Reports are circulating that Infineon Technologies AG (Germany) is considering spinning off its DRAM business, which has served as the company's main business for years. However, the volatility of the market caused two years of serious losses before the recent recovery. Even now, the company admits to battling low average chip prices and inventory issues.
While it is rumored that the business is "as good as gone," an announcement is expected within the next few weeks. Infineon, meanwhile, would not comment on the rumor. "It is something that analysts have been asking for, or at least offering as an option for Infineon, to optimize its share price, but we won't comment further on it," a company representative said.
The suggested DRAM sell would leave the company with more stable business units, such as its automotive and industrial group, which total $450 million in first-quarter sales. That segment is also more in-line with Infineon's new CEO, Wolfgang Ziebart, an auto-electronics player who spent time at BMW and automotive supplier Continental AG.
