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Qimonda finalizes sale of Inotera stake to Micron

Posted: 28 Nov 2008 ?? ?Print Version ?Bookmark and Share

Keywords:stake Inotera? finalize sale?

Qimonda AG has completed the sale of its Inotera stake to Micron and the receipt of the second tranche of US$ 200 million in cash. Last October, the two companies signed an agreement whereby Micron agreed to purchase Qimonda's shares in Inotera for US$ 400 million in cash in two installments.

According to the agreement, Qimonda's purchase of Inotera's output capacity is to be ramped down over an eight-month period following the closing. In addition, with the completion of the sale transaction, the development agreement between Qimonda and Nanya regarding the 58nm trench technology has been terminated. Qimonda is currently converting from its 75nm technology directly to its proprietary 65nm Buried Wordline technology and plans to introduce a next generation 46nm Buried Wordline technology mid calendar year 2009.

"The sale of our stake in Inotera is an important component of our restructuring program, providing us with a cash influx to support our restructuring and productivity improvement measures," said Kin Wah Loh, CEO of Qimonda. "In addition, the ramp down of Inotera reduces exposure to the PC market and related cash burn."

In October, Qimonda announced a global restructuring and cost reduction program to reposition the company by concentrating on core strengths in Buried Wordline technology as well as infrastructure and graphics products.

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