- Company name
- Infineon Technologies
- Sector
- Semiconductors: power, automotive and sensor chips
- About
- Infineon is a German semiconductor company. It makes power semiconductors, microcontrollers, sensors and security chips for cars, data centers, energy infrastructure, industrial machines and consumer devices. In the fiscal year to September 30, 2026, revenue was €16,353 million. Automotive gave €7,672 million, Power & Sensor Systems €5,670 million, Green Industrial Power €1,703 million and Connected Secure Systems €1,308 million. Since July 1, 2026, Infineon is organized in three new segments: Automotive, Edge Systems and Power Systems. It is a leader in power chips made of silicon, silicon carbide and gallium nitride. Products for AI servers and data centers are the main growth driver. Infineon reports in euros under IFRS, and its shares trade in Frankfurt. IFNNY is an ADR on the OTCQX market in the United States, and one ADS represents one share. Infineon had about 58,100 employees at the end of September 2026. The head office is in Neubiberg, near Munich. Jochen Hanebeck is Chief Executive Officer.
- Thesis
- Infineon trades close to its intrinsic value because investors expect a strong upturn, driven by power chips for AI data centers, but they are careful about the car market and the cost of new factories. For the fiscal year to September 30, 2027, Infineon expects revenue of about €20 billion, more than 20% growth, with close to €4 billion from data center power supplies, and a Segment Result Margin in the mid twenties percentage range, against 19.7% in fiscal 2026. For the value to grow, three things must be true. Data center demand must stay strong, so that revenue reaches about €20 billion. Car production must recover, because Automotive gives almost half of revenue. Investments of €3.0 billion to €3.5 billion in Dresden, Kulim and Villach must fill with orders, so that margins rise as planned. The Q1 FY 2027 report, expected on February 3, 2027, is the next test. If the upturn holds through 2027, the value can grow with the earnings.
- Risks
- Demand for chips is cyclical. If car production or industrial demand falls, revenue and margins can fall fast, because factories have high fixed costs.
A large part of the growth comes from power supplies for AI data centers. If AI spending slows, the planned growth of the Power Systems segment can stop.
Infineon plans investments of €3.0 billion to €3.5 billion in fiscal 2027. If demand is lower than planned, the new capacity can lower margins and free cash flow.
Chinese companies compete strongly in silicon carbide and other power chips, and trade rules between China, the United States and Europe can reduce sales or raise costs.
The sale of the NOR Flash and F-RAM memory business to Winbond needs regulatory approvals and is expected to close in the second half of 2027.
Infineon reports in euros, and its outlook assumes $1.15 per euro. A weaker U.S. dollar lowers revenue in euros, and a stronger euro lowers the value of each ADS in U.S. dollars.
- Balance sheet
- Cash: €2.1B
Debt: €6.9B
Net debt: €4.7B
Ratings: S&P BBB+ (stable outlook)
Infineon funds itself with bonds, hybrid capital, bank loans and cash flow. At September 30, 2026, financial debt was €6,850 million, and gross cash, which includes cash and financial investments, was €2,137 million, so net debt was €4,713 million. Net debt fell from €5,185 million at June 30, 2026, because free cash flow was €656 million in Q4, although Infineon paid €564 million for the sensor portfolio of ams OSRAM. Cash flow from operating activities was €4,137 million in fiscal 2026, and payments for property, plant and equipment and other intangible assets were €2,567 million. Total equity was €18,575 million. S&P rates the long-term issuer credit BBB+ with a stable outlook. Infineon plans investments of €3.0 billion to €3.5 billion and expects free cash flow of about €1.8 billion in fiscal 2027. The planned dividend of €0.38 per share costs about €494 million. There were 1,305,921,137 shares issued, including 5,265,744 treasury shares, at September 30, 2026.
As of 2026-09-30.
- Checkpoints
- Nov 10, 2026: FY 2026 results and FY 2027 outlook. Passed. Watch: An outlook for revenue growth of 10% or more in fiscal 2027 passes; an outlook for flat or lower revenue fails. Outcome: Infineon expects revenue of about €20 billion in fiscal 2027, more than 20% growth.
Feb 3, 2027 (estimate): Q1 FY 2027 results. Pending. Watch: Revenue of about €4.6 billion and a Segment Result Margin near 23% pass; a cut of the fiscal 2027 outlook fails.
Nov 2027 (estimate): FY 2027 results. Pending. Watch: Revenue of about €20 billion and a Segment Result Margin in the mid twenties pass; a margin below 22% fails.
- Recent events
- 2026-11-10: Infineon reported results for Q4 and the fiscal year 2026. Q4 revenue rose 19% to €4,706 million, and the Segment Result Margin was 23.8%. For the year, revenue rose 12% to €16,353 million, adjusted EPS rose to €1.73 from €1.39, and free cash flow was €993 million. For fiscal 2027, Infineon expects revenue of about €20 billion and a Segment Result Margin in the mid twenties percentage range. The board will propose a dividend of €0.38 per share, €0.03 more than a year earlier.
2026-11-09: Infineon said that it processed 300-millimeter silicon carbide wafers into working power devices at its fab in Villach, Austria, with its existing silicon equipment. A 300-millimeter wafer gives 2.3 times as many chips as a 200-millimeter wafer.
2026-11-02: Infineon signed a technology agreement with Qualcomm Technologies to develop central car computers for software-defined vehicles.
2026-10-27: Infineon said that it will invest about €1.1 billion by 2034 in its Villach site to make gallium nitride power semiconductors on 300-millimeter wafers in high volume. Production is planned to start by the end of 2027.
2026-10-21: Infineon expanded its work with NVIDIA on 800 volt direct current power systems for AI data centers.
2026-09-16: Infineon agreed to sell its NOR Flash and F-RAM memory business to Winbond Electronics for $1.12 billion in cash, on a cash and debt free basis. The parties plan to close the sale in the second half of 2027, after regulatory approvals.
2026-08-05: Infineon reported Q3 FY 2026 results. Revenue rose 9% from the previous quarter to a record €4,172 million, and the Segment Result Margin was 19.1%. Infineon said that it had signed, or was negotiating, multi-year capacity reservation agreements with leading AI customers, with a total revenue volume of a high single-digit billion euro amount.