Infineon, Toshiba DRAM merger deal due by year end

German semiconductor maker Infineon Technologies AG expects to reach agreement on the merger of its DRAM (dynamic random access memory) business with that of Japan's Toshiba Corp. by the end of the year, an Infineon spokesman said Thursday.

The spokesman would not say whether the cooperation would take the form of a joint venture or of one company taking over the other's DRAM operations.

"The negotiations are underway; how it will turn out is part of the discussion," he said.

Toshiba made it clear earlier this year that it wants to join forces with another company on DRAM production, after a collapse in the price of the memory chips made it impossible for individual companies to make money on their manufacture. Along with Infineon, South Korea's Samsung Electronics Co. Ltd. was seen as a possible partner for Toshiba.

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