The European Commission has approved the joint venture contract signed by German technology companies Infineon and Siemens, stating that their combined strengths will not alter the market.
In September 2007, Siemens Power Transmission and Distribution (PTD) and Infineon Technologies signed a contract for the establishment of a joint venture for the development and production of bipolar high-power semiconductors, used for applications such as electricity transmission and distribution systems.
Under the terms of the agreement, Infineon will transfer its bipolar high-power semiconductors activities to the joint venture, a field in which Siemens is not currently active. According to Siemens, the joint venture will concentrate on high-voltage direct current transmission.
The European Commission evaluated the potential effects of the joint venture, which could have a negative effect on the competition in the market for supplies of bipolar high and highest-power semiconductors. However, the commission concluded that the proposed concentration would not have such results because a sufficient number of competitors will remain.
The new company derives from a partnership for the further development of high-power thyristors and expansion of the technology from five to six inches, with which even greater amounts of power can be efficiently transmitted. This will enable us to safeguard our international competitiveness in this specific field for the years ahead, said Udo Niehage, group president at Siemens PTD.
Infineon has 60% stake in the newly formed joint venture company, which is expected to trade as a GmbH & Co. KG.
Source: ComputerWire daily updates