Infineon Technologies AG CEO Jochen Hanebeck told a Munich industry gathering on Nov. 9 that customers must commit before the chipmaker expands capacity further, Reuters reported, citing the financial risk of expansion.
Hanebeck said manufacturers could not carry that risk alone. “There are limits to what we can shoulder,” he said, according to Reuters.
Infineon plans €3 billion to €3.5 billion in fiscal 2027 investment, depending on expected customer demand. The company’s measure includes property and equipment, intangible assets and capitalized development costs. Its manufacturing plans cover Dresden, Germany; Kulim and Melaka, Malaysia; Villach, Austria; and Bangkok, Thailand. Infineon has not assigned amounts to those sites in the investment range.
The plans follow the July opening of Infineon’s €5 billion Dresden factory. The company said the plant doubled its manufacturing capacity at the site. In October, Infineon announced a separate plan to invest about €1.1 billion by 2034 in gallium nitride chip production at its existing Villach facilities, with production scheduled to begin by the end of 2027.
The European Commission approved €319 million in Austrian aid for the Villach project. It said public support was needed for the investment to take place in Europe and that the aid would benefit the wider European semiconductor supply chain. Infineon said Austria’s formal funding commitment was still pending.
Infineon forecast about €20 billion in fiscal 2027 revenue, including close to €4 billion from data center power supplies. For the fiscal year ended Sept. 30, 2026, it reported €16.353 billion in revenue, up 12% from a year earlier. The company lists Feb. 3, 2027, as the preliminary date for its next fiscal results release.
