Managing in Troubled Times Case Study

Infineon: Signs of a Recovery

OR

Abstract:
Infineon Technologies AG was one of the top 10 semiconductor companies in the world. In the late 1990s, the global semiconductor industry went into a recession. Further, the downturn in the global PC business in early 2000 led to a drastic fall in the Dynamic Random Access Memory (DRAM) prices. Infineon, one of the leading DRAM manufacturers, was compelled to sell its chips at prices below its manufacturing cost. This resulted in huge losses for the company. Ulrich Schumacher, the CEO, took certain measures to regain the profitability of the company.

Pedagogical Objectives:

• To discuss Infineon's strategy of surviving the economic recession in an ailing semiconductor industry
• To discuss the problems faced by the DRAM industry and Schumacher's role in the revival of Infineon.

Keywords : Semiconductor industry; Infineon turnaround; IMPACT programme; ACT programme; Ulrich Schumacher; Agenda 5-to-1 programme; Siemens semiconductor; Joint ventures and mergers; Restructuring / Turnaround Strategies Case Study; Dynamic random access memory industry; Entrepreneurship; Wafer technology; Micron; Restructuring; Personal computer industry

Contents:

• Introduction
• Background
• Schumacher's role
• Future outlook