Infineon sees single digit revenue rise 2011-paper

FRANKFURT, July 15 (Reuters) - Infineon (IFXGn.DE) expects the recovery in the semiconductor industry to last for a while, leading to a high, single-digit rise in revenue for 2010/2011, Chief Executive Peter Bauer told Sueddeutsche Zeitung.

Bauer told the German daily paper he expects Infineon to grow in all its divisions.

Infineon is expanding production capacity by 20 percent at its Dresden factory by year end, Sueddeutsche said in an advance copy of its Friday edition.

Bauer downplayed the prospect of Russian firm Sistema (SSAq.L) taking a stake, telling Suedddeutsche there were "no talks between Infineon and Sistema about taking a stake."

Earlier this week German government sources told Reuters Sistema was interested in taking a stake in the German semiconductor maker. [ID:nLDE66C1F2] (Reporting by Edward Taylor, editing by Leslie Gevirtz)