Dresden, Germany - Struggling chipmaker Qimonda is to receive a major cash injection to help keep it afloat, officials said Sunday in the German state where the company has its main production plant. The Infineon subsidiary will receive 325 million euros (455 million dollars), said Thomas Jurk, minister of economics in the east German state of Saxony.
Saxony will contribute 150 million euros and Infineon 75 million euros, with the remainder coming from Portugal where Qimonda has a plant near Porto.
The government in Saxony had been in negotiations with Infineon to Save Qimonda, which has suffered from a dramatic fall in prices for computer chips.
Last month, the company warned it might face insolvency if support was not forthcoming.
