[News] Infineon to Lift Prices Starting April 2026 Amid AI-Driven Power IC Tightness

Infineon Technologies is set to raise prices on certain products. According to TechNews, the company notified customers on the 5th that continued tight supply of power switches and related ICs, together with rising raw material and infrastructure costs, will prompt price adjustments starting in April 2026.

In the notice letter, Infineon said the rapid buildout of AI data centers has led to shortages for some of its products, requiring additional investments to expand fab capacity. The company added that the new prices will take effect on April 1, 2026, with all new orders placed on or after that date, as well as existing backlog scheduled to ship on April 1, reflecting the revised pricing.

Meanwhile, Infineon reported earnings on the 4th. According to Bloomberg, the company said it is stepping up investment in AI-related technologies as it works to diversify its business amid a prolonged downturn in automotive and industrial chip demand.

Bloomberg also notes that Infineon expects data center–related revenue to rise from about €1.5 billion in fiscal 2026, or roughly 10% of sales, to €2.5 billion in 2027. Rising demand from AI data centers is helping offset weakness in the automotive segment, which remains the company’s largest business, accounting for roughly half of total revenue.

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(Photo credit: Infineon)