In its efforts to reduce DRAM capacity on 200mm wafers at two existing facilities and with 200mm foundry partners, Qimonda has advised that it is discontinuing 200mm foundry production at both Winbond and SMIC by the end of 2007. 

With respect to its 200mm fab in Richmond, Virginia, Qimonda will reduce 200mm wafer starts by 15 percent but will switch the remaining production from the 110nm node to its 80nm process, producing legacy products in the future.

During its last quarterly conference call, Qimonda executives also announced that it had sold the Richmond 200mm tool set for approximately €140 million in a lease-back arrangement with an unidentified partner that also included service and tool upgrades.

At its Dresden site in Germany, Qimonda will discontinue the contract manufacturing of 200mm Qimonda products by Infineon with the last wafers started in February 2008. Qimonda said that Infineon would focus on logic chip production at the two 200mm facilities for various applications such as automotive and communications.

"Qimonda and Infineon are investigating whether the necessary personnel adjustments at Infineon can be effected by a transfer from Infineon Dresden to Qimonda Dresden," explained Helmut Warnecke, Vice President and Managing Director Infineon Dresden. "As we move to adjust capacity, we will make use of the flexibility afforded us by temporary staff and service agreements across the site… Dresden is and will remain an important manufacturing site for Infineon."

Caption: Infineon shares the Dresden site with Qimonda. On the right of the picture are the two 200mm fabs (Butterfly configuration) operated by Infineon with the 300mm fab of Qimonda’s on the far left.