Infineon has been on a downward spiral ever since its spin-off from Siemens Corporation. I failed to participate as an employee in Infineon?s initial public offering because of my belief that the company had been grossly overvalued. How?s that for insider information and making an informed decision?
On a more sinister note, Infineon made bets on the European Automotive market after its divestiture of the money losing memory division. The new memory division, Qimonda, was short lived and died from a quickly deserved death from a more able market competition. Qimonda was derisively known as, ?Quasimodo, the Hunchback of Munich? by those who still had affections for the entity. The ?Pink Palace? is what insiders call Siemens Headquarters in Munich and those familiar with its internal workings will most likely agree with this assessment ? though it might be a bit of a stretch if they are still a sitting ?Prince?.
Meanwhile Peter Bauer has stepped down for medical reasons effective September 30, 2012. We at Bright Side wish him the best of health and good luck.
His replacement, Reinhard Ploss, is an Infineon veteran that has come up through the ranks of the semiconductor manufacturing operation within the firm. Though his ascension to CEO is admirable in Germany, Mr. Ploss is now faced with a declining order book formerly filled from the now stalling economies of the developing BRIC countries. Pushbacks and cancellations are now the norm for the lead country in the Northern European manufacturing block of the European Union.
Infineon has frozen their headcount and has reassessed R&D spending for the coming year. BSN* expects that the company will take a few more ?rough bumps? before any semblance of growth returns beginning in 2014.