The break-up of one of Europe's largest semiconductor manufacturers is continuing with the announcement that Infineon Technologies has agreed the sale of its wireline communications chip business.
Earlier this year, the chipmaker sold its software development centre in Linz, Austria to Fujitsu Microelectronics Europe.
Infineon, which has seen Qimonda, the loss-making DRAM business it has majority shareholding in, file for bankrupcy protection, is facing a refinancing requirement this year of around €800m.
Earlier this year it raised €180m from a bond issue.
See: Infineon follows Freescale, NXP in debt buy-back
In selling the wireline business, Infineon will get €250m from an affiliate of US-based investor Golden Gate Capital.
"The divestiture of the WLC segment is an important step in our overall refinancing process," said Peter Bauer, CEO of Infineon Technologies.
The sale leaves the German semiconductor company with four business segments - automotive, industrial, smartcard ICs and wireless solutions.
Christian Wolff, will be the CEO of the new wireline comms business company and he believes that WLC is well positioned to stand on its own feet.
"With the financial backing of Golden Gate Capital, we are well positioned to continue our investment in innovative broadband products for our customers, " said Wolff.
The main markets for the WLC business are broadband access systems, VoIP telephony and DSL.