• Posted by: Technology Staff Editor
• On: 10/15/2008 11:19:01
• In: Information Technology

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MUNICH, Germany — Beleaguered memory chip maker Qimonda AG has announced a radical restructuring. Besides selling its share of the Inotera joint venture with Nanya Technology to competitor Micron Technology, the company will change its product focus, reduce capacities and shut down production lines. About 3000 jobs in Germany and the U.S will be cut.

The company plans to refocus its product range to the areas where it currently is most successful: Graphic DRAM and memory chips for servers, which as non-commodity products are less affected by the ongoing DRAM price decline. The refocusing process includes reducing its PC-related DRAM production. In terms of technology, the company plans to emphasize its Buried-Wordline transistor architecture.

In the context of this move, Qimonda sells its share of the Inotera production joint venture to Micron who will pay $400 million (about € 296 million) for the assets. According to the agreement, the Qimonda-related production at the site will be gradually reduced to zero within eight months. The sale of its shares will cause a book loss of about €300 million for Qimonda.

Another consequence of Qimonda's repositioning maneuver will be the closure of its Richmond (USA), based 200-mm fab. Likewise, the backend production in Dresden will be closed as well as several activities in Munich and Dresden (Germany) an R&D facility in Raleigh (USA). The move will cost about 3000 (of 13.500) jobs worldwide. A spokesperson pointed out that the 300-mm production line in Richmond won't be affected. The move will cause the Dresden facility to shift its focus to some extend from production to R&D, he hinted.

The spokesperson pointed out that the move is part of a global refocusing and restructuring process which goes beyond the measures announced. He said Qimonda is continuing its search for strategic partners.

At the same day, the company announced that Chief Financial Officer Michael Majerus has resigned. The move is not connected to the restructuring but comes at Majerus' own wish, the company said.