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RF Micro exits WLAN chips, Infineon mulls wireless future

Two chipmakers are either selling or mulling selling part of their wireless businesses, while another company is selling its shares in a semiconductor firm.

RF Micro Devices Inc. said it is doing away with its wireless local area network chip business in a move that will spell job cuts, office closings and the transfer of people and resources to other offices.

Separately, Infineon Inc. said it plans to either sell or close its money-losing wireless chip business. Infineon also leaves open the option of turning around its wireless business, according to Wolfgang Ziebart, Infineon chief executive officer. The chipmaker is not only mulling the future of its chip business but also its optical networks division.

RFMD did not disclose the number of employees it plans to lay off, but indicated it would affect workers in its San Jose, Calif., location, where it will reduce the work force. It does plan to close offices in Moscow and Leuven, Belgium.

The chipmaker said it expects to save about $18 million to $22 million per year, commencing in the company’s 2006 fiscal year, which begins in April next year. The company notes that the actions will bring about a non-cash charge of between about $37 million and $41 million.

The company expects its actions to “enable RFMD to sharpen its strategic focus on our greatest opportunities for long-term, profitable growth, including our industry-leading cellular transceivers and our Bluetooth products,” said Bob Bruggeworth, president and CEO of the chipmaker.

Motorola Inc. said it has raised $108.8 million from the sale of about 517.5 million shares in Chinese chipmaker Semiconductor Manufacturing International Corp.

Motorola will now own 4 percent of SMIC, which raised $1.8 billion in its initial public offering last year. Motorola also recently spun off its chip division, now known as Freescale Semiconductors Inc.

Motorola acquired part of SMIC when it sold a chip plant in China to the company.

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