NEW YORK -- Ulrich Schumacher, chief executive of Infineon Technologies AG, has hinted there are two potential candidates for a big acquisition by Infineon but declined to name the companies, according to a Dow Jones report Tuesday (September 30, 2003).
Infineon's acquisitive stance emerged as Schumacher said Infineon could use part of its $2.87 billion cash holdings to make acquisitions in the automotive and memory markets over the next few years, the report said.
Schumacher is quoted as saying that over the next two or three years Infineon wants to be a consolidator and would likely aim at smaller companies that can be integrated within Infineon quickly. However Schumacher did not rule out a deal with a larger company, the report stated which it the point where it adds that Schumacher said there are two companies that would fall into that category, but declined to name which ones.
Troubled South Korean DRAM maker Hynix Semiconductor Inc. is one company that could disappear by way of a merger and this would help build market share and market penetration for the acquiring company.
Meanwhile Infineon would likely not make an acquisition in the communications industry until its profitability in that unit increases, the report said.