Infineon to invest heavily in China

18 Sep 2003

German semi-conductor manufacturer Infineon Technologies [NYSE: IFX] has said that it plans to invest EUR1 billion in China by 2007 in an effort to double its share of the country’s computer chip market to 10%. The Munich-based company will focus on supplying memory chips and secure mobile solutions to Chinese service providers. It believes the Chinese semiconductor market will triple in value to USD80 billion over the next five years and is looking to establish a number of local joint ventures to exploit the burgeoning demand. Earlier this week it signed an agreement with Shenzhen-based Huawei Technologies under which the two will jointly develop handsets based on the W-CDMA third-generation standard, as well as related applications and services.