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.