Infineon Technologies AG Under Construction with $1 Billion Wafer Fab Plant Expansion After 3-Year Delay

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In 2000, Infineon Technologies AG (NYSE: IFX) (San Jose, California) announced plans for a $1 billion expansion of its Sandston, Virginia semiconductor manufacturing plant. In 2001, after constructing the building shell to house the expansion, Infineon Technologies AG was forced to place the project on indefinite hold due to the market for semiconductors going south.

Citing 1Q04 profits in excess of $46.4 million and an increase of 13% in sales to $1.99 billion worldwide, Infineon Technologies AG resumed construction in Virginia, intending to begin production of 300mm wafer advanced DRAM chips by early 2005.

After completion of the initial expansion, the Sandston manufacturing location will be capable of producing 25,000 wafer starts per month in the 300mm technology, more then doubling the plants current 300mm capacity. In addition, the expansion is expected to bring another 800 jobs to the region.

The Infineon Technologies AG Sandston plant, referred to as the Richmond plant, was originally constructed in 1996 as White Oak Semiconductor and began manufacturing operations in August 1998. The plant produces DRAM chips used in personal computers, servers and other advanced electronics devices.

Infineon Technologies AG is a leading innovator in the international semiconductor industry. With international headquarters located in Munich, Germany, Infineon Technologies AG employs more then 33,600 people worldwide including approximately 6,500 R&D personal. Infineon Technologies AG was the fastest growing semiconductor company in the world in 2003 and currently operates 25 R&D centers and 14 manufacturing plants worldwide. For the first 6 months of 2004, Infineon Technologies AG showed a net profit in excess of $86 million, compared to a loss of $437 million from the same period a year ago.

Plant - 1028387
PEC - 27000608