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Infineon Technologies AG confirmed intention to leave the market of dynamic random access memory (DRAM) by creating two independent companies, one of which – the current memory unit after becoming independent – will be traded at stock-exchange. The company said that the move was conditioned by necessity to develop both businesses in different directions. The company that deals with logic will remain to be Infineon’s.

“There are two essential reasons for taking this step: first, the processes and business models for Memory and Logic are developing in diverging directions. Second, we improve the growth dynamic and profitability potential for both companies”, said Dr. Wolfgang Ziebart, chairman of the board of directors for Infineon Technologies AG.

Infineon will consider initial public offering (IPO) of the memory products company after July 1st, 2006, after the unit becomes independent. Infineon, as the parent company, will focus on the Logic business, comprised of the business groups automotive, industrial electronics and multimarket (AIM) as well as communications (COM).

Memory products require as fast as possible time-to-market, manufacturing efficiency and direct access to capital market, whereas logic products demand a profound understanding of applications, as well as a strict alignment of all innovation activities with customers’ individual requirements in their competitive markets is crucial, the chairman of Infineon explained.

“Both the Memory and the Logic businesses gain more room for action to consolidate and expand their market leadership in selected segments, to enhance customer orientation and to seize opportunities for more forceful growth,” said Dr. Wolfgang Ziebart.

Earlier this week it was reported that Needham & Co. said in a research note that 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.

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