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Qimonda still searching for investor but time runs out

5/11/2009 02:00 PM EDT
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CLiHsing
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re: Qimonda still searching for investor but time runs out
CLiHsing   5/15/2009 8:11:59 PM
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Qimonda cannot compete with other companies in the United States and Korea on cost. Qimonda's gross margins are far worse and far more negative. For example Micron was able to use more 200mm fabs and for a longer time than Qimonda. Qimonda was forced to switch more quickly to 300mm because its process technology is not as cost-efficient. Qimonda burned cash much faster than competitors even with its numerous higher-priced specialty parts and heavy use of 300mm fabs. Numerous Qimonda employees, especially those in Virginia, also complained about an extremely poor and undisciplined management style with way too many layers of management. Besides some of the Taiwanese firms, Elpida appears to be next in line to fail if DRAM prices remain at depressed levels. Elpida's gross margins have fallen to shocking levels. Even while using 8F2 technology, Hynix' gross margins are much better than Elpida's, and Micron CEO Steve Appleton recently said, "Our technology is far better than Elpida's." Elpida is left scrambling to get help from the Taiwanese or Japanese government. It is clear that cost efficiency involves far more than simply die size or 8F2 versus 6F2. Secret recipes and sauces are involved.

Kaiser Silicon
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re: Qimonda still searching for investor but time runs out
Kaiser Silicon   5/14/2009 5:18:33 AM
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Well, I'm on the other side of the Atlantic. QR has already been abandoned. I do agree that fabs and other high tech manufacturing places are needed to maintain a high standard of living. - I do think that QD and QR are capable of making other products. I think it would be a good idea to manufacture multiple products so as to not be reliant on one product or one market segment. - I do stand by my statement that Qimonda should fold its cards, sell to someone else at any price, and give someone else an opportunity to manage these fabs. Some other process besides DT or BWL is needed. While DRAM might be part of the portfolio, there should be many, many other products. As for the process technology, it's too expensive to go it alone. It must be stacked. - Something that might be possible for DD is to merge with the former AMD fab and get access to the cash from Dubai. I might even say give the fab away with strings attached. - As for Richmond, perhaps just give the fab to Micron or Intel or Samsung. However, the debts that Qimonda left behind in Richmond make even a deal like that difficult to execute.

kicker24
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re: Qimonda still searching for investor but time runs out
kicker24   5/11/2009 11:02:54 PM
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Kaiser, don't be naiv. In that circumstances no production can take place on Qimonda Plants. The market is oversupplied. The only reasonable use of the DD plant could be to mimic IMEC business model. But even that way could be too late to discuss. Semiconductors are not system relevant as it was stated in some EU reports. That is tragic decision which has its impact on the future of european economic situation. In the same time Asia and their goverments do everything to get the place under Sun. They know without resources only technology can keep the life standard on the high level. Europe given up one by one the industry leaders should be prepared to the tough future and in the first order to washing out the brains (well educated people). ...On the cost level Europe can not compete with Asia...

Kaiser Silicon
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re: Qimonda still searching for investor but time runs out
Kaiser Silicon   5/11/2009 3:19:20 PM
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Please. Give it up. The game is over. Just go to Ebay, put the company up for sale, let whoever the highest bidder is make your problems disappear, and let someone with deep pockets, a manufacturable process, and competent maangement take over the soon to be ex-Qimonda sites. More to the point, let those of us who are out of work have a chance at getting employment with whomever the new owner of the Qimonda sites will be. Sooner is better than later.

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