Infineon: Q1 losses widen on falling chip prices

Infineon: Q1 losses widen on falling chip prices

Infineon Technologies reported a rise in Q1 losses due to declining prices in its core memory business.

Net losses at Infineon Technologies widened in the first quarter due to declining prices in its core memory chip business, according to the German chipmaker.

Net loss in the first quarter was Euro (e) 183 million ($US217 million as of December 31, the last day in the period being reported), compared with e100 million in the same period a year earlier, the Munich-based manufacturer said in a statement.

First-quarter net revenue was down 3 per cent sequentially, to e1.67 billion.

Revenue slipped due to a sharp drop in average selling prices of its Double Data Rate (DDR2) memory chips, Infineon said.

DRAM chips, the bread and butter of Infineon's memory unit, have become near-commodity products used in PCs, resulting in volatile prices that can dip below production costs.

In the second quarter, Infineon plans to increase bit production or the amount of memory produced, by 20 per cent. To that end, the semiconductor manufacture aimed to ramp up capacity in its various facilities, including its US plant in Richmond, Virginia, the company said.

Infineon was on track with preparations for a separate listing of its memory chip unit, Chairman and CEO, Wolfgang Ziebart, said.

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