Infineon put the plant up for sale in a major reorganization earlier this year, year and initiated the talks with X-Fab.

Both companies said they were prepared to make concessions to continue operations at the site and safeguard jobs. But they said that after investigating the matter in depth , they concluded that there is no long-term guarantee of running the Perlach, Munich site with economic success and preserving the jobs.

Reinhard Ploss, group vice president and general manager of the Automotive, Industrial and Multimarket Group at Infineon, said, “We regret the development and would have welcomed selling the site and preserving the jobs. The discussions were very constructive and included long and intensive negotiations. Nevertheless a takeover by X-Fab was not possible due to the specific conditions in Perlach.”

Hans-Jürgen Straub, CEO of X-FAB, said it became clear during the negotiations that there were significant risks in the acquisition and that “the economic and structural deficits in Perlach were insurmountable.”

Infineon was planning to close the 150-mm wafer fab at Perlach and move production to wafer fabs at Regensburg, Germany, and Villach, Austria.

Manufacturing at Munich Perlach, which currently employs about 800 people, is set to end by early 2007.

By: DocMemory
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