Qimonda had already announced the decision to close a 300-mm wafer fab in Sandston, Virginia, earlier this month.

At the same time as announcing the slowdown at Dresden Qimonda said had made further progress with the development of its 46-nm Buried Wordline technology and has been able to improve yields of this manufacturing process faster than originally expected.

"We will reduce wafer starts at Dresden in order to reduce costs and safeguard liquidity. With this liquidity, we intend to expedite the development of our 46-nm buried wordline technology, with which we can achieve market leading productivity and efficiency. The preliminary insolvency administrator and the creditors' committee have agreed to this approach," said Frank Prein, general manager of Qimonda Dresden GmbH & Co. OHG, in a statement.

The reduction of wafer starts will have no immediate effect on deliveries to customers. Unused equipment will be placed in a standby mode and can be ramped-up again at short notice, Qimonda said.

The company did not say what would happen to staff at Dresden.

With regard to the 46-nm BWL technology Thomas Seifert, CFO and COO of Qimonda AG, said: "We are convinced that in the current situation the successful productivity improvement is the best way to convince potential investors that Qimonda has a future. As soon as an investor is on board, Dresden can increase wafer starts again."

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