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The German Word for Bankrupt is.....Bankrupt

Qimonda, at one time the second largest DRAM manufacturer in the world, has filed for insolvency under German law, the equivalent of Chapter 11 bankruptcy protection in the United States. Such action provides creditor protection while it reorganizes its operations and restructures its debt.

Formed from the memory technology assets of Infineon in 2006, Qimonda was hit hard both by falling DRAM prices and the global credit crunch. Its name never really caught on either, as the Infineon brand was well known worldwide. It also sounded much cooler.

Qimonda was one of the first DRAM manufacturers to build on 300mm wafers, greatly lowering production costs but requiring costly initial investments. It now ranks fourth in production, behind Samsung, Hynix, and Elpida.

They had a much vaunted strategic alliance with Nanya through their joint venture Inotera Memories, but split after Nanya decided not to pursue development of Qimonda's Buried Wordline Technology. Qimonda sold its stake in Inotera to Micron last October.

Qimonda is currently dependent on its "Deep Trench" technology in comparison to the standard stacked capacitors of most DRAM manufacturers. Deep Trench technology has the potential for much smaller die sizes, along with lower power consumption due to lower current leakage. This makes it ideal for notebooks and netbooks, allowing for greater battery life.

However, Qimonda has had trouble in transitioning to lower process geometries due to technical hurdles in this esoteric technology.

Similar troubles have delayed its new evolutionary Buried Wordline Technology, which incorporated Deep Trench technology along with lower costs and a simplified manufacturing process. It featured unprecedented die sizes for DRAM, which would have made it extremely cost effective to produce on 300mm lines. They predicted that a 46nm line using Buried Wordline would produce four times as many dies as a 75nm Deep Trench line on 300mm.

In November 2008, Qimonda announced initial sales of 1Gb DDR2 using 65nm, and sampling of 46nm 2Gb DDR3 using Buried Wordline. It wanted to introduce mass production of 46nm 2Gb DDR3 in the middle of 2009, to compete with 50nm DDR3 chips from Samsung and Elpida.

It is unclear how much their product development will be affected. Their roadmap currently includes plans to produce 32nm DDR3 in 2010.



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Debtor, Not Creditor
By Sahrin on 1/23/2009 7:37:05 PM , Rating: 1
quote:
Such action provides creditor protection while it reorganizes its operations and restructures its debt.


I think you mean "debtor" here - creditors don't need protection, they have rights; debtors don't when they violate repayment agreements (what bankruptcy is - inability to pay creditors).




RE: Debtor, Not Creditor
By soydeedo on 1/23/2009 8:34:15 PM , Rating: 4
That's why they said creditor protection...protection from creditors. When I install anti-virus protection it's not to protect the viruses. =P


RE: Debtor, Not Creditor
By Omega215D on 1/25/2009 5:37:58 AM , Rating: 2
Your ideas are intriguing to me and I wish to subscribe to your newsletter


RE: Debtor, Not Creditor
By Zshazz on 1/25/2009 8:23:12 PM , Rating: 3
Indeed. It's to protect you from the anti-viruses =P


RE: Debtor, Not Creditor
By dj LiTh on 1/23/2009 9:27:09 PM , Rating: 2
quote:
I think you mean "debtor" here - creditors don't need protection, they have rights; debtors don't when they violate repayment agreements (what bankruptcy is - inability to pay creditors).


Creditor's are the people who are lending the money. So they are correct in seeking protection from creditors harrassing them for payments while they get their business sorted out without further actions being taken against them


RE: Debtor, Not Creditor
By SiliconDoc on 1/24/2009 2:22:40 AM , Rating: 2
Man alive no wonder the world is going to H in a handbasket. Creditor protection means the reformed company under chapter 11 gets a chance to cut their expenses, thereby protecting the creditors who loaned them all the money they blew and haven't paid back.
The creditor is protected with the chance the company can slavage itself, cut the fat, start making a profit, and pay back the creditors. When a company is collasped without creditor protection it goes for a dime on the dollar and the lenders stand to lose big.
Yes, it also protects the company itself, it's better to reorganize than go down completely. A second chance.


RE: Debtor, Not Creditor
By Sahrin on 1/25/2009 2:13:19 PM , Rating: 3
In a Chapter 11 bankruptcy, the company filing is requesting protection from its creditors who, due to the terms of the loans made to the company, have rights to take potentially harmful action against the company. When a company files for Chapter 11, the creditors *lose* those rights, and a judge determines what, if any, repayment creditors recieve. Once a company emerges from bankruptcy, it doesn't matter how successful they are - they never have to pay back the debt that was wiped away by the bankrupcty court.

