Qimonda AG announced today that it has arranged a Euro 325 million financing package for the ramp up of its innovative Buried Wordline technology.
The package includes a Euro 150 million loan from the German Free
State of Saxony, a Euro 100 million loan from a leading financial
institution in Portugal and a Euro 75 million loan from Qimonda?s
parent company Infineon. In addition, Qimonda will have the
opportunity to draw on a Euro 280 million state guarantee by the
Federal Republic of Germany and the Free State of Saxony. Qimonda is
in advanced negotiations concerning the financing of Euro 150
million of this amount.
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
"The financing arrangements are based on the significant potentials
offered by our highly innovative Buried Wordline Technology. They
allow Qimonda to complete its repositioning, ramp up this exciting
technology and re-establish its competitive position in the memory
industry", said Kin Wah Loh, CEO and president of Qimonda AG. "We
thank especially the Free State of Saxony, Portugal and Infineon for
their trust in our innovation and execution capabilities."
Qimonda had been searching desperately for an investor and asked for
public aid. the company plans to report its Q4 and financial year
2008 earnings by the middle of January.