a central pillar of the company's strategy.

Power semiconductors, microcontrollers and sensors form the backbone of that push, with Infineon tuning its lineup to the demands of modern computing architectures. Raw compute is no longer the only battleground — data transfer speeds and sensor solutions are carrying growing weight.

USB, Optical Cables and a New Sensor Family

To speed up data exchange for complex image processing and machine learning, Infineon struck a pair of strategic partnerships on September 30. Working with ASMedia, the company is advancing USB 20 Gbit/s technology aimed squarely at machine-learning cameras and physical-AI systems. A second tie-up with EverProX targets a ten-meter optical USB active cable capable of carrying data at up to 20 Gbit/s over longer distances. A PCI Express Gen4 x4 reference design for add-in cards rounds out the system-integration effort.

Two days earlier, on September 28, Infineon broadened its motor-control portfolio for automotive and industrial markets with the XENSIV TLx49012 family of digital Hall angle sensors.

Feeding the Data Center's Power Appetite

Energy demand remains the central bottleneck for running AI infrastructure, and Infineon is expanding on that front as well. On September 30, the company disclosed it will supply silicon carbide power semiconductors to Eaton for the MVSST 2.0 solid-state transformer platform, designed for 800-volt DC architectures in Asia-Pacific data centers.

Manufacturing capacity for the widening portfolio got a boost on October 1, when Infineon and Thai Prime Minister Anutin Charnvirakul opened a new backend plant in Samut Prakan. According to dpa, the site starts with 350 employees, with headcount set to reach 1,000 as the first of five modules ramps up. The company said the complex is meant to extend and strengthen its global production network, and that the location could eventually grow into one of its largest backend facilities.

Portfolio Tidy-Up: NOR Flash and F-RAM Head to Winbond

In parallel, management is sharpening the core business. Mid-September brought an agreement to sell Infineon's NOR Flash and F-RAM operations to Winbond in a deal valued at $1.12 billion. Subject to regulatory approvals, both sides are targeting a close in the second half of 2027.

Micron's Tailwind Lifts the Whole Sector

The stock has ridden that momentum through the year. Since the start of 2026, the shares are up 70 percent. Last Friday, Infineon gained 7.8 percent to EUR 64.63, according to dpa-AFX, as upbeat quarterly results and an optimistic outlook from US memory chipmaker Micron Technology lifted the entire European semiconductor sector. Investors also bought into peers including ASML and STMicroelectronics. Over seven days, Infineon's advance adds up to 13 percent. In German trading today, the stock sits at EUR 64.17, a modest daily decline of 0.7 percent.

Sentiment on the analyst side remains constructive. On September 30, Jefferies' Janardan Menon reiterated a Buy rating with a EUR 96 price target, citing unabated semiconductor demand. He expects little further upside to company guidance and sees the fourth quarter as a possible cyclical peak — yet still counts Infineon among his preferred sector picks for fiscal 2027.

Hard numbers on the overall picture arrive soon: fourth-quarter fiscal 2026 results are due on November 10.