Creditors aren't protected by bankruptcy, companies are. Creditors are protected by the absence of a bankrupcty - because it means they get control of the company (or its assets) when the company fails to pay back its debts.


There go prices
By DarkElfa on 1/23/2009 4:11:00 PM , Rating: 1
Well, this is sure to raise the minimum.




RE: There go prices
By othercents on 1/23/2009 4:35:34 PM , Rating: 1
Demand is still low and there is still overstock in memory, so I doubt this will effect prices in the immediate future especially since they are filing for bankruptcy protection and not closing their doors.

Other


RE: There go prices
By etherreal on 1/23/2009 5:17:00 PM , Rating: 2
Since no DRAM maker is making money, prices will have to go up at some point. Most likely when the least competitve makers get shaken out of the market.


RE: There go prices
By 67STANG on 1/23/09, Rating: -1
RE: There go prices
By PrinceGaz on 1/23/2009 7:43:10 PM , Rating: 2
quote:
If only they would have done price fixing like the LCD makers, this wouldn't have happened. =)


They tried that a few years ago, and got hit with serious fines.


RE: There go prices
By nilepez on 1/23/2009 11:55:08 PM , Rating: 2
The new technology is DDR3, which is significantly more expensive, and I suspect they make money off of them too. However, as long as DDR2 is reasonable, and Intel is supporting that on Core2 chip sets, I don't see much changing.

In the desktop space, the demand for I7 chips will be limited until prices drop dramatically. As it stands, even if you get an i7 for 150, it'd still cost you significantly more than a Core2 rig, thanks to MB and RAM prices.


RE: There go prices
By Penti on 1/24/2009 6:00:16 PM , Rating: 2
It's the Core i5 that will be the mainstream in the desktop segment.


Author is misleading
By bullsfusion on 1/24/2009 4:57:50 PM , Rating: 2
As a person who happens to work in the memory industry, I found the author's claims about Qimonda's deep trench technology totally misleading. This technology is a legacy and incompetitive one which to a large extent explains why Qimonda lags behind its competitors who use the stack technology. To put it the other way, Qimonda's DRAM chips using that technology has the largest die size among all the manufactures at the same node (say 70 nm), meaning fewer chips can be produced from a single wafer.




RE: Author is misleading
By MikeMurphy on 1/25/2009 3:49:57 PM , Rating: 2
Qimonda's Aeneon line offers a 2x4gb product providing 8GB in dual channel mode.

If their technology is so old why isn't anyone else offering such high density chips?

Anyways, here's hoping for a sale on that 2x4gb kit :)


RE: Author is misleading
By bullsfusion on 1/25/2009 4:58:44 PM , Rating: 2
I was talking about the die size which decides the number of bits produced from every wafer, not the parts after packaging. You could put multiple dies into one package to achieve high density modules. We started shipping memory kits with even higher density using 1Gb dies for high end servers from one of our customers a few years ago.


RE: Author is misleading
By Jansen (blog) on 1/26/2009 4:03:56 PM , Rating: 2
quote:
However, Qimonda has had trouble in transitioning to lower process geometries due to technical hurdles in this esoteric technology.


How will this affect the ATI Radeon series?
By lakrids on 1/25/2009 12:03:55 AM , Rating: 2
ATI is depending on gddr5 from them aren't they?
....What will happen to ATI now?




RE: How will this affect the ATI Radeon series?
By Totally on 1/25/2009 1:52:57 AM , Rating: 2
nothing really, just switch suppliers I know they use hynix already.


By Omega215D on 1/25/2009 5:40:23 AM , Rating: 2
Samsung also comes to mind. One of my cards have samsung RAM chips.


Coolness factor for the bottem line?
By icanhascpu on 1/23/2009 10:21:50 PM , Rating: 3
Uhh what?

If that were a real indication of the bottem line, then why dont I see any called Megatronium in a Decepticonium series?




By jtemplin on 1/25/2009 3:24:54 PM , Rating: 1
quote:
It also sounded much cooler.


Number one reason to declare bankruptcy...


By Gul Westfale on 1/23/2009 11:10:51 PM , Rating: 3
bankrott. pronounced bunk-rott. usually said with a smile to indicate schadenfreude. :)




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