Financing Package for Qimonda Arranged
Neubiberg, Germany – December 21, 2008 – The German Free State of Saxony, Qimonda AG (NYSE: QI) and Infineon Technologies AG (FSE/NYSE: IFX) today jointly announced a financing package for Qimonda. The package includes a Euro 150 million loan from the German Free State of Saxony, a Euro 100 million loan from a financial institution in Portugal and a Euro 75 million loan from Infineon. Infineon currently holds a 77.5 percent equity interest in Qimonda.
“I am highly pleased, that with the generous support of the governments of the Free State of Saxony, the Federal Republic of Germany and the State of Portugal, we jointly succeeded in tying up a package which provides Qimonda with the opportunity to shape its future. This is good news for the employees of our subsidiary Qimonda before the christmas season,“ says Peter Bauer, CEO of Infineon Technologies AG.
In spite of the extremely difficult situation of the world market and the semiconductor industry, Infineon intends to contribute to the package with a loan of Euro 75 million. This sum represents the maximum contribution Infineon can possibly make in light of the economic surroundings.
In addition to the financing package announced today, Qimonda expects to receive guarantees totaling Euro 280 million from the Federal Government of Germany and the Free State of Saxony. Based on such guarantees, Qimonda is already in advanced negotiations regarding additional bank financing totaling Euro 150 million.
The availability of the total financing package is contingent upon successful completion of the relevant national and European approval procedures as well as on the final agreement on the detailed terms and conditions of the various financings. The overall package is intended to given Qimonda the chance to stabilize the company and to introduce Buried Wordline Technology into volume production.
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide. With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Infineon currently holds a 77.5 percent equity interest in Qimonda AG, a leading supplier of DRAM memory products. Qimonda is separately listed on the New York Stock Exchange under the ticker symbol “QI”.