Competitive Strategies Case Study

Infineon, The German Chipmaker's Troubles: The Strategy Dilemma

OR

Abstract:
Uncertainty loomed over the German chipmaker Infineon, as the market for DRAM (Dynamic Random Access Memory) chips were on a long-term decline. Squeezed by tough competition from Asian competitors and declining prices of memory chips, Infineon decided to withdraw from the memory chip business, which contributed 40% of its revenues.

Pedagogical Objectives:

• To discuss the concern of Infineon's stakeholders and the strategic dilemma facing the company, as withdrawal from the memory product business would reduce Infineon to a much smaller company manufacturing logic chips.

Keywords : Infineon Technologies; Chipmaker; DRAM (Dynamic Random Access Memory) chips; Corporate Strategies Case Study; Value chain; Spin-off; Market saturation; Pricing pressure; Memory chips; Logic chips; Research and development

Contents : 
Infineon – The German Chipmaker’s Troubles
The Strategy Dilemma
Condensed Statement of Operations of Infineon Technologies
DRAM Price Development per 256-Mbd-equivalent in US
Net Sales by Segments of Infineon Technologies
Specialization of Semiconductor Companies along the Value-added Chain