Infineon mulls what to do with cash from unit sale

FRANKFURT, GERMANY: German chipmaker Infineon is undecided on what to do with the proceeds from the sale of its wireless unit and is in no rush to make acquisitions, its top executive said.

“We are under no pressure to make acquisitions just because we have a lot of cash,” chief executive Peter Bauer told journalists late on Tuesday

Despite filled coffers, Bauer said that he does not expect the company to become a takeover target anytime soon.

Infineon sold its mobile chip unit to U.S chipmaker Intel for $1.4 billion on August 30. The deal is expected to close early 2011.

On Tuesday, Infineon raised its full-year outlook for the second time this year after the wireless business sold more chips for smart phones than expected.

Bauer also said the company expected to find a new finance head by the start of next year. Its finance chief Marco Schroeter left Infineon in August due to differences over company strategy.