Qimonda, a unit of chipmaker Infineon, filed for bankruptcy today "after failing to secure sufficient financing following a slide in memory-chip prices this year." The company has 12,200 employees.
In an e-mailed statement, Qimonda stated "The insolvency petition is the result of the massive drop in price in the DRAM industry and dramatically decreased access to financing on (sic) the capital markets."
Where will this ripple to: one could list Powerchip Semiconductor and Winond Electronics, Taiwan's largest and fifth-largest memory-chip makers, respectively.
The lack of financing should come as no surprise - as we commented recently, there is virtually no financing available to distressed companies. With GE Capital, traditionally the biggest Debtor In Possession lender, on the verge of saying "Enough", it is likely to only get much, much worse...
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