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Infineon Tech Losing Memory Division

Infineon Technologies is betting that the parts are more valuable than the sum with a plan to separate its memory division from the rest of the company. Infineon joins Advanced Micro Devices, which has filed IPO registration documents for Spansion, its memory subsidiary that is a joint venture with Fujitsu. Other companies have sold their memory divisions outright, as Texas Instruments did when it sold its memory unit to Micron in 1998. Should be interesting to see what happens.

The German chipmaker announced Thursday its intention to spin off the memory division, which accounted for 41% of the company's total revenue in its latest third quarter. Infineon will concentrate on the logic business -- providing analog, mixed-signal and radio-frequency chips to the automotive and industrial electronics industries. "There are two essential reasons for taking this step," Chairman Wolfgang Ziebart said in a statement. "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."

The Street

Posted by | Thu, Nov 17, 2005 - 01:22 PM