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Business

X-Fab Won't Buy Infineon Chip Factory

German computer chip makers Infineon and X-Fab said Wednesday that X-Fab had decided not to buy Infineon's ageing computer chip plant in Munich-Perlach. "There is no long-term guarantee of running the Perlach site with economic success and preserving jobs," the two semi-conductors makers said in a joint statement. Infineon had said at the end of February that it planned to shut down the site, which employs around 800 people, by 2007. "We would have liked to continue operating the Perlach plant as a semi-conductor site and we explored the full limit of possibilities as we assessed the takeover risks in light of the objectives of X-Fab as whole," said X-Fab chairman Hans-Jürgen Straub. "However, the economic and structural deficits in Perlach were insurmountable."

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