MUNICH, Germany Qimonda will cut back its 200-mm production and focus on 300-mm in the future. The move affects its production Richmond (USA) and in Dresden and parent company Infineon.
As a measure to improve its productivity, loss-making memory chip maker Qimonda announced Friday (Nov 30) it has cancelled a 200-mm wafer supply agreement with Infineon, effective March 1, 2008. The last wafers in this production line will be started end of February.
In addition, Qimonda will reduce the number of wafer starts in Richmond by about 15 percent. At the same time, the Richmond production will move to 80-nm geometries. As a consequence of both moves, the 300-mm share of Qimonda's production will climb to about 90 percent.
Qimonda's withdrawal from Infineon's production activities in Dresden will require adjustments both in terms of capacity utilization and staff, Infineon informed in a press release. Both companies will terminate the contracts for 300 workers each, totaling to 600 job cuts. According to the companies, only workers from temporary employment agencies will be affected. "Our goal is not to cut jobs of our permanent staff", an Infineon spokesperson said.
In Richmond, the move will have only "insignificant" consequences for the staff, explained a Qimonda spokesperson.
In Dresden, Qimonda presently employs about 3000 persons, most of them in 300-mm production. At the same site, Infineon runs its logic chip production with 2300 persons.
Infineon now puts Qimonda's move as the final step in the transition from memory production to the production of logic chips. According to the company's most recent quarterly report, demand for logic devices from automotive, industrial, and communications customers is rising.