Infineon is getting out of the DRAM business.
According to a EE Times report using Reuters information Infineon will sell its DRAM facilities to Micron and Nanya Technology. Micron would buy the US facility and Nanya the non-US ones.
In August this year it was reported that Infineon was to supply DRAM components to Microsoft for its XBox games console. Assurances must have been given to Microsoft about continuity of supply and Micron is probably the inheritor of that contract.
Infineon has already got out of its fibre optics business with Finisair and others buying the bits.
So ends a disastrous foray into memory production. Infineon made huge losses and engaged in price-fixing, possible royalty payment evasion for technology, plus rash sponsorship deals as it struggled to make money in what turned out to be a doomed business.
Infineon's tale of woe for its loss-making DRAM business is long and winding:
- Infineon was embroiled in EU and US price-fixing investigations in early March last year.
- It's CEO resigned later that month for 'personal reasons'.
- A Siemens' putsch forced more executives out.
- Investments were announced for its Richmond, USA, DRAM plant in April.
- Notwithstanding this there was speculation that it was getting out of the DRAM business in May, 2004.
- In September, 2004, Infineon pleaded guilty to price-fixing.
- In December, 2004, it was still involved in a patent dispute with Rambus.
- This suit was settled in March, 2005, with Infineon agreeing to pay Rambus royalties going forward.
- In June, 2005, it was selling off non-core businesses to concentrate on memory production.
- In July, 2005, the head of the Infineon memory chip business resigned in a furore over motor racing sponsorship deals.
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