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Infineon expects AI data center demand to withstand growing opposition

The German chipmaker forecasts 20% sales growth in its current fiscal year, driven by demand for chips used to power AI infrastructure.

Semiconductor components on a circuit board
Photo: Euronews

Infineon expects demand from AI data centers to keep supporting its business despite increasing opposition to their expansion, Chief Executive Jochen Hanebeck said on November 10, 2026. He said operators could build in other countries as resistance grows in the United States.

Speaking on an earnings call, Hanebeck described the debate as concentrated in America, while acknowledging concerns among people living near the facilities elsewhere. He said sparsely populated regions could offer locations for new projects and expected construction to become more geographically dispersed.

Opposition in the United States has focused on the environmental impact and energy requirements of data centers. Many Democrats who won in the recent midterm elections pledged to curb the projects.

Infineon supplies power chips that help move electricity from the grid into data centers, rather than the AI processors designed by companies such as Nvidia. The German company reported revenue growth of 12% for its fiscal year ending in September and projected sales growth of 20% for the current year, citing AI data center demand.

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Hao Chen

Technology Editor

Edits and reviews technology business stories: artificial intelligence, chips, big tech, software, cybersecurity incidents, start-ups and platform regulation.