Infineon is continuing to shed business arms as it focuses on its core memory chip business.

On Thursday, the company announced the sale of its development activities in the area of wearable electronics to Interactive Wear.

Infineon had conducted research on the integration of electronic functions into textiles and developed the technology to the point that it is ready for the market. The company decided to discontinue this work as part of its restructuring and concentration on its chip business.

On Monday, Siemens said it is taking over the electrochemical bio-chip development activities of Infineon. The transfer to Siemens involves patents, a high-tech bio-chip lab and researchers.

In between these two divestments, Infineon squeezed in news about its memory chips. The German government has selected it, together with Philips, to deliver contactless secure chips for new passports containing biometric data.

The new passports, valid for 10 years, will include an embedded chip that will initially store a digital photo of the passport holder's face. Starting in March 2007, the holder's left and right index fingerprints will also be stored on the chip.

Also, Infineon and its partner Nanya announced they are now ready to begin producing DRAM chips on a 90-nanometer process technology, reducing chip size, output and cost.