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Infineon's Supervisory Board agreed to a proposal from the
Management Board concerning the company's strategic realignment. The objective
is to create two focused and independent companies, one for Logic and one for
Memory Products.
The realignment reflects fundamental shifts in Infineon's
target markets, characterized by changing market conditions and business
processes. The Memory Products business will be carved out as a legally
independent entity by July 1, 2006.
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WOLFGANG ZIEBART
Plans to improve growth
and profitability potential
for both companies
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As a next step, Infineon will consider an IPO of the Memory
Products Company as the preferred option. Infineon, as the parent company, will
focus on the Logic business, comprising the business groups Automotive,
Industrial Electronics and Multimarket (AIM) and Communications (COM).
"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.
"For Memory Products, 'time-to-market',
manufacturing efficiency and direct access to capital markets are essential. For
Logic products, 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," he said.
Logic includes the business group Automotive, Industrial
Electronics and Multimarket (AIM) and the business group Communications (COM).
Infineon will further strengthen its core technological competencies in
Analog/Mixed Signal, Power, RadioFrequency and Embedded Control.
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