Infineon is divesting its memory business as it directs investment toward automotive and other strategic growth markets.

Infineon Technologies has agreed to sell its NOR Flash and F-RAM business to Taiwan-based Winbond Electronics Corp. for $1.12 billion in an all-cash transaction. The transaction is subject to regulatory approval, with closing currently targeted for the second half of 2027.

For Infineon, the deal is part of a broader effort to concentrate its portfolio and capital spending on areas it sees as its main growth drivers.

“The transaction represents a highly compelling strategic outcome for all stakeholders,” said Peter Schiefer, president of Infineon’s Automotive Division, in a press statement. “It allows Infineon to further focus its portfolio and capital allocation on its core growth drivers. At the same time, it enables our NOR Flash and F-RAM business to unlock its full potential.”

Winbond’s existing focus on memory products provides a natural fit for the business being divested. The two companies’ portfolios will be combined to give customers a broader range of NOR Flash and F-RAM devices.

Winbond plans to run the acquired business as a standalone entity, with its headquarters in Silicon Valley, California.

Meanwhile, Infineon will continue to offer several specialty memory technologies, including SRAM, HYPERRAM, nvSRAM and SONOS-based radiation-hardened memory, for automotive, industrial, infrastructure, aerospace and defense applications.