Friday, January 23, 2009

The German producer of memory chips went bankrupt.

The German producer of memory chips Qimonda, a unit Infineon Technologies, filed an application for protection from bankruptcy court in Munich, reported AFP. This happened after the company was unable to agree about how to obtain assistance from the state.
In the previous fiscal year, Infineon Qimonda together and suffered a net loss of $ 3 billion euros. The fall of Qimonda, in need of cash to continue the activities had to appeal to the state. In December, the company received 325 million euros from the governments of Saxony and Germany, as well as of the Infineon. In addition, the state has provided 280 million euros as a guarantee.
However, in early January, Qimonda require additional credit value of 300 million euros. This time, the government of Saxony, underdeveloped region in the east of Germany, refused to allocate funds. Negotiations with the federal government is also stalled. According to German media, the company has failed to submit his plan of salvation.
Qimonda specializes in the manufacture of semiconductor memory to DRAM. Recently, the company faced serious competition from larger competitors from the Asian region, where production costs are lower. In October, the company had dismissed a 3 thousands of its employees in an attempt to improve efficiency.

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