MUNICH Insolvent DRAM manufacturer Qimonda AG's Dresden fab, which has been set into a 'sleep mode' in April, will be switched off for good by the end of the year. In his search for an investor, insolvency administrator Michael Jaffé hoists the white flag.
According to media releases, the insolvency administrator has agreed with the workers' council to switch to liquidation mode after having adamantine searched for an investor for the fab as a whole for many months. By the end of the year, the fab will be switched off completely and sold in parts and pieces. Of the 200 employees currently working to maintain the equipment, 50 percent will be laid off.
Ironically, this comes at a point in time when many chip manufacturers are at the verge of cranking up their production. Market watchers see the price for DRAMs rising, and in some market segments even shortages are seen emerging.
According to the releases, prospective equipment buyers are currently touring Qimonda's fab in Dresden. The sell-off is overseen by the two general managers of the Dresden site, Frank Prein and Wolfgang Schmid. Former CEO Kin Wah Loh has left the company with unknown destination.
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