Qimonda goes into administration
German memory maker Qimonda is to go into administration following the failure to agree a financing deal with the regional government of Saxony, parent company Infineon and a group of banks. Qimonda’s primary fab is based in Dresden, Saxony.
A court based in Munich, where Qimonda is headquartered will appoint a preliminary insolvency administrator. The Qimonda management board aims to “restructure key business units within the context of the insolvency regime”, the company said in a statement.
“German insolvency law offers the opportunity to accelerate the restructuring process that has already been started in order to reposition the company back onto a solid base,” said Kin Wah Loh, president and CEO of Qimonda. “We assume we will be able to continue our business within the context of our restructuring program.”
Qimonda said the move into administration came as the result in the collapse of prices in the DRAM industry over the past few years, exacerbated by a sudden drop in the last quarter of 2008, coupled with problems raising finance since the credit crunch began. The company claimed customers offered financial support.
committed by customers over the past days and weeks.
In October, the company started cutting costs, with the aim of focusing on products made using its buried-wordline technology, as well as graphics products. It sold its stake in Inotera in November 2008 to reduce exposure to the PC market. Production at its 200mm fab in Richmond, Virginia and in back-end manufacturing of components and modules at Dresden is being scaled down. Product development has been consolidated at Munich and Xi’an.