Wednesday, September 17, 2014

Infineon Technologies: Time to Cash-in your Chips?

GROMB Denis, PERESS Joel
©2014 INSEAD Case Study
Also available: Teaching Note
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In late 2011, Infineon (IFX), a German semiconductor company, is sitting on a €2.4bn cash balance representing 40% of its assets. As part of a financial policy review, management is receiving conflicting advice from different quarters as to whether to pay out some of the cash holdings, how much and by which methods.