Infineon, Huawei ink framework purchase agreement


Infineon Technologies AG has signed a letter of intent for framework purchase agreement amounting $68 million with China‘s Huawei Technologies Co. Ltd. This deal, as an important part of the recent European procurement tour of China’s business delegation, is intended to supply end-to-end chip solutions to Huawei’s wireline and wireless communication systems. Infineon will provide semiconductor solutions for Huawei in the area of central office solutions, customer premise equipment and mobile phone platforms.

As one of the major deals signed on this tour, Huawei will purchase semiconductor solutions from Infineon worth of $68 million in 2009. Shipment of the first products has already started.

“We feel very much honored to sign this agreement with Huawei,” said Dominik Bilo, senior VP of sales, marketing and distribution of Infineon at the signing ceremony in Frankfurt, Germany. “Huawei and Infineon are maintaining a very positive and long-lasting business relationship.”

Despite the global financial recession, China supports the European enterprises with its strong purchasing power. In late February, a business delegation of about 200 China entrepreneurs, led by Commerce Minister Chen Deming, made a procurement tour to Germany, Switzerland, Spain and United Kingdom. In Germany only, this delegation signed a total of 37 procurement deals worth around $14 billion with local companies, focusing on electronics, automotive, machinery and health care.


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