Qimonda focusing production<br>on 300mm capacity

With this move, the share of 300mm capacity will increase to approximately 90 percent by the end of the current financial year. In Richmond/USA, the number of 200mm wafer starts will be reduced by approximately 15 percent, in the context of switching capacities from 110nm to 80nm technology. The remaining 200mm capacity will continued to be used for manufacturing legacy products. At its Dresden site in Germany, Qimonda will discontinue the contract manufacturing of 200mm Qimonda products by Infineon Dresden. The last wafers for Qimonda will enter production at the end of February 2008. Qimonda is in close contact with Infineon to find joint solutions within its agreement with Infineon for a smooth implementation of the required measures and the sharing of costs caused by these measures. Qimonda’s cornerstone activities in Dresden will be its 300mm manufacturing and Research & Development. Infineon in Dresden will focus on logic for various applications such as automotive, communications or security, positioning the site as a competence center for chips sizes from 250 to 90nm. As previously reported, the contract manufacturing of 200mm capacity by Qimonda partners Winbond and SMIC in Asia are already or will be discontinued at the end of 2007.