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Qimonda gets ?325 million loan

by on22 December 2008

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Last minute bailout?


Things haven't been looking too good for Qimonda as of lately, but according to Digitimes, the company has now secured €325 million from a range of investors with a further €280 million in possible investments being made available in the future.

The investments are coming from some rather unexpected sources, as both the German Free State of Saxony and an un-named Portuguese investor has put in the largest shares of the money, although some €75 million comes from Infineon which is Qimonda's parent company.

The German Free State of Saxony is also the ones putting up the extra money that Qimonda might draw on in the future. However, these investments come with responsibilities for Qimonda as the company has to expand its R&D facility in Portugal and the production in its Dresden facility will be moved quickly onto Qimonda's new 46nm Buried Wordline technology to help lower manufacturing costs.

Qimonda isn't home free yet though, as the EU still have to approve the investments and if that would fall through, then things aren't looking so rosy for Qimonda. With the major DRAM manufacturers in Taiwan having problems and everyone else cutting production, we expect to see some changes in the DRAM industry over the next year. The only good news at the moment for the DRAM manufacturers is that thanks to their production cuts, DRAM prices have slowly started to go up and over the past month the average price for 1Gbit DDR2 chips have increased some 13-18 percent.

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Last modified on 22 December 2008
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