Infineon prioritises AI and SDVs in 2026

The semiconductor industry continues to navigate between cyclical weakness in traditional markets and structural growth in emerging applications. Infineon’s 2026 Annual General Meeting reflected this dual reality: stable quarterly performance combined with a clear strategic realignment.

Even before the formal presentations began, the thematic direction was visible. A humanoid robot from Neura Robotics, a BMW Neue Klasse vehicle incorporating Infineon chips, and data centre components framed the stage. Artificial intelligence, AI infrastructure and software-defined vehicles were not only topics of discussion but tangible symbols of the company’s priorities.

Supervisory Board Chairman Dr Herbert Diess emphasised transformation as the defining force of the current era, highlighting decarbonisation and digitalisation as central drivers. CEO Jochen Hanebeck then outlined the strategic direction, building on financial results already published in early February.

Why is Infineon investing heavily in AI data centres?

Hanebeck identified AI infrastructure as a core growth driver, describing the market momentum as unprecedented. The power demand of advanced AI systems is increasing rapidly. By 2030, a single AI processor could require more than four kilowatts of electrical power, roughly twice the consumption of a domestic iron.

In large-scale data centres hosting thousands of processors, conventional power architectures approach physical limits. Infineon addresses the entire energy chain, from grid infrastructure to voltage conversion close to the processor. The portfolio includes silicon, silicon carbide (SiC) and gallium nitride (GaN) technologies, alongside analogue drivers, controllers and intelligent power switches.

In cooperation with Nvidia, Infineon is developing an 800-volt direct current architecture for AI data centres. Instead of multiple decentralised power supplies, a centralised high-voltage distribution system is envisaged, with voltage conversion taking place as close as possible to the processor to reduce losses.

Revenue from power supply solutions for AI data centres increased from €250 million in 2024 to more than €700 million in 2025. For 2026, revenue of approximately €1.5 billion is projected, rising to around €2.5 billion in 2027. The new Smart Power Fab in Dresden, scheduled to open in summer, is expected to play a key role in expanding production capacity.

Infineon and Lenovo expand SDV computing partnership

Infineon and Lenovo are expanding their collaboration to support high-performance computing platforms for software-defined vehicles. The joint approach targets autonomous driving from Level 2 to Level 4.

Benjamin Müller

What role does Automotive still play?

Automotive remains Infineon’s largest revenue segment, generating approximately €7.4 billion in fiscal 2025. According to TechInsights, the company holds a global market share of 13.5 per cent in automotive semiconductors.

However, the technological narrative is evolving. Hanebeck emphasised that AI-supported software is becoming central to vehicle functionality. While hardware remains foundational, differentiation increasingly stems from software capabilities.

New E/E architectures rely on central computing units and zonal control structures. Infineon supplies Aurix and Traveo microcontrollers, Brightlane Ethernet solutions, Optireg power management integrated circuits and Profet smart power switches.

The acquisition of Marvell’s Automotive Ethernet business strengthens Infineon’s position in high-speed in-vehicle communication. The planned €570 million acquisition of the non-optical analogue and mixed-signal sensor portfolio from ams Osram further expands capabilities across automotive, industrial and medical markets.

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Benjamin Müller

What does “physical AI” mean for semiconductors?

Physical AI refers to autonomous systems that perceive, interpret and interact with their environment. During the AGM, David Reger, CEO of Neura Robotics, discussed humanoid robotics applications alongside Infineon’s leadership.

Infineon addresses this emerging market with microcontrollers, power semiconductors, sensors, connectivity and security solutions. The addressable semiconductor value per humanoid robot is estimated at approximately US$500.

Many technologies developed for automotive and AI infrastructure applications, including energy efficiency, functional safety and real-time communication, are transferable to humanoid robotic systems.

How is Infineon positioning its portfolio and manufacturing strategy?

Infineon structures its business across three pillars:

• Power semiconductors (around 35 per cent of revenue)
• Analogue components and sensors (around 30 per cent)
• Control and connectivity, including microcontrollers (around 35 per cent)

Technologically, the company is scaling silicon carbide production to 200-millimetre wafers and gallium nitride to 300-millimetre wafers, aiming to improve cost efficiency and scalability.

Power semiconductors and analogue or mixed-signal products are largely manufactured in-house, while microcontrollers and connectivity components rely more heavily on foundry partners.

What to expect at the Automotive Computing Conference 2026

On 24 and 25 March 2026, the Automotive Computing Conference returns to Detroit. Industry experts from OEMs, suppliers and technology partners will discuss how SDVs, AI, virtualisation and new computing architectures are reshaping the automotive industry.

Benjamin Müller

Capital expenditure has been increased to €2.7 billion, underlining the priority given to AI-related capacity expansion.

Strategic outlook for fiscal year 2026

Infineon enters fiscal year 2026 from a stable financial position. Strategically, however, the centre of gravity is shifting. AI data centres are emerging as the primary growth engine, supported by software-defined vehicle architectures and physical AI applications.

Automotive remains a stable foundation, but it is no longer the sole focal point of expansion. The company’s growth strategy increasingly combines power electronics, intelligent control systems and scalable semiconductor manufacturing to address structural megatrends.