Bookmark and Share


Investment bank Needham & Co. predicted in a note sent to clients on Monday that Infineon Technologies AG based in Munich, Germany, has plans to sell its memory business to Micron Technology of the U.S. and Nanya of Taiwan. According to the report, even Infineon’s fabrication plant is expected to be sold.

Needham & Co. said Micron would buy Infineon’s U.S. memory assets and Nanya, Taiwan’s second-largest memory chip maker, would buy its non-U.S. memory assets, including Infineon’s flagship plant in the German city of Dresden, Reuters reports. Neither of the companies confirmed nor denied the information, but if such plans come true, there will be a significant change with the alignment of forces in the market of dynamic random access memory (DRAM).

According to Gartner Dataquest research firm, Infineon commanded 13.5% of total DRAM market in Q3 2005 and posted approximately 13% revenue gain by its memory business. If Micron and Nanya acquire DRAM unit of Infineon, those 13.5% market share will be split between Micron, Nanya as well as outsourcing partners of Infineon – SMIC and Winbond who may resell the production to other companies. Given that both SMIC and Winbond use Infineon’s process technology, both may be obliged to sell their DRAM output to Micron and Nanya. This will help Micron to grab the world’s second largest memory market share with over 20% of shipments and will allow Nanya to become the fourth largest DRAM maker with more than 10% of the market, at least.

Memory unit accounts for approximately 40% of Infineon’s revenues. In the Q3 of fiscal 2005 the maker said its memory products posted sales growth, whereas products for communication, automotive, industrial and some other markets posted decline. Infineon’s revenues were about $1.876 billion (?1.61 billion), whereas net loss was $279.55 million (?240 million) in the quarter.

The decision is expected to be made at the meeting of Infineon’s board of directors on Thursday, the 17th of November, 2005. However, the final decision may be postponed by months.


Comments currently: 0

Add your Comment

Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month