The German chip maker’s supervisory board is set to sanction the splitting off of the DRAM business at a meeting on Thursday (Nov. 17) according to a Financial Times report. The splitting of of the DRAM unit would be a prelude to an initial public offering of the unit by summer 2006, the report said. This takes a different line to a Reuters report that appeared Monday (Nov. 14), which quoted U.S. investment banking firm Needham & Co. saying Micron Technology Inc. was set to buy Infineon’s U.S. assets.

A majority of Infineon’s executive board now favoured floating a part of the DRAM business on the stock exchange, the report said, but added that Wolfgang Ziebart, Infineon’s chief executive, had not closed off other options such as selling the business outright.

One possibility is that Infineon (Munich, Germany) would sell off its share in the Inotera Memories Inc. joint venture to Nanya, sell of its U.S. operations to Micron and try to gain value for its European DRAM business, in the absence of any obvious buyer, through an IPO.

Workers’ representatives on the Infineon supervisory board are likely to could seek to delay a decision about the DRAM business.

By: DocMemory
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