Qimonda has announced that the company has arranged a financing package of 325 million euros (US$445.58 million) for the ramp up of its Buried Wordline technology. The rescue package includes loans of 150 million euros from the German Free State of Saxony, 100 million euros from an unnamed financial institution in Portugal and 75 million euros from the chipmaker's parent company Infineon Technologies.

In addition, Qimonda will have the opportunity to draw on a 280 million-euro state guarantee by the Federal Republic of Germany and the Free State of Saxony. Qimonda is in negotiations concerning the financing of 150 million euros of this amount, according to the company.

In return, Qimonda has committed the further development of its R&D and manufacturing sites in Porto, Portugal and Dresden, Germany. The company is increasing R&D efforts in Porto and intends to quickly ramp up its new 46nm Buried Wordline technology and improve economies of scale in manufacturing at its lead facility in Dresden. The arrangements are subject to the finalization of the detailed terms of the loans and the relevant governmental and European procedures.

Qimonda plans to report its fourth-quarter and financial year 2008 earnings once management and its auditors have completed the work necessary to reflect the arrangement on its financial condition, including the review of its long-lived assets for impairment that it announced in connection with the preparation of its full-year results. The earnings announcement will take place by the middle of January, 2009

By: DocMemory
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