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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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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.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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