Taiwan DRAM makers face losses from Qimonda

26.01.2009
Two Taiwanese DRAM makers face losses related to German chip giant Qimonda's bankruptcy filing, an example of how the downfall of a one company can ripple across the globe.

Inotera Memories, formerly a joint venture between Qimonda and Taiwan's Nanya Technology, has already decided to give up on the idea of collecting NT$3.4 billion (US$101 million) owed by Qimonda. The Taiwanese company will also stop supplying DRAM chips to Qimonda, Inotera said in a statement to the Taiwan Stock Exchange.

Inotera had been contracted to provide the chips to Qimonda as part of the joint venture. Last year, Micron Technology of the Boise, Idaho, bought out Qimonda's stake in the joint venture.

Taiwan's Winbond Electronics faces the loss of its technology partner and nearly a third of its revenue should Qimonda fail to re-emerge from bankruptcy.

The German memory chip maker owes Winbond NT$950 million in back payments for DRAM, the Taiwanese company said in a statement to the Taiwan Stock Exchange on Saturday. Qimonda also bought nearly a third of Winbond's output each month, chips that Winbond will have to find a new way to sell.

Winbond also relied on Qimonda for DRAM production technology. The two companies signed a deal years ago for Winbond to license Qimonda's production technology in return for cash and chips. The deal helped Qimonda by giving it an inexpensive supply of DRAM to sell globally and enabled it to avoid building expensive new DRAM factories.