Amid the departure of its top executive, rumors said that Germany's Infineon is looking to sell a 40-to-50 percent stake in the company to private equity firm Kohlberg Kravis Roberts and Co. (KKR), according to reports.

KKR, in turn, would merge Infineon and NXP Semiconductors, according to Reuters, which cited Die Welt as its source. KKR, Silver Lake Partners and AlpInvest Partners NV are the investors in NXP, it was noted.

For weeks, rumors have been running rampant about the fate of Infineon, including a tie up with KKR or another private equity firm and a possible merger with NXP.

The rumors are heating up again amid a major announcement at Infineon. On Monday (May 26), Wolfgang Ziebart resigned as CEO and president of Infineon, effective June 1. Peter Bauer has assumed the position of spokesman of the management board.

The resignation, which had been speculated on the days prior to the announcement, was due to "different opinions" on the strategic orientation of the company.

According to Reuters, Ziebart opposed deals with KKR or NXP, leading to his departure.