News and New Products

Reports Pin Qimonda Float for Mid-August

By David Manners -- Electronics Weekly, 7/18/2006

According to unconfirmed reports, the IPO for Qimonda, the memory manufacturing arm of Infineon Technologies, will take place in the middle of August. Infineon is not commenting on the reports.

Three months ago, in a good period for the volatile DRAM market,  Infineon's CEO Wolfgang Ziebart said that he thought the time was ripe for an IPO for Qimonda. However, DRAM prices are still relatively firm and demand is holding up.

Infineon’s plan is to launch Qimonda on the New York Stock Exchange where the valuation is thought to be likely to range anywhere from three to four billion Euros.

Last week, 34 states led by California announced a civil action against Infineon along with other DRAM manufacturers, for damages for price fixing on DRAM.

If proved, the case could involve Infineon in hefty payments on top of the $160 million fine it has already paid to the U.S. Department of Justice for a criminal DRAM price-fixing conviction.

Initially, Infineon said it would keep a majority stake in Qimonda after the IPO but would reduce that to a minority holding quite soon.

Electronics Weekly is the London-based sister publication of Electronic News.