Seminar paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, Leeds Metropolitan University (Leeds Business School), course: Managing International Partnerships, language: English, abstract: As a result of the merger between Infineon Technologies AG and Philips Semiconductors, Infineon Philips Semiconductors AG (IPS) would rank third amongst the worlds largest manufacturers of semiconductors, with 5.9% of total sales. Infineon would gain access to Philips customer base which demands profitable chips for consumer electronics and mobile solutions. Its presence in the growing markets of Asia will be strengthened. By merging the two companies, a strategic fit would be achieved in terms of geographic market penetration and market sectors. Furthermore, the size of IPS would streamline efficiency and secure the long-term survival in a highly-competitive market with intensifying pressures from Asian manufacturers. Another objective is to combine both companies competencies in order to develop smaller wafers and to conduct research on nanotechnology. The strengthened capital basis enables IPS to enlarge investments in R&D and production facilities. Major shareholders of IPS would be Siemens AG and the Philips Group.