• Posted by: Technology Staff Editor
• On: 04/29/2008 10:19:05
• In: Information Technology

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SAN JOSE, Calif. -- Amid another huge loss for the quarter, German DRAM maker Qimonda AG has cut its workforce by about 10 percent and slashed its R&D costs.

At the same time, Infineon Technologies AG (Munich) has taken the next step in preparation for the planned ''disposal and resulting deconsolidation'' of its investment in Qimonda, also of Munich. Infineon has taken a write-down of 61 million euros ($97 million) for goodwill impairment in Qimonda, which was spun-off of Infineon several years ago.

Qimonda has also moved to cut costs following a DRAM downturn, which started in 2007. Elpida, Hynix, Micron and other DRAM makers are also suffering.

In recent times, Qimonda has cut capital expenditures approximately by half, by phasing out less productive 200-mm foundries and reducing 300-mm foundry capacities.

Now, in a move to reduce its breakeven point, the company is reducing its workforce in the range of 10 percent. It also has reduced its nonvolatile memory development to basic research activities. The related agreement with Taiwan's Macronix International Co. Ltd. (Hsinchu) will be terminated.

Qimonda also said sales decreased to 412 million euros ($655.4 million) in the second quarter, down 20 percent from the first quarter and down 58 percent a year ago. Net loss was 482 million euros ($766.8 million), compared to a net loss of 598 million euros ($951.2 million) in the first quarter.

''Even though second quarter results show an improvement compared to last quarter, we are still operating in extremely difficult market conditions,'' said Kin Wah Loh, president and CEO of Qimonda, in a statement.