Infineon explores Qimonda stake cut after weak Q3

Wolfgang Ziebart said on a conference call he could not be more specific about the options Infineon was exploring but added: "Long-term, we do not expect to own any Qimonda shares."

Earlier on Friday, Infineon posted lacklustre results for its core logic business in phone, automotive and industrial chips. Earnings before interest and tax (EBIT) were flat quarter on quarter at 13 million euros ($18 million).

Profits were hurt by a strong euro and restructuring charges, while sales at the phone-chips division, whose customers include Apple and Nokia, grew by a slower-than-expected 9 percent.

Infineon said it expected EBIT to grow strongly at its former Qimonda businesses this quarter and sales should also rise, driven by the phone chips business.

Shares in Infineon traded up 3.3 percent at 12.60 euros by 0905 GMT, the best performer in a flat German blue-chip DAX index, reversing sharp losses at the market open.

A reduction of Infineon's 86-percent stake in Qimonda -- which, like other memory-chip makers reported deep losses last quarter -- is seen as necessary to boost Infineon's valuation.

Total sales at Infineon's core businesses rose 3 percent in the quarter to end-June over the previous quarter to 1.01 billion euros, in line with forecasts.

EBIT at automotive and industrial division AIM declined slightly, excluding a one-off gain from the sale of a fiber-optics unit.

"The numbers themselves were a bit light in the logic businesses, especially on the (communications division) Com revenue side," said analyst Scott Geels of Sanford Bernstein.