Munich-based Infineon increased provisions by 159 million euros ($179 million) to cover the cost of a possible settlement with the administrator of its former memory chip unit Qimonda, which went into administration in 2009.

“We are open to an out-of-court settlement on reasonable terms,” Chief Financial Officer Dominik Asam told analysts on a conference call.

Qimonda’s administrator had sued Infineon for 3.35 billion euros, arguing that it had transferred operations to the business at an inflated price. Infineon set aside provisions of 305 million euros in 2012 that were mostly drained by an earlier partial settlement of 260 million euros.

Infineon made the new provisions, which bring total current provisions to over 180 million euros, to cover the costs of a settlement based on a new report by an independent expert.

Munich-based Infineon increased provisions by 159 million euros ($179 million) to cover the cost of a possible settlement with the administrator of its former memory chip unit Qimonda, which went into administration in 2009.

“We are open to an out-of-court settlement on reasonable terms,” Chief Financial Officer Dominik Asam told analysts on a conference call.

Qimonda’s administrator had sued Infineon for 3.35 billion euros, arguing that it had transferred operations to the business at an inflated price. Infineon set aside provisions of 305 million euros in 2012 that were mostly drained by an earlier partial settlement of 260 million euros.

The company will propose an increase in its dividend to 27 euro cents a share, up from 25 cents a year ago but a cent shy of market expectations.

Infineon also announced the acquisition of Dresden startup Siltectra GmbH for 124 million euros, which has developed a technology that can double the number of chips that can be made from one silicon carbide wafer.

By: DocMemory
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