After spinning off its memory unit, Germany’s Infineon Technologies AG said that it plans to expand its silicon foundry services.

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The move is somewhat expected. Late last year,, Infineon (Munich) entered the foundry market with the aid of its French affiliate, Altis Semiconductor SA, according to first customer — Toumaz Technology Ltd. Infineon has initially focused on specialized manufacturing processes: RF-CMOS, bipolar and silicon-germanium, and high-frequency applications.


Infineon achieved positive EBIT in the second quarter after four quarters of losses. EBIT increased significantly to Euro 28 million from an EBIT loss of Euro 122 million in the prior quarter, primarily due to a return to positive EBIT in the Memory Products segment and improved EBIT in the Automotive, Industrial and Multimarket segment.
· Second quarter revenues increased strongly to Euro 1.99 billion, up 19 percent sequentially, reflecting significantly higher sales in the Memory Products and the Automotive, Industrial and Multimarket segments.
· Net loss in the second quarter was Euro 26 million compared to a net loss of Euro 183 million in the prior quarter.
· Total revenues for the first half of the 2006 financial year were Euro 3.67 billion, up 7 percent from Euro 3.42 billion in the same period last year. EBIT in the first half of the 2006 financial year was negative Euro 94 million, a decrease from positive Euro 94 million in the same period last year.