German chipmaker Infineon Technologies is to ask shareholders for permission to raise up to €450 million ($626.6 million) of fresh capital to bolster its liquidity.
The move was a precautionary measure to safeguard its equity base in the long term “in the face of the persistent global financial crisis,” the company said in the invitation to its annual general meeting to be held on February 12.
Infineon last month warned that its already bleak prospects for 2009 may worsen if its memory chip unit Qimonda folds and it fails to cut more costs.
The downbeat comments added to a string of warnings across the chip industry as the global economic downturn forced consumers to cut spending on new computers, cellphones and cars.
Nonetheless, Infineon vowed to contribute €75 million to a rescue package for Qimonda, giving in to pressure from the German state of Saxony, where Qimonda operates a large factory. (Reuters)