Chip manufacturer Infineon has said today that it will fight legal action taken against it by its former memory chip unit, Qimonda.
An Infineon spokesperson said the company is “firmly convinced” that it has done nothing wrong and that it would defend against the lawsuit taken by Qimonda, which split from Infineon in 2006.
Qimonda filed for insolvency in 2009 after chip prices fell drastically and the company failed to secure a $325 million bailout deal that was being negotiated. As part the proposed deal Infineon was to offer $75 million, but talks fell through at the last minute.
Qimonda appears to be blaming Infineon on its collapse, claiming that Infineon should be providing the difference between its equity capital and its insolvency assets.
Infineon disagrees that it should have to foot the bill, stating that Qimonda formed a shell company in 2004 before splitting from Infineon in 2006 and that capital issues were reviewed and addressed at those times. It also said that a re-examination was deemed unneccessary by all parties.
It has not been revealed exactly how much Qimonda is looking for, but Infineon suggested that the case could work to Qimonda’s disfavour, with the company required to pay legal fees if it loses. Infineon suggested it would not seek additional damages, however.