Infineon buys American chip manufacturer for 2.2 billion euros

The German chip manufacturer Infineon has acquired its American sector competitor International Rectifier for an amount of 3 billion dollars, converted 2.2 billion euros. The acquisition will likely lead to job losses at the American chip manufacturer.

Rumors have been circulating this week about a possible acquisition of International Rectifier by Infineon. Thursday it became clear that the rumors were true. The German chip giant, created in 1999 as a spin-off from parent company Siemens, has announced that it is taking over its American counterpart. For this, the company is putting 3 billion dollars, or 2.2 billion euros, on the table.

Infineon, which produces chips for the automotive industry, among other things, will gain access to the energy-efficient chips of its American counterpart with the acquisition. The acquisition should deliver cost savings for both companies, while Infineon hopes it can make better use of its 300mm wafer production lines in Europe.

Due to the acquisition, there is a considerable chance that jobs will be lost at International Rectifier. Administrative costs would be higher at the American company than at Infineon. The acquisition is expected to be fully completed next year.