German chip maker Infineon has decided it's not going to participate in a bail-out of its former memory chip business Qimonda.

The German federal state of Saxony had proposed giving Qimonda a loan of 150 million euros if Infineon would invest the same amount into the flailing company. Infineon stated whilst it appreciated Saxony's offer, the requirement of flushing 150 million euros of its own money away exceeded Infineons possibilities by a wide margin.

Infineon CEO Peter Bauer added his heart was heavy because Saxony didn't listen to his plans. Bauer wants the state of Saxony to buy a substantial package of Qimonda shares from Infineon and see tax payer's money come to the ultimate rescue. Infineon however did say it would give Qimonda a loan if brave Saxony came to the rescue and buy its shares. 

Infineon still holds 77,5% of all outstanding shares in Qimonda and is desperately looking for a buyer before Qimonda goes bankrupt and drags Infineon's balance sheets into cthonic depths.Qimonda is currently reeling from all the same problems its rivals are, namely sinking prices for DRAM chips. According to DRAM Exchange, the only company making profits in the arena is Samsung, which garnered a market sahre of 23,9% in the third quarter. Qimonda came in fifth with a share of 9,6%.

Qimonda currently employs 4600 people in Germany, 3200 work in the memory chip makers main site in Dresden, Germany. Dresden, located in the federal state of Saxony, is also home to AMD and an assorted lot of microelectronics firms. X