German semiconductor manufacturer Infineon Technologies has reported record quarterly revenue and a sharp increase in profit, as demand for chips used in artificial intelligence (AI) data centres, electric vehicles and energy infrastructure continued to strengthen.
The Neubiberg-based company said third-quarter revenue for its fiscal year rose 13% from a year earlier to €4.2 billion. Net profit climbed 39% to €423 million, reflecting stronger demand across several of its key markets.
Chief Executive Jochen Hanebeck said business conditions had improved significantly, with the recovery now gaining momentum.
“More and more of our target markets are showing a positive trend,” Hanebeck said, pointing to strong demand for power supply solutions used in AI data centres as the company’s leading growth driver. He added that expanding investment in global network infrastructure had also supported sales, while orders from the automotive sector were beginning to recover.
Infineon’s automotive division remains its largest business, generating nearly half of the company’s total revenue. The unit had faced pressure during the slowdown in the global car industry, but recent figures indicate that customer demand is improving.
The company’s Power & Sensor Systems division delivered even stronger performance, recording growth of about one-third compared with the same period last year. Rising investment in servers and the rapid expansion of AI-focused data centres have boosted demand for advanced semiconductor components used in power management and sensing technologies.
Infineon’s latest results highlight the growing importance of specialised chips in industries undergoing digital and energy transformation. Its products are widely used in electric vehicles, renewable energy systems, industrial equipment and modern computing infrastructure.
The company has undergone a significant transformation since its creation in 1999, when Siemens spun off its semiconductor business. While Infineon initially focused on memory chips, microcontrollers and communications semiconductors, the early-2000s downturn in the global chip industry forced a major strategic rethink.
In 2006, it separated its memory chip business into Qimonda, which later became insolvent. Following that setback, Infineon shifted its focus toward higher-growth markets, including power electronics, energy-efficient semiconductors, automotive technologies and sensor solutions.
The company also expanded through acquisitions, including the purchase of US-based International Rectifier in 2015 and Cypress Semiconductor in 2020. Those deals strengthened its position in electric mobility, renewable energy, industrial automation and connected devices.
As investment in AI infrastructure continues to accelerate and the automotive industry adopts more advanced electronics, Infineon appears well placed to benefit from long-term demand. The latest financial results suggest the company’s strategic shift over the past two decades is continuing to deliver strong commercial gains.
