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December 28, 2008

Qimonda secures $452m rescue package

The package will help the company continue operations at its German plant

By CBR Staff Writer

Germany-based chip manufacturer Qimonda has secured a E325m ($452m) rescue package.

It will receive E75m ($104m) from its parent company Infineon and E150m ($209m) from the German State of Saxony. In addition, a Portuguese state investment bank has offered a E100m ($139m) loan to the company. Qimonda also expects an additional E280m ($390m) in guarantees from the German government.

The rescue package will enable the company to continue operations at its plant in Dresden, Germany where it employs about 3,200 people. The company said it will also continue to build R&D operations in Porto, Portugal.

Kin Wan Loh, president and CEO at Qimonda, said: The move allows Qimonda to complete its repositioning and re-establish its competitive position in the memory industry as well as invest in new technology.

Earlier this year the company announced plans to cut 3,000 jobs as part of a global restructuring and cost-reduction programme to reposition itself in the weak DRAM market with a shift of focus to Graphic DRAM and memory chips for servers. The company also sold its 35.6% stake in Inotera Memories, its joint venture with Nanya, to Micron Technology for $400m.

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