Qimonda has until end of March to attract new investment

Qimonda must find a solution to its current cash problem by the end of March in order to continue operations as is, the DRAM maker said in a statement on Tuesday.

Failure to find investors or a viable way to move forward by that time could result in the liquidation of the company, it said.

The company said it cut back on chip production at its factory in Germany to reduce costs and conserve cash as it works through its restructuring program.

Chips already under production will be finished, but the company will reduce to about one quarter of available capacity the start of new chips on its production lines.

"The reduction in wafer starts at Dresden will have no immediate effect on deliveries to customers," Qimonda said in a statement. "Unused equipment will be placed in a standby mode and can be ramped-up again at short notice."

The DRAM maker hopes investors will look positively on new production line technology it is ramping up, 46-nanometer Buried Wordline technology. Qimonda has been able to improve yields faster than originally expected, it said.

Qimonda filed for bankruptcy protection in Germany last month after it failed to receive in time a financing package to keep it going. DRAM makers globally have been hit by a nearly two-year long DRAM downturn and the current global recession.

Two Taiwanese DRAM makers that used to partner with the company have already announced expected losses related to their business with Qimonda.

Inotera Memories, formerly a joint venture between Qimonda and Taiwan's Nanya Technology, has already given up on the idea of collecting NT$3.4 billion (US$101 million) owed by Qimonda. Winbond Electronics says Qimonda owes it NT$950 million in accounts receivable for DRAM chips.

IDG News Service

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