EW Daily News 28/01/2004 10:17:45 - Infineon acquires firm to enter home gateway marketInfineon acquires firm to enter home gateway market David Manners
Infineon Technologies is to acquire ADMtek, a fabless Taiwanese semiconductor company, for 80m euros.
A new company, Infineon-ADMtek, will be set up in HsinChu City, which will focus on developing broadband customer premise equipment (CPE) ICs and enable Infineon to enter the home gateway market.
The aim is to combine ADMTek’s knowledge of CPE products with Infineon's expertise in the central office by offering a complete IC solution for multimedia home gateways that support high-speed wireline and wireless services.
As part of the deal, Infineon has signed a supply agreement to provide CPE products to Accton Technology Corporation, ADMtek’s largest shareholder. Accton provides a variety of Ethernet, fast Ethernet and gigabit communication products including hubs, switches and Internet access devices.
The acquisition provides Infineon with an R&D centre and proximity to Taiwanese ODM (Original Design Manufacturing) companies that account for more than 70 per cent of the world’s broadband modem and router CPE market.