On February 4, Infineon announced on Wednesday that it will increase its investment in data center technologies to capitalize on opportunities arising from growing demand for artificial intelligence solutions and drive revenue growth. The investment amount will rise from the previously projected €2.2 billion to approximately €2.7 billion (about $3.2 billion). Infineon expects revenue from the data center segment to increase from about €1.5 billion (10% of total sales) in the current fiscal year to €2.5 billion by 2027. CEO Jochen Hanebeck stated that despite the overall market downturn, strong demand for AI is becoming a powerful driver for the company's development. The growing demand for AI data centers is helping Infineon alleviate pressure from weakness in its automotive business, which accounts for about half of its total sales. Previously, due to customers digesting inventory accumulated during the pandemic, demand remained sluggish for an extended period, and investors have been anticipating a rebound in these mature chip businesses. Infineon said in November that data center-related sales would double in 2026 compared to 2025, after having already tripled in the previous year.