Electronics Production | January 09, 2009
Suppliers are threatened by Qimonda problems
The fact that the head of the CDU parliamentary party in Saxony Steffen Flath wants to have the government’s rescue plan for Qimonda revised, could have severe consequences on the future of "Silicon Saxony”. Should the rescue plan fail, more than 4500 jobs could be lost.
As a result of a Qimonda-closure up to 4500 supplier jobs alone could be lost, here with small and medium-sized businesses in particular. Around 100 of the 550 suppliers would be directly affected, reports the sz-online. Other companies would reconsider investments in the region, which in turn would weaken the regional economy. Even large research projects would be entirely eliminated. AMD and Qimonda are the only two companies in Dresden that focus on the exploration of new technologies. A possible bankruptcy and closure of Qimonda would also pose drastic consequences for Europe: if the development department should close, Europe would depend on the U.S. and Asia in the future, the report continues.