Qimonda slashes memory production at Dresden

Memory supplier Qimonda is to slash production at its fab in Dresden to one quarter of the factory’s available capacity in a bid to stem losses. The company warned that it has until the end of March to find new sources of funding to avoid liquidation.

“We will reduce wafer starts at Dresden in order to reduce costs and safeguard liquidity. With this liquidity, we intend to expedite the development of our 46nm buried wordline technology, with which we can achieve market leading productivity and efficiency”, claimed Frank Prein, general manager of Qimonda Dresden. “The preliminary insolvency administrator and the creditors’ committee have agreed to this approach.”

The reduction of wafer starts will have no immediate effect on deliveries to customers. Unused equipment will be placed in a standby mode and can be ramped-up again at short notice, the company claimed. The company is pinning its hopes on the buried wordline technology, which Qimonda claimed offers higher productivity and energy efficiency than comparable memories.

“We are convinced that in the current situation the successful productivity improvement is the best way to convince potential investors that Qimonda has a future”, said Thomas Seifert, CFO and COO of Qimonda. “As soon as an investor is on board, Dresden can increase wafer starts again.”

Initial talks with potential investors have been held recently. “However, it is still too early to make any assessment”, according to preliminary insolvency administrator Michael Jaffé and Kin Wah Loh, president and CEO of Qimonda.

The company said new investors must be found by end of March in order to assure the future at Qimonda, otherwise the company would probably be liquidated.

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