Qimonda AG, a leading supplier of memory chips, recently announced its plans to strengthen its footprint in the Asian market by building its first fully-owned 300mm manufacturing facility on the continent.

Depending on the growth and development of the world semiconductor market, Qimonda plans to invest approximately Euro 2 billion in the site over the next five years. The new fab is planned to be built in Singapore and with 20,000sqm clean room space is expected to add 60,000 wafer starts per month to Qimonda’s overall front-end capacity when fully ramped.

“Our investment in Singapore is a major step to expand our regional presence in the Asian market. We are addressing several strategic objectives at once,” said Kin Wah Loh, President and CEO of Qimonda. “We are responding to the fast growing DRAM market and are moving closer to our customers in Asia. In addition, we can benefit from local competitive cost structures and manufacturing know-how and finally further reduce our exposure to exchange rate fluctuations compared to the US-Dollar. With this investment we are using our financial strength and entrepreneurial flexibility to enable us to capture opportunities in this rapidly developing market whenever they arise.”

The planned investment of approximately Euro 2 billion in the new fab in Singapore is planned to span the next five years. Qimonda intends to finance the initial capital expenditures for the building out of its own cash flow and will utilize project-based financing thereafter. Commencement of construction is scheduled for the end of calendar year 2007, with production expected to start in 2009. When running at full capacity, the new fab will have more than 1,500 employees.

Qimonda AG is a leading global supplier of DRAM memory products. Following the carve-out from Infineon Technologies AG on May 1, 2006, Qimonda went public at the New York Stock Exchange on August 9, 2006. The company generated net sales of EUR 3.81 billion in its 2006 financial year and has approximately 12,000 employees worldwide.

Qimonda has access to five 300mm manufacturing sites on three continents and operates five major R&D facilities, including its lead R&D center in Dresden. The company is a leading supplier of DRAM products to PC and server manufacturers and is increasingly focusing on products for graphics, mobile and consumer applications as well using its power saving trench technology.

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