Infineon bets on AI boom to spur more lucrative chip sales

FILE PHOTO: Infineon headquarter is pictured before the annual results news conference in Munich, Germany, November 15, 2023. REUTERS/Michaela Rehle/File Photo

FRANKFURT (Reuters) - Germany's Infineon is banking on a boom in artificial intelligence (AI) to generate billions in revenue and drive future growth by selling higher price chips, CEO Jochen Hanebeck said on Friday.

"Conventional servers contain power semiconductors worth between $65-80. In an AI server, it's 850 to 1,800 US dollars, depending on the architecture," he told the company's annual general meeting, according to prepared remarks.

"With semiconductors for data centres, we expect to generate revenues in the low three-digit million euros range in the 2024 fiscal year. But in a few years' time, we expect annual revenues of around one billion euros." In the 2022/2023 financial year, Infineon presented record results, but scaled back its targets for 2023/2024 due to the weakening global economy.

(Reporting by Hakan Ersen; writing by Matthias Williams; editing by Rachel More)

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