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Insolvency proceedings start for Qimonda as workforce shifts to ‘transfer’ company
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Insolvency proceedings have now commenced in Munich, Germany for DRAM
manufacturer Qimonda AG. Production in Dresden has been put on hold and
a designated number of employees have taken pay cuts and been moved to
a newly formed ‘transfer’ company as negotiations continue to find an
‘anchor’ investor in the ‘new’ Qimonda.
About 600 employees in Munich and about 1,850 employees in Dresden (84% of Munich-based and 93% of Dresden employees) have accepted pay cuts as part of joining the transfer company. The wage cuts are between 30% and 37%. Approximately 340 employees in Munich and about 575 employees in Dresden continue to work directly on operating the business.
The formation of the transfer company was intended to preserve front-end and back-end manufacturing operations in Germany and Portugal and administration in Munich to keep hopes of a new investor alive while insolvency proceedings continued.
However, should the company fail to attract new anchor investment, the most likely outcome is full liquidation and all jobs being lost.
In the meantime, Qimonda said it had plans to continue development as best it can on its 46nm Buried Wordline technology.