If Infineon is taken over by ST Micro, it would restructure the Communications Chip industry a great deal. STMicroelectronics holds about 11% of the communications chip business and with Infineon strength behind it, the combined entity share would be in the range of 15-16%. This would make it the second largest chip maker for communications after Texas Instruments and the difference between the two would be in the range of 3-4% share.
The buy out will not significantly enhance, however, the portfolio for ST Micro other than it bringing in Qimonda's RAM business. ST is into Flash memories mainly.
Infineon’s recent quarterly revenues touched $2.36 billion. Revenues excluding Qimonda unit were up by 3% but combining Qimonda business, the company saw a decline of 11%. EBIT excluding Qimonda was $17.52 million, and including Qimonda was negative $377.26 million. So obviously Qimonda is adversely affecting the results of Infineon.