Qimonda secures 325 Million euro rescue loan
By siliconindia   |   Monday, 22 December 2008, 23:15 IST
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Berlin: German memory-chip company Qimonda has received a 325-million-euro rescue package by its parent company Infineon, the regional government, and a Portuguese state bank. While the east German state of Saxony, where Qimonda is one of the biggest employers, will provide 150 millions euros (210 million dollars) to the ailing company, Infineon will contribute a loan of 75 million euros and a Portuguese state investment bank will give 100 million euros, Qimonda said in a statement. The company also expects to receive a further 280 million euros in loan guarantees from the German federal government and the regional Saxony government. "The negotiations on the 150 million euro loan (from Saxony state) are already well-advanced," Qimonda said, adding that it hopes to bolster its research and production facility in Porto, Portugal. "We have reached a breakthrough today," said Saxony's economy minister Thomas Jurk, who also thanked his Portuguese counterpart for the quick contribution from his country's state bank. Earlier this month, Infineon issued a gloomy report for itself and its loss-making memory-chip unit Qimonda, after posting an annual loss of three billion euros (3.8 billion dollars).

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