Case Categories

Share |

Competitive Strategies Case Study

Case Title:

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

Publication Year : 2005

Authors: Mercy Mathew, Souvik Dhar

Industry: Engineering, Electrical and Electronics

Region:Germany USA

Case Code: COM0105

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study

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

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • Shahnaz HussainShahnaz Hussain

    Pioneer and Leader of herbal care in India. She is also a pioneer of Vocational Training in Cosmetology in India.
    Speaks on Women Executives
  • Prof. Reuben AbhrahamProf. Reuben Abhraham

    Professor & Director of EMSI, Indian School of Business
    Speaks on Bottom of the Pyramid
  • Tamara J EricksonTamara J Erickson

    Tamara J Erickson, President nGenera Innovation Network
    Speaks on Managing Troubled Times
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA,, Fax: 08147-236653,E-mail:

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap