Qimonda invests $525M on chip facilities in Asia

Qimonda AG, one of the world's largest DRAM (dynamic RAM) chip makers, plans to invest ,400 million (US$525.3 million) on two chip factories in Asia, the company said Thursday.

Dan Nystedt

Qimonda AG, one of the world's largest DRAM (dynamic RAM) chip makers, plans to invest €400 million (US$525.3 million) on two chip factories in Asia, the company said Thursday.

The German chip maker plans to double the capacity of a memory chip assembly plant in Suzhou, China by adding a second building on its site, at a total investment of €250 million over the next three years.

Construction will begin this month. The company will hire about 1,300 more people to staff the new factory building.

Qimonda will also invest €150 million over five years on a DRAM module assembly plant in Johor, Malaysia, near the border to Singapore, the company said in a statement.

Construction is planned for the middle of this year, with production expected to commence in 2008. The new site will require 3,000 employees.