Qimonda - one of the world's top three computer-memory chipmakers - is making Singapore its global distribution centre.

The move will boost efforts to build Singapore as a logistics hub.

Qimonda's new distribution centre at Changi South is capable of handling about three times its present capacity for worldwide distribution and will help meet the NYSE-listed company's storage needs up to 2010.

Qimonda's customers in the US, Europe and Asia Pacific will soon be receiving their orders of dynamic random access memory, or DRAM, chips from the spanking new 25,000 square feet storage and distribution facility in Singapore.

Contract-operated by DHL Express, the distribution centre is twice as large as its next biggest distribution centre in San Jose, US.

The Singapore centre presently stores the German memory chip-maker's full product range and about half of the company's global inventory.

But this is expected to go up to 70 percent by 2010.

Dr Daniel Wong, Managing Director, Qimonda Asia Pacific, said: "In the DRAM industry this year, analysts expect to grow 55 percent to 60 percent and we're definitely in line with the volume increase. Therefore, we must increase our capacity in our worldwide operation to meet our customer demands. So this is why we base ourselves here in Singapore as a global distribution centre."

Qimonda believes there will be an increase in demand for memory products in the year ahead.

Dr Wong said: "Other than the Vista effect, we see a lot of game console coming in, a lot of handheld device coming in, and those handheld devices definitely require low-power product."

Qimonda plans on doubling the size of its IT development team in Singapore to focus on developing enterprise-related products.

Over the next two years, the company plans on increasing its head count in Singapore by some 20 percent. - CNA/ch

By: DocMemory
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