German chipmaker Infineon posts record revenue as AI fuels growth

German semiconductor manufacturer Infineon reported record third-quarter revenue on Wednesday, driven by booming demand from AI data centres and a recovery in automotive orders.

Revenue rose 13% year-on-year to a record €4.2 billion ($4.8 billion) in the three months to June, while net profit climbed 39% to €423 million.

"Infineon concluded the third quarter of the 2026 fiscal year with record revenue and continues its growth trajectory," said chief executive Jochen Hanebeck. "

"Our power supply solutions for AI data centres remain in very high demand and continue to be our most important growth driver. In addition, rising investment worldwide in grid infrastructure is providing tailwinds."

Automotive, Infineon's largest division and the source of nearly half its revenue, saw orders accelerate after being hit by the car industry's downturn. Growth was much stronger in Power & Sensor Systems, where revenue rose by about a third year-on-year on demand from AI servers and data centres.

The company said it also expects its recently opened semiconductor plant in Dresden, inaugurated just over a month ago, to support future growth.