Cypress acquisition proves not to be as successful as planned

Munich With the €9 billion takeover of US competitor Cypress almost two years ago, Infineon boss Reinhard Ploss sought a liberating blow: Germany’s leading chip group was to become larger and, above all, more profitable.

However, as the annual report shows, the takeover is not proving to be quite as successful as planned. The reason: The alleged strength of Cypress, working much more than Infineon with contract manufacturers and thus avoiding high investments, has been reversed for months.

The so-called foundries, as the external manufacturers are known throughout the industry, cannot keep up with the orders and are now even demanding down payments from the Munich-based company. Otherwise they would not deliver. The result: Hundreds of millions of lost sales and disappointed customers worldwide.