Infineon to buy first Asian company
Infineon will establish a new company - Infineon-ADMtek - to focus on developing broadband customer premise equipment (CPE) ICs. Infineon wants to add the home gateway market to existing expertise in the central office (CO) broadband access market. This is Infineon's first acquisition of a controlling stake in an Asian semiconductor company.
The German company is planning to deliver a complete IC solution package for feature-rich, multimedia home gateways that support high-speed wireline and wireless advanced services. New business is expected in key segments such as asymmetric digital subscriber line (ADSL) and voice over internet protocol (VoIP).
As part of the transaction, Infineon has also signed a supply agreement to provide products to Accton Technology and its affiliate companies for broadband CPE solutions. Accton Technology and affiliates are presently the largest shareholders in ADMtek.
The acquisition will be structured as a statutory merger under Taiwan law. Completion is expected in April 2004, subject to approval by ADMtek shareholders and government authorities.
