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Infineon Technologies this week celebrated its 25th annual general meeting since its spin out as Siemens Semiconductor.
The management board of Infineon at the 25th company AGM
The last 25 years at Infineon have seen a turbulent history, and only just now is the dust settling from its spinout of its DRAM memory business as Quimonda and its sale of the Newport Wafer fab in Wales.
“This year celebrates 25 years as an independent company,” said current CEO Jochen Hanebeck (left, centre) at the AGM this week. “Infineon is a story of transformation. We have proven more than once we recognise the signs of the times and don’t rest of past successes and this is exactly what’s important now,
“We are living in a time of upheaval. AI is changing everything and the climate crisis is making the restructuring of our energy systems inevitable.”
Ulrich Schumacher
The company was founded on April 1st 1999 as a spin-off from Siemens AG under Dr. Ulrich Schumacher from 1999 to 2004. Before joining Infineon, Dr. Schumacher held various leadership roles at Siemens, including head of the semiconductor division.
Infineon has since evolved into a key player in the semiconductor industry, specializing in automotive, industrial, and IoT applications. The journey over the last quarter-century reflects the dynamic nature of the tech industry, marked by innovation, strategic acquisitions, and adaptation to global market demands.
The newly independent company became one of the top ten semiconductor manufacturers globally. Infineon’s early focus was on memory products, particularly DRAM where it competed with Korean giants Samsung and SK Hynix, while NEC and Hitachi were merging their memory businesses into Elpida.
However, the volatile memory market and intense competition led to financial challenges. Schumacher led Infineon through its IPO in 2000, a year after its launch, but at the peak of the Internet bubble and sky-high tech valuations.
His tenure was notable but not long. By 2004 he was out, joining venture capital firm Francisco Partners with stints as CEO of Grace Semiconductor in China and LED lighting firm Zumtobel.
Wolfgang Ziebart
He was replaced by Wolfgang Ziebart from 2004 to 2008, recruited from BMW where he served as a board member responsible for development and purchasing. He brought extensive experience in automotive and industrial markets and focused on restructuring Infineon, including the sale of the memory division as Qimonda in 2006 to refocus on the core businesses of automotive and industrial semiconductors. He emphasized profitability and strategic realignment during a challenging period for the company.
In 2006, Infineon spun out its memory division to Qimonda, a move that allowed it to refocus on its core competencies in higher margin businesses of power semiconductors, automotive, and industrial applications.
This strategic pivot paid off, as Infineon became a leading supplier of semiconductors for the automotive industry, providing solutions for electric vehicles, advanced driver-assistance systems (ADAS), and vehicle electrification.
Ziebart resigned in 2008 after different opinions on the future strategic orientation of the company and was replaced by Peter Bauer, who had led Siemens Microelectronics in Cupertino, America in 1998.
“We would like to thank Mr. Ziebart for his efforts and merits,” said Max Dietrich Kley, Chairman of the Infineon Supervisory Board at the time. “He took over the position as CEO four years ago in an extremely difficult situation.” This led to a cost cutting programme called IFX 10-Plus to “accelerate the execution of the strategic re-alignment.”
Peter Bauer
“If we continue to further focus our resources and execute our measures thoroughly and fast, we have good chances for a prosperous future,” said Bauer (right). “During the last years, the future direction of the company has been largely set. But we have to execute and – if necessary extend – our measures step by step and at high speed.”
In 2010 Infineon sold its mobile phone business, the Wireless Solutions division, to Intel. The $1.4bn deal saw 3,500 employees move to the new company Intel Mobile Communications GmbH (IMC) in Neubiberg. Prof. Dr. Hermann Eul became the President of IMC, leaving his position as Member of the Management Board of Infineon and his responsibilities for Sales and Marketing will be taken over by Bauer with Dr. Reinhard Ploss taking over Technology and R&D in addition to being Head of Operations and Labour Director.
“I’m very glad to be able to hand over the mobile phone business to Intel in such great shape, and am delighted to know it will be led by Prof. Dr. Eul. Together with Intel there are bright prospects for further growth and further strengthening its market position,” said Bauer.
“This marks the completion of Infineon’s reorientation over the last years toward a higher stability. Infineon currently holds market leading positions in each of its three remaining business segments – automotive, industrial and security electronics – and enjoys excellent prospects in these markets in terms of growth and profitability.”
Like his predecessors, Bauer lasted four years from the global financial crisis in 2008 until he stepped down in 2012 for health reasons.
“This is a very difficult decision for me,” said Bauer at the time. “After so many eventful years together, Infineon and its employees are very dear to my heart. However, due to the uncertainties posed by my illness I can no longer dedicate the undivided attention required by the office of the CEO to lead Infineon into the future. I feel that I have a duty to my health, my family and the company to step down from my current position.”
From 2013 to mid-December 2020, he was Chairman of the Supervisory Board of OSRAM and now works as a business coach.
Reinhard Ploss
So the supervisory board turned to chief technology officer Reinhard Ploss.
