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Infineon looks to AI for growth as auto demand slump drags on

Christina Kyriasoglou / Bloomberg
Christina Kyriasoglou / Bloomberg • 3 min read
Infineon looks to AI for growth as auto demand slump drags on
In a further move to diversify its business, Infineon said it had agreed to buy the automotive, industrial and medical sensor business of AMS Osram for US$673 million in cash.
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(Feb 4): Infineon Technologies AG said it will ramp up its investment in technology for artificial intelligence, working to diversify its business in a prolonged slump in auto and industrial chip demand.

The German chipmaker, which makes semiconductors used to power data centres, said it will raise investment to about €2.7 billion in the current fiscal year, up from a previously projected €2.2 billion, according to a statement on Wednesday.

The company expects data centre-related revenue to rise from around €1.5 billion in fiscal 2026 — roughly 10% of sales — to €2.5 billion in 2027. “This would equal a tenfold increase in our AI sales within just three years,” chief executive officer Jochen Hanebeck said in a media call.

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