Infineon Technologies’ sale of its wireline communications division to the private equity investor Golden Gate Capital wil create a new company called Lantiq.
The new fabless semiconductor company will address the markets for DSL and VoIP chipsets from the former Infineon facilities.
According to Christian Wolff, who is designated to be the CEO of Lantiq, the big opportunity for the new semiconductor supplier is in the market for IPTV, home networking and next-generation IP-based networks.
On July 7, 2009 Infineon Technologies announced that it had agreed to sell its Wireline Communications Division (WLC) to the private equity investor Golden Gate Capital.
“We are especially impressed with the leadership and integrity of the senior management team as well as the capabilities of the entire employee base. The people, technologies, and customer relationships make Lantiq an attractive platform for us,” said John Knoll, managing director at Golden Gate Capital.
The wireless business sale continues a partial break-up of one of Europe’s largest semiconductor manufacturers.
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 euros 800m.
Earlier this year it raised euros180m from a bond issue.
See: Infineon follows Freescale, NXP in debt buy-back