Siemens denies semiconductor sale

Siemens has moved to scotch rumours that its loss-making semiconductor division is up for sale.

A spokeswoman for the German engineering group told Silicon: "Our chief executive has made it clear that chips are a core business to Siemens. Our operation is among the top ten in the world."

Earlier this week, news services picked up on an Associated Press report, saying Siemens would sell five companies employing 1,000 workers. However, the spokeswoman said recent comments by CEO Heinrich von Pierer had been misinterpreted. Last week he admitted the company's semiconductor unit is forecast to lose more than DM1bn this fiscal year, but said it was among several poorly performing units which would be looked at closely.

Siemens recently sold its power cables group, and subsidiary Siemens-Nixdorf sold its European manufacturing plant to Acer earlier in the year.