News
 

Bookmark and Share

(0) 

There is no secret that semiconductor industry cannot boast with huge profitability these days, which is why both Infineon, a chip giant from Europe, as well as Qimonda, a dynamic random access memory controlled by Infineon, will need to find investors from Asia to survive in the long term, said Max Kley, Infineon’s supervisory board chairman, in an interview.

In an interview with Sueddeutsche Zeitung, Mr. Kley revealed that Qimonda has been negotiating with an investor from a Chinese province who has sufficient capital and plans to establish a semiconductor fab in China. However, since Qimonda filed for insolvency in January, all the talks are now handled by insolvency administrator Michael Jaffé.

According to Mr. Kley, things are tough for Infineon as well: the company has to refinance over €1 billion of debts over the next couple of years, which will be hard to say at least due to global financial crisis. The company has attempted to merge with other players, such as Freescale or NXP, but it did not make a lot of sense due to rapid changes on the market.

There are proposals to create a European semiconductor giant, but Mr. Kley believes this hardly makes sense in the long term now that manufacturing is shifting to Asia.

“I don't think that this would be a good idea, [Infineon] of course is also looking [for merger partners] in Asia,” EETimes web-site quotes the supervisory board chairman of Infineon as saying.

Nevertheless, this all does not mean that chip industry should completely withdraw from Europe and the governments should not do anything about this process.

“We need more public aid. Government research subsidies should not be restricted to renewable energies. We should not forget that the semiconductor industry is a key industry for many other industry branches, namely the automotive industry,” Mr. Kley said.

Tags: Qimonda, Infineon, Business

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Thursday, August 21, 2014

10:59 pm | Khronos Group to Follow DirectX 12 with Cross-Platform Low-Level API. Khronos Unveils Next-Generation OpenGL Initiative

10:33 pm | Avexir Readies 3.40GHz DDR4 Memory Modules. DDR4 Could Hit 3.40GHz This Year

12:10 pm | AMD to Lower Prices of A-Series APUs for Back-to-School Season. New Prices of AMD A-Series APUs Revealed

Wednesday, August 20, 2014

10:53 am | AMD to Cut Prices on FX-9000, Other FX Processors: New Prices Revealed. AMD to Make FX Chips More Affordable, Discontinue Low-End Models

10:32 am | LG to Introduce World’s First Curved 21:9 Ultra-Wide Display. LG Brings Curved Displays to Gamers, Professionals

9:59 am | AMD Readies FX-8370, FX-8370E Microprocessors. AMD Preps Two New “Mainstream” FX Chips