“He brings with him both extensive technical expertise and a broad business background. In our dynamic and highly competitive business, the balance between change and stability is a critical success factor. Dr. Ploss masters this balance. His appointment preserves continuity,” said Wolfgang Mayrhuber, chairman of the board.
Ploss oversaw the $3bn acquisition of International Rectifier in 2015 to strengthen its position in power semiconductors.
“The acquisition of International Rectifier is an important step for Infineon to foster our position as a global market leader in power semiconductors,” said Ploss. “We are sure that International Rectifier and its employees will make a great contribution to a joint successful future. Together both companies make a powerful combination.”
Co-founder Robert LeFort, president of International Rectifier took over as president of Infineon North America and brought with him a fab in Newport, Wales. IR under Alex Lidow, son of the founder, had bought European Semiconductor Manufacturing (ESM), formerly the Inmos fab, out of administration for $81m in 2002.
This was followed by an ill-fated bid to buy the Wolfspeed silicon carbide business from Cree for $850m, which at the time also had LED and RF businesses.
“Joining forces with Wolfspeed represents a unique growth opportunity,” said Ploss (left) at the time. “Wolfspeed’s and Infineon’s businesses and expertise are highly complementary, bringing together industry leading experts for compound semiconductors. This will enable us to create additional value for our customers with the broadest and deepest portfolio of innovative technologies and products in compound semiconductors available in the market. With Wolfspeed we will become number one in SiC-based power semiconductors. We also want to become number one in RF power. This will accelerate the market introduction of these innovative technologies, addressing the needs of modern society – such as energy efficiency, connectivity and mobility.”
Chuck Swoboda, Cree Chairman and CEO, (right) added “After much consideration and due diligence over the past year, we concluded that selling Wolfspeed to Infineon was the best decision for our shareholders, employees and customers. We believe that Wolfspeed will now be able to more aggressively commercialize its unique silicon carbide and gallium nitride technology as part of Infineon.”
The deal fell through a year later after the US Committee on Foreign Investment in the United States (CFIUS) raised objections against the acquisition and the two companies have not been able to identify alternatives which would address the security concerns.
However the companies continued to work together, with Infineon selling its RF business to Cree in 2018. Cree was later to shift its focus to SiC and rename as Wolfspeed in 2021, selling off that RF business to Macom in 2023.
In 2017 Infineon sold the Newport fab to a consortium called Neptune 6, along with a two-year supply agreement ensuring a mutually smooth transition phase. Upon closing, the buyer operated the site as Newport Wafer Fab Ltd.
“I am convinced that with Neptune 6 we have found the right partner who will secure production and jobs in Newport. Knowing we would have to part with the Newport site, it was my personal concern to make sure it will be in good hands,” said Jochen Hanebeck, at the time a member of the Management Board Operations. “The transfer of the fab is a major step in consolidating our frontend manufacturing footprint after the acquisition of International Rectifier.”
“The Newport site, which comes with a skilled workforce of highly reliable and very experienced people, is extremely well placed to contribute to the rapidly emerging International Compound Semiconductor Cluster of South Wales. The fab is very well equipped to act as a globally competitive chip foundry, and Newport Wafer Fab Ltd. will be highly complementary to the existing semiconductor expertise in the region,” said Steve Berry, the legal director of Neptune 6.
Ploss also oversaw the acquisition of Cypress Semiconductor in 2020 for $10 billion was a landmark event, propelling Infineon back into the top ten semiconductor suppliers and significantly enhancing its capabilities in connectivity, microcontrollers, and software. This positioned Infineon as a comprehensive provider of semiconductors for the IoT, automotive, and industrial markets.
“The acquisition of Cypress is a landmark step in Infineon’s strategic development,” said Ploss. “Together, we offer our customers the industry’s most comprehensive portfolio for linking the real with the digital world and shaping digitalization, one of the most important global trends. We serve as a trusted partner for customers and distributors and we are evolving from a leader in components to a leader in system solutions for the automotive, industrial and IoT markets. Furthermore, customers can benefit from our increased global reach and enhanced design-in support tailored to their needs. We welcome our new colleagues from Cypress to Infineon”.
However there were reports of a clash of cultures between Germany and California, with the CEO of Cypress Hassane El-Khoury leaving to run On Semiconductor, the former Fairchild Semiconductor and now onsemi, as CEO.
Jochen Hanebeck
Ploss retired in 2022 after a successful decade that ended with the Covid-19 pandemic and the resulting chip shortage. He was replaced by Hanebeck who joined Siemens Semiconductor in 1994.
The company is still undergoing changes, recently merging its sensor and RF businessesbut it has finally settled its court cases resulting from the Qimonda spinout for €800m last year. The fallout from Newport Wafer fab also continued, with the purchase by Nexperia in 2021 before being forced by the UK government to sell to Vishay for $117m.
With the funding agreed this week for the $5bn Smart Power fab expansion at Dresden and the 200mm silicon carbide fab in Kulim, Malaysia coming online to take on Wolfspeed in the US and production of 300mm GaN power wafers, Infineon is pushing forward towards a $30bn turnover by 2030 in ever changing times.
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