Infineon Quits DRAM Business

by Sze | Filed under Storage

Qimonda

Infineon announces that it will quit the DRAM industry and the DRAM business of Infineon will be taken over by a new company called Qimonda. Infineon itself will concentrate on other technologies that it says is not as volatile and unpredictable as DRAM.

Through out the years, the price of RAMs often swing in both directions widely and according to many in the business, ramps in either direction are difficult to predict. The bigger a company is in the DRAM business, the greater the difficulties.

Infineon’s jump out of the DRAM business was not without foreshadowing. Besides the accusations of its price fixing, Infineon was also in a drawn out court battle with DRAM IP company Rambus. After roughly $5 million of legal expenses, Infineon agreed to settle with Rambus. Later, Infineon took Rambus back into court with claims that Rambus had destroyed important documents. The courts tossed InfineonÃƒÂ¢Ã¢â€šÂ¬™s claims and dismissed the case as unsubstantial. Just last week, Siemens, the largest stakeholder in Infineon, sold all of its shares for a whopping $1.4 billion. Insider trading issues not withstanding, Infineon is now splitting itself.