(Associated Press via NewsEdge) German chip maker Infineon Technologies said it will restructure its mobile telecommunications business, cutting 400 jobs, after the German mobile phone unit of BenQ filed for bankruptcy protection.
Infineon said the bankruptcy of BenQ Mobile, which was a major customer, also would result in charges this year of about 80 million euros ($100.3 million).
BenQ Mobile filed for bankruptcy protection on September 29 after its Taiwanese parent abandoned an attempt to turn around the money-losing business it bought from Siemens a year earlier. The unit's bankruptcy administrator has said it will shed nearly 2,000 jobs in a bid to salvage the business.
Munich-based Infineon said the bankruptcy would likely cause an estimated loss of 150 million euros ($188.1 million) in sales during the 2007 fiscal year, with 40 million euros to 50 million euros ($50.2 million to $62.7 million) of that in the first quarter alone. It estimated the restructuring of its mobile unit would cost an estimated 30 million euros ($37.6 million), but predicted that it would break even by the end of 2007. Of the 400 jobs that will be cut, 200 will go in Germany.
Infineon manufactures semiconductors and memory chips for the computer, communications, automotive and industrial industries. It employs more than 36,000 workers worldwide.
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