Infineon to spend $1B on U.S. chip plant

RICHMOND, Va.-Infineon Technologies AG said it plans to spend $1 billion to build a chip plant here, a move that stokes anxiety that it could create market glut.

However, the move also negates a trend of companies moving jobs to Asia. It will increase employees by 800 people. The staff will rise to 2,550 from 1,750, according to the company.

The company also posted a quarterly net profit of $46.1 million compared with a loss of $387 million in the same quarter last year.

The company’s fortunes attracted mixed reviews from the market. While UBS, Smith Barney and HVB Group pared their ratings on the German chipmaker, Morgan Stanley, Goldman Sachs and Societe Generale maintained buy ratings.