Munich, Germany, Stockholm, Sweden - June 12, 2002 - Ericsson and Infineon Technologies AG (FSE/NYSE: IFX) today announced that they have entered a long-term strategic partnership. Infineon will acquire the core business of Ericsson Microelectronics (MIC), Ericsson's internal semiconductor supplier, for approximately Euro 400 million. This transaction will be executed in a share based deal. Approval by the responsible anti-trust authorities is pending, and closing is expected during summer 2002. This transaction makes Infineon a strategic supplier of important components for Ericsson in the areas of wireless infrastructure and mobile phones. Ericsson and Infineon will expand their cooperation for present and future wireless solutions, for instance in the areas of 2.5 and 3G.
Infineon's wireless activities have been focusing on the high volume business of semiconductors for mobile phones. The acquisition allows Infineon to expand its business in Bluetooth solutions and radio frequency (RF) components for mobile phones as well as mobile infrastructure. MIC is today one of the world&'s largest suppliers of Bluetooth components and Infineon will further strengthen its leading market position through the acquisition of MIC. In the infrastructure segment MIC has become one of the world&'s largest manufacturer for high end power amplifiers and is one of the major suppliers and design partners to Ericsson, market leader in base stations. Infineon will combine these strong positions with its leading design and manufacturing capabilities to offer highly optimized components that are cost competitive and significantly reduce time-to-market.
"Ericsson is the leading infrastructure technology provider and we have found Infineon to be the ideal supplier and partner for our state-of-the-art solutions," says Kurt HellstrŅm, CEO and President of Ericsson. "We view this as a significant step in further focusing on our core business."
"This strategic partnership will significantly strengthen our communications business", commented Dr. Ulrich Schumacher, President and CEO of Infineon Technologies. "In addition to building on our wireless design expertise, Infineon will team up with Ericsson as a leader in the wireless world and become a strategic supplier", Schumacher continued.
Ericsson Microelectronics, headquartered in Stockholm, Sweden, is a supplier of world-class radiofrequency microelectronic components for wireless applications, high end power amplifiers and broadband communications.
About Infineon
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2001 (ending September), the company achieved sales of Euro 5.67 billion with about 33,800 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com/.