Siemens Semiconductors Spins Off to Become Infineon Tech.
Siemens Semiconductors (Munich) announced that it will be spun off to form a separate legal entity, Infineon Technologies AG, on April 1, 1999. The company will have headquarters in Europe. According to the firm, the move is a prerequisite for listing Semiconductors on stock exchanges late this year or early next year. Until then, the new company will be a wholly owned subsidiary of Siemens AG. "This move is a major milestone en route to a public listing at a time when the generally expected upswing in demand for semiconductors takes place," stated Siemens Semiconductors' President and CEO Ulrich Schumacher. "We are creating a new company with a new identity and a dynamic spirit that will take us into a prosperous future."Schumacher will be Infineon's president and CEO, with Volker Jung serving as chairman of Infineon's supervisory board. On April 1, legally independent Semiconductor subsidiaries within Siemens AG will be transferred to Infineon Technologies AG, where they will retain their independent legal status. With sales of $3.8 billion in fiscal 1998 and over 25,000 employees, Infineon Technologies is the largest high-tech spin-off in European industry, according to the company. The Semiconductors division's growth from the 19th largest semiconductor manufacturer in 1993 to 10th largest last year was cited as another reason for spinning off the business.