Qimonda, Infineon’s DRAM subsidiary, is to get E165m of regional aid from the State of Saxony to upgrade its existing DRAM plant there and build a new one.

The investment will, according to EC competition commissioner, Neelie Kroes: “Contribute to not only regional development and job creation in a disadvantaged region of Germany, but also benefit the competitiveness of the European economy as a whole.”

According to the EC, Saxony is: “A disadvantaged area with an abnormally low standard of living and serious unemployment.” This is why it qualifies for the grant.

Qimonda’s future was threatened by the lack of potential to expand which is always the harbinger of death in the memory business. With the grants, Qimonda’s future has been secured, especially if the 2007 price war in the DRAM industry does not spill over into 2008.

By: DocMemory
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