LONDON Infineon has revealed the name of its memory subsidiary and reiterated that after its formation an IPO remains the favored way to separate it from its parent.
The company is called Qimonda and Wolfgang Ziebart, Infineon's chief executive officer speaking on a press conference webcast from Munich, said its separation from Infineon would be completed on May 1, two months ahead of the company's previous schedule.
The company will debut as the world's fourth largest DRAM manufacturer. Kin Wah Loh, presently head of Infineon’s Memory Products Business Group, was introduced as the chief executive of Qimonda and he went on to explain that Qimonda literally implies the free flow of energy in the world, but that he wanted the company to be “fast, creative and passionate.”
Qimonda AG will be headquartered in Munich and have about 12,000 employees with 4,700 employed in Germany. The company will also have 1,700 employees working five in R&D centers worldwide and more than 900 engineers in product development. The company’s R&D facilities include Munich and Dresden in Germany, Raleigh and Burlington in the United States and Xi'an in China.
In terms of its financial position Qimonda has a nominal 2005 financial balance sheet which shows the company made a profit of 122 million euro (about $148 million) on revenues of 2.83 billion euros (about $3.42 billion). “For the last three years memory group has been profitable,” said Loh.
Ziebart said Qimonda has a number of factors in its favor in the market place and therefore also in its favor in terms of an IPO. Firstly Ziebart Qimonda’s DRAM technology, which he claimed consumes 30 percent less power than competitors’ technology. Secondly, Qimonda will inherit from Infineon the largest 300-mm production capacity, allowing the company to manufacture DRAMs efficiently. A third factor was that Infineon, having fallen behind competitors in the “geometry race” has now caught up and has momentum to continue to gain market share.
“The logic company is also well-placed. We are number one in power electronics, in high-frequency transceivers, in chip-cards, and in automotive in Europe, and number two in automotive in the world,” said Ziebart.
Ziebart said that while an initial public offering of shares remained the preferred option for the separation of Qimonda from Infineon he said no decision has yet been taken by the Infineon supervisory board on whether to perform such an IPO.
It also remains unclear as to what proportion of Qimonda shareholding Infineon would put on the market during an IPO although it could be less than 50 percent initially, Ziebart conceded. “We do not intend to remain the majority shareholder for a long period of time,” said Ziebart, during a question and answer session during the press conference.