Infineon Caught Cheating

WASHINGTON, D.C. -- Infineon Technologies AG (NYSE/Frankfurt: IFX) has got a little explaining to do after trying to pass off one of its customer's products as one of its own at the Comnet show.

In presentations to journalists, Infineon cited the development of an 8x8 optical switch as one of its “breakthroughs” in optical networking, noting that it was “developed in strategic partnership” with Lynx Photonic Networks, a startup also exhibiting at the show.

In fact, Lynx developed the switch alone, according to Lynx executives (see Lynx Claims Optical Switch Advance). Infineon merely manufactured the wafer used in part of the switch, they say.

When shown Infineon's press material, Lynx executives were taken aback. “It’s very misleading,” said Dick Sadai, Lynx's senior vice president of global business development. “It’s bordering on fraudulent,” added Abe Queller, Lynx’s vice president of global business development.

Infineon is an investor in Lynx, but no marketing agreement is in place that would allow Infineon to sell Lynx’s switch, Queller said.

Infineon's PR director, Chris Goodhart, confused the issue further in a voice mail response to Light Reading's request for clarification. "At this time, Lynx is the only one sponsoring this product. We are not selling it, not yet," she said.

-- Peter Heywood, international editor, Light Reading http://www.lightreading.com