Produced by Zhineng Zhixin

Against the backdrop of rapid AI development, the AI server market has become a hotspot for technological innovation and capital influx. Infineon has its own strategy in the AI server business.

It is projected that by FY25, its AI server business revenue will exceed €500 million and is expected to grow to €1 billion in the next two years.

Based on investor presentations, we will delve into Infineon's key strategies in the AI server sector and their far-reaching impacts from two aspects: business growth and market drivers, as well as technological innovation and product advantages.

Part 1

Business Growth and Market Drivers: Golden Opportunities in the AI Server Market

Infineon's development in the AI server business is particularly rapid, with a strong upward trend in its business revenue growth curve. This is inseparable from the widespread application of AI technology, which has driven the market demand for high-performance computing and efficient chips.

Infineon anticipates achieving over €500 million in AI server business revenue in FY25 and expects to surpass €1 billion in the next two years. This not only reflects its competitiveness in the market but also reveals the growing scale of the AI server sector.

With the continuous development of cloud computing, big data, and AI algorithms, the demand for computing power and efficiency in data center servers has surged, presenting a huge market opportunity for Infineon.

● The rapid development of AI servers is driven by a combination of market factors:

◎ Whether it's generative AI like ChatGPT or application scenarios such as video analysis and recommendation algorithms, AI servers require more efficient computational support.

◎ The energy consumption of data centers has been increasing year by year. By providing high-efficiency chip solutions, Infineon helps customers reduce energy consumption and carbon emissions.

◎ Through in-depth cooperation with top global CPU/GPU manufacturers and cloud service providers, Infineon has expanded its market share in the AI server sector. Its customer base covers multiple international renowned enterprises, laying the foundation for long-term stable growth.

Part 2

Technological Innovation and Product Advantages: Building Market Competitive Barriers

Power management is crucial in the core architecture of AI servers.

● Infineon's efficient power conversion technology covers the entire process from the grid to the core:

Infineon's AC/DC and DC/DC conversion technologies, combined with silicon carbide (SiC) and gallium nitride (GaN) materials, can significantly reduce power loss and improve conversion efficiency. The average efficiency of current systems is 85%, which can reach an optimized level of 90%-98% with the use of wide bandgap semiconductors.

These technologies provide stable and efficient power support for AI servers, enhancing performance and meeting the needs of green data centers.

● Infineon has launched a series of high-power density products designed for AI servers, earning it a leading position in the market:

◎ PSU Solutions: Providing efficient power modules ranging from 3kW to 12kW and above. In particular, the 12kW PSU solution boasts an efficiency of up to 97.5% and a power density of 113W/in³, setting an industry benchmark.

◎ 48V IBC Module: The first 48V bus converter module meets the growing power density demands of high-performance GPUs by optimizing system thermal management and increasing MTBF.

◎ Dual-Phase Power Modules: Modules such as TDM2254X and TDM2354X achieve higher power density and efficiency through innovative chip-embedded technology, significantly reducing system volume and module loss.

Infineon's products are not only forward-looking but also meet current needs. For example, the 12kW BBU module employs a patented topology design to achieve exceptional power density and efficiency, protecting servers in environments with power fluctuations.

Through modular design, its hardware and software systems can flexibly adapt to different application scenarios, promoting system cost-effectiveness and resource utilization.

Infineon's layout in the AI server sector not only showcases its technological innovation capabilities but also reflects its precise grasp of future market demands.

Whether it's the use of wide bandgap materials, the improvement of PSU efficiency, or in-depth cooperation with top-tier customers, Infineon's industry-leading position is evident. In the new AI-driven era, Infineon not only enhances performance through technology but also shapes development trends through market insights.

In summary, Zhineng Zhixin believes that Infineon's continuous efforts will drive AI server technology from performance optimization to an energy efficiency revolution. It will also become a key driver of green data centers in the future. The accelerated development of the AI industry will provide an even broader stage for Infineon, ensuring profit margins in this sector!