Infineon Technologies Losing Its Memory

Infineon Technologies(IFX Quote) is betting that the parts are more valuable than the sum with a plan to separate its memory division from the rest of the company.

But while the move gets Infineon out of a hypercompetitive, high-cost market, the strategy could put both of the newly created businesses in a tough spot.

The German chipmaker announced Thursday its intention to spin off the memory division, which accounted for 41% of the company's total revenue in its latest third quarter. Infineon will concentrate on the logic business -- providing analog, mixed-signal and radio-frequency chips to the automotive and industrial electronics industries. ...