Infineon Technologies, Europe's second biggest chip maker, showed the impact of the slump in mobile comms, and falling demand for DRAM chips from the PC market as it reported second quarter results on Tuesday (24 April).
Growth in other business areas, including the company's Security and Chip Card, Wireline Communications, and Automotive and Industrial groups could not offset the drop in demand.
Revenues, standing at €1.65bn, were flat sequentially on Q1 while earnings before interest and tax (EBIT) dropped by €243m to €10m. Net income was down by €257m to €23m.
The upside of the results was that Infineon avoided reporting the second quarter loss expected by some analysts.
Ulrich Schumacher, president and CEO said: "Despite a difficult market environment Infineon maintained strong margins in its non-DRAM businesses due to continued demand, further productivity gains and new high margin products in these segments.
"Our strategy to build on these businesses is showing positive results as they helped counterbalance the current weakness in the memory market."
Infineon has also just unveiled plans to go ahead with the full roll out of 300mm processes at its Dresden site, originally developed in conjunction with IBM.