Expected problems in the automotive supply chain failed to materialize for Infineon Technologies in the second quarter and helped the German chip maker turn in higher than expected sales and profits in its third fiscal quarter ended June 30.

Infineon Technologies is on track for accelerated growth and is well-equipped to make acquisitions, Chief Executive Peter Bauer said at an investor event on June 7.

Near Field Communication (NFC) connectivity technology transforms smart phones and other mobile devices into wallets, tickets and keys. Infineon Technologies backs this development and is launching its latest security microcontroller for NFC applications.

As part of the investment volume planned for the 2011 fiscal year, Infineon Technologies is investing about Euro 198 million in production capacity expansion and in R&D in Austria. Infineon intends to create 400 jobs in Austria in the course of this fiscal year.

Infineon's decision to exit the wireless business to focus on chips for cars and energy-efficient machines has paid off, as strong second-quarter results let the German chipmaker raise its full-year outlook.

Infineon will go into specifics concerning the past quarter, the outlook for the current quarter and the expectations for the fiscal year 2011 when presenting the figures for the second quarter of the fiscal year 2011 on May 3, 2011.

A gauge of manufacturing in the euro region rose to 59 last month from 57.3 in January, London-based Markit Economics said in an e-mailed report. That's the highest since June 2000. A reading above 50 indicates expansion.

On January 19, 2011, the 3.5 billionth CoolMOS high-voltage MOSFET came off the production line at Infineon's manufacturing facility in Villach, Austria.

Rising demand for vehicles in China has boosted profits at Infineon. Back orders are expected to last through summer.

Infineon Technologies has announced the Volkswagen AG Business Unit Braunschweig will use Infineon's Hall sensors in electric power steering systems for vehicles.

The deal is the largest takeover yet by Qualcomm. It also comes on the heels of Intel's US$1.4 billion purchase in August of Infineon's wireless chip business, which competes with Atheros. Many industry analysts believe Qualcomm's takeover of Atheros is the first of several potential deals in the semiconductor industry this year.

The SLE 78 chip in the new German ID card has been certified by the Germany Federal Office for Information Security (BSI). Infineon developed the chips for the ID card in Neubiberg near Munich, Germany.

Infineon Technologies was sued by the insolvency administrator of Qimonda who filed an action in a Munich court seeking a liability judgment for an unspecified amount.

Tesla has incorporated Infineon's power semiconductors in its battery-powered Roadster, and is also testing them for its Model S, which is scheduled to begin production in 2012, according to Infineon spokesperson Christian Hoenicke.

German chipmaker Infineon has reported strong fourth-quarter results, and said it plans to give back cash to shareholders for the first time in a decade.

Chipmaker Qualcomm wants to expand in Europe via both organic and acquisition-fueled growth, its top man in the region told a German daily in an interview published on Wednesday.

Infineon Technologies has announced that result and revenues for the quarter ending September 30, 2010 will be better than expected.

"Never stop thinking" - the Infineon claim that employees once revised to "Never stop shrinking." That was five years ago, when Infineon spun off memory-chip unit Qimonda.

IBM and Infineon Technologies have closed a transaction to sell 100% of the share capital of Altis Semiconductor to a new corporation. They have also entered into supply agreements with Altis, and will continue to use Altis' production facility in France.

...and if Apple misses out, it will likely never get another chance to acquire the wireless technology necessary to do so because the entire mobile component value-chain is consolidating and the remaining players are giants.

Infineon Technologies is in discussions with interested parties about a transaction concerning the segment Wireless Solutions (WLS), according to the company.

In the three months ended June 30, Infineon swung to a net profit of 126 million euros (US$164 million) from a loss of 24 million euros in the same period a year ago. The firm has raised its full-year outlook, expecting revenues to grow at least 40% in fiscal 2010 compared to the previous year.

The talk of a Samsung-Infineon deal surfaced in German publication Manager Magazine but neither firm would comment. Two years ago, Samsung greatly extended its purchasing of cellphone chips from Infineon, largely at the expense of Qualcomm.

Infineon has denied it is in discussions with diversified Russian holding company AFK Sistema, according to a report, in a rerun of denials from September 2009 and earlier.

"We are targeting segments within the semiconductor market that are growing faster," said Infineon CEO Peter Bauer. "The wireless market is bigger than before the crisis, driven by smartphones and emerging market phones."

Thirty-three states, including California, have reached a US$173 million settlement with six DRAM makers alleged to have fixed prices for their products between 1998 and 2002. The companies named in the lawsuit are Micron Technology and NEC Electronics America as well as Infineon Technologies, Hynix Semiconductor, Elpida Memory and Mosel Vitelic.

Infineon is well equipped financially for future acquisitions, but has no concrete plans for takeovers at the moment, a German newspaper quoted its chief financial officer as saying.

Infineon has hired JPMorgan to sound out a possible sale of its wireless business. People close to the situation said at least one possible buyer had approached the German chipmaker.

But he declined to comment directly on market rumors that Intel could buy Infineon's wireless unit, which produces chips used in mobile network technology. "We have nothing we have to sell urgently..."

Elpida plans to withdraw its patent lawsuits filed with the Virginia US district court while Infineon and its US subsidiary have agreed to abandon a patent infringement complaint against Elpida and other respondents filed last February with the US International Trade Commission in Washington D.C.

The Commission has adopted a decision settling a cartel investigation and imposing a fine totalling about 331 million euros (US$409 million) on Samsung, Hynix, Infineon, NEC, Hitachi, Mitsubishi, Toshiba, Elpida and Nanya.

European Union regulators are expected to fine nine makers of memory chips, including Samsung, Infineon and Hynix, this week on charges of illegally fixing prices. Others set to be fined are Elpida, NEC Electronics, Hitachi, Toshiba, Mitsubishi and Nanya.

Infineon is in talks with Intel about a sale of its wireless chip business, according to German business daily Financial Times Deutschland.

Infineon Technologies has raised its 2010 outlook for a second time this year on higher demand from automotive and industrial customers for chip cards and security applications. The chipmaker's fiscal second-quarter net income was 79 million euros (US$104.2 million) compared with net lossES of 239 million euros a year earlier.