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Which Way Forward for Infineon?

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hash.era
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Re: strong company
hash.era   1/30/2013 10:40:25 AM
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Thats interesting stoachastic. I never thought about that part but yes you are right on it.

Bolaji Ojo
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Re: Watch out
Bolaji Ojo   10/1/2012 10:59:59 PM
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Infineon executives will cut costs. They'll do it even if they believe it's not in the long term interest of the company. Managing a public company is a lot more complex than for a private company. They have to answer to investors who want short term results and that's often delivered with cuts!

Bolaji Ojo
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Re: strong company
Bolaji Ojo   10/1/2012 10:51:55 PM
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Stochastic, The semiconductor market is not one of the economic segments where large acquisitions are likely anymore. Few companies have the means to take on such a large acquisition (Infineon's market value as of Monday Oct 1 was $7.2 billion which means a potential buyer would have to pay a sizeable premium of 15 to 30 percent or more) and the ones who do may not have a good reason for doing it. So, an acquisition is unlikely, unless leverage buyout specialists get involved.

stochastic excursion
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Re: strong company
stochastic excursion   10/1/2012 8:06:53 PM
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Like all businesses in an economic crunch, Infineon faces challenges in bringing cost-effective products to market.  Infineon chips often have the edge, though, in performance and reliability.  This suggests it will always have a foothold in the electronics market, and maybe even as an acquisition target.

hash.era
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Re: strong company
hash.era   9/30/2012 2:23:27 AM
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Very true flyingscot I too feel they have the financial backing plus resources to survive this kind of a situation but yes truly their management should act wisely here

hash.era
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Re: Competition
hash.era   9/30/2012 2:21:24 AM
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Taimoor competition is always a plus factor for any company. It may sound bitter for them but in long term it will do loads of good since because of compitition they have to make certain decisions which they might not have even thought about plus work hard and think differently to stay in the market

TaimoorZ
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Supply Network Guru
Re: Watch out
TaimoorZ   9/30/2012 1:08:22 AM
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".. how to balance R&D expenses and good profitability margins."

@Hospice: That's one of the most critical decisions that any manufacturing company has to take. Either to cut expenses and show a healthy profit margin or to invest into R&D for better profits in future. Striking the right balance is very difficult and most companies struggle with it.

TaimoorZ
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Competition
TaimoorZ   9/30/2012 1:05:21 AM
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@Bolaji: What about the competition Infineon faces? Has that been one of the causes that has led to this situation faced by Infineon?

MClayton200
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Production Synthesizer
Re: Watch out
MClayton200   9/28/2012 11:50:34 PM
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The devil is in the details, and in Infineon's case, its operational details and timing of strategic adventures, like the DRAM business fiasco that seem to plague them.

German subsidies (like the one's given to AMD in Dresden for example) often lead to badly timed investments and subsequent fast obsolescence.....in my opinion.

Its not just INVEST vs CUT based on macroeconomics or industry cycles.  Its WHAT, WHEN AND HOW that matters.,,,in my opinion.

FLYINGSCOT
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Supply Network Guru
strong company
FLYINGSCOT   9/28/2012 8:14:32 AM
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Infineon is a strong company with real presence in the industrial and automotive markets.  With a large cash pile I would not worry too much about its future but I sure hope management get its act together soon.

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