Refocusing the business group as an Access Solution Provider
Telephone lines are no longer used just for standard voice communication. Many services such as the transmission of large amounts of data, multimedia applications, and IP telephony are now delivered over the very same telephone line. Today, the broadband service provider industry is one of the fastest-growing sectors of voice and data communications, and Infineon's Wireline Communications business group designs products for these markets. In addition to traditional telephony products, Infineon provides a wide range of system solutions for efficient transmission of fast "triple play" services that include voice, data, and video. Wireline Communications' products comprise "core to door" semiconductor solutions from the metro rings via Central Offices (COs) all the way to customers' premises.
Business situation
Infineon is a leading semiconductor supplier to the telecommunications industry. Its revenues therefore depend strongly on how much telecom companies invest in their infrastructure. While traditional voice transmission technologies such as analog telephony and ISDN no longer offer growth potential, broadband access technologies such as ASDL, in particular, are enjoying growing popularity. Network applications are also being used more frequently in private homes. Infineon serves this market segment with wired and wireless home gateway solutions. These systems work as integrated access points for voice, video, and data services to the premises, and as routers to create and control home networking. Together with high-speed Internet access, home applications form a rapidly growing, highly competitive market.
Strategic orientation
Infineon is the world's leading supplier of semiconductors for traditional telecommunication infrastructure, with a comprehensive range of traditional voice products (analog linecards, ISDN, T/E carrier, etc.). Leveraging its top position in this industry, Infineon addresses the growing demand for VoIP solutions by offering advanced IP phone and Analog Telephone Adaptors (ATA) to enable VoIP technology on any analog telephone line. In addition, Infineon plans to complete its portfolio with end-to-end xDSL access technologies for Broadband In The Home (BBITH) and digital home networking.
With the acquisition of the Taiwanese company ADMtek, a semiconductor supplier for Customer Premise Equipment (CPE) applications, Infineon can now provide complete broadband communication solutions for both ends of the communication line, from the Central Office to the individual user. Adding CPE solutions to our portfolio also gives us access to the promising digital home-networking market, allowing triple play services in private homes and business centers via broadband. Digital home networking enables the connection of televisions, telephones, computers, surround voice systems, and other devices either via Wireless LAN or wireline home gateway. Our regional presence in Taiwan - just around the corner from the world's leading CPE manufacturers - offers an excellentstarting point for market development.