Infineon sees no chance for partnerships now-paper

FRANKFURT, May 24 (Reuters) - Struggling German chipmaker Infineon (IFXGn.DE: Quote, Profile, Research) currently has no chance of entering partnerships or alliances due to a major slowdown in the semiconductor industry, its two top executives said.

CEO Peter Bauer and chairman Max-Dietrich Kley told German daily Die Welt in a joint interview to be published on Monday that they saw no opportunities as there was little movement in the market and many companies were burdened with debt.

Kley had said in February the company was considering a partnership in Europe or Asia.

"Everyone is looking to keep their cash. And so are we," Bauer said.

The Munich-based chipmaker, floated in 2000, faces refinancing needs of around 600 million euros ($840 million) over the next year and has pledged to come up with a refinancing plan by the summer.

Kley declined to say whether Infineon had asked for state aid saying only: "Any talks held with Berlin would be handled quietly and discreet and would not be discussed in public."

Bauer said that "it was difficult to receive normal loans without securities in the current situation. We did generate proceeds of 180 million euros last week with a convertible bond issue."

Infineon is suffering from a collapse in the global car market, inventory reductions throughout the electronics supply chain and exposure to its insolvent memory chip unit Qimonda (QMNDQ.PK: Quote, Profile, Research).

"There are different possibilities for a company to close financial gaps. One can increase cost savings, sell assets, enter strategic partnerships, to name a few," Bauer said.