Qimonda pushes ahead with the development of its innovative Buried Wordline Technology and streamlines production capacities
Feb 3, 2009 - Munich, Germany
Qimonda AG (OTC: QMNDQ.PK) is making consistent advances in its orientation towards its Buried Wordline technology. After seeing the first generation with a size of 65nm achieve good results in mass production in Dresden, the developers have now created the first operational DDR3 memory modules based on the latest 46nm technology.
The new 46nm technology will triple the number of chips per wafer compared with the current 75nm technology, and thus is expected to increase production efficiency by 200 percent. Furthermore, preliminary results show that power consumption will be reduced by up to 75 percent. "We are confident that our new technology is the key innovation for us to move onwards into a lucrative future," says Thomas Seifert, CFO and COO of Qimonda AG. "The first successful test runs with the new 46nm module generation and the customer feedback up to now have been very encouraging."
Industry experts believe that this new generation of chip represents a clear advantage for Qimonda over the competition. The global market leader Intel Corporation also recently confirmed Qimonda's leading position in DDR3 technology.
The focus on Buried Wordline technology is therefore a key element of Qimonda's global restructuring and cost-reduction programme. At the same time, in order to stabilise its ongoing operations even further, loss-making products and contracts are being discontinued and core production activities are being intensified. This is the reason that production will now be ramped down at the Richmond 300mm manufacturing facility, Virginia (USA). Given the current macroeconomic climate, it is not possible to finance a conversion of this facility for Buried Wordline technology production. In the future, more customers will be supplied with chips from the plant in Dresden. Approximately 1,500 employees are affected by this restructuring measure. Production at the other Qimonda AG facilities continues for the time being.
"This is an essential step for us in order to improve our production efficiency and thoroughly orient Qimonda towards the next generation of memory, the innovative Buried Wordline technology," said Thomas Seifert, member of the management board of Qimonda. In addition, establishing the viability of the core development and production capabilities of the company is a critical first step in the search for new investors.
No final decisions have yet been taken concerning the future structure of the company, including whether those of its businesses that can be continued will be held through Qimonda AG or placed in a new company owned by new investors. In the latter case, or if investors cannot be found to finance the continuation of Qimonda's businesses, Qimonda AG would likely be liquidated.
Qimonda AG (NYSE: QI) is a global memory supplier with a diversified DRAM product portfolio. The company generated net sales of Euro 1.79 billion in financial year 2008 and had - prior to its announcement of a repositioning of its business - approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond (Virginia, USA). The company provides DRAM products with a focus on infrastructure and graphics applications, using its power saving technologies and designs. Qimonda is an active innovator and brings high performance, low power consumption and small chip sizes to the market based on its breakthrough Buried Wordline technology. Qimonda is currently continuing its operations while in the early stages of insolvency proceedings under German law. Further information is available at http://www.qimonda.com.
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