Infineon Technologies seeks accurate positioning through strategic business reorganization

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Infineon Technologies seeks accurate positioning through strategic business reorganization [Copy link]

Recently, the Supervisory Board of Infineon Technologies (Infineon) approved the proposal of the Management Board on the strategic reorganization of the company, which aims to create two independent and focused companies - the logic business company and the memory business company. This strategic reorganization reflects the changes in the market environment and business processes, and means a fundamental change in Infineon's target market. The memory product business will be split off and become an independent legal entity before July 1, 2006. After that, Infineon will first consider the initial public offering (IPO) of the memory product company. As the parent company, Infineon will focus on the logic business, including the automotive, industrial electronics and diversified markets (AIM) division and the communications (COM) division.

"This move is mainly based on two reasons: first, memory products and logic products are tending to develop in different directions in terms of business processes and business models; second, the growth momentum and profitability of both companies will be enhanced as a result," said Wolfgang Ziebart, Chairman of Infineon Technologies AG. "For the memory business, speed to market, production efficiency and direct access to capital markets are crucial. For logic products, the decisive factor is the in-depth understanding of the application areas and how to closely combine technological innovation with the unique needs of customers in their respective markets."

After the strategic reorganization, the memory product company will become an independent legal entity and can directly raise funds from the capital market, which will increase the flexibility of strategic cooperation and broaden financing options. The memory product business will first use its product research and development strength to expand its product portfolio and gradually increase the sales of high-profit products, such as products used in servers, graphics, consumer electronics and communications.

The memory products business also plans to further enhance its cost advantage by expanding the use of 300mm technology in manufacturing and accelerating the shift to smaller chip architectures.

The new company will continue to have its headquarters in Germany, and Dresden will continue to be the new company's technology research and development center. Luo Jianhua, member of the Infineon Management Board and head of the Memory Products Division, will be appointed to lead the new company.

Infineon's logic business includes the Automotive, Industrial Electronics and Diversified Market Division (AIM) and the Communications Division (COM). Infineon will further strengthen its core technology competitiveness in analog/mixed signal, power, RF and embedded controllers, combining these business advantages with professional capabilities in the following six major application areas: (1) automotive electronics, (2) industrial electronics and power management, (3) chip cards and security ICs, (4) RF solutions, (5) mobile communication platforms, and (6) broadband communications, so as to further develop customer-oriented solutions. Infineon plans to use the proceeds from the initial public offering of its future memory business to make targeted investments in expanding its logic business.

英飞凌逻辑业务在未来将实施选择性制造策略，对于在目前和将来都有显著竞争优势的技术，将对产品开发和制造能力持续投资。针对标准CMOS技术，英飞凌在沿用其德累斯顿和法国Essonnes制造工厂的同时，将加强与现有开发和制造伙伴的合作关系。例如，英飞凌在90纳米技术上与联华电子成功合作，在65纳米和45纳米技术上与Chartered半导体、IBM和三星成功的技术联盟。目前，英飞凌并无意向投资自有的65纳米生产线。