Qimonda invests $525M on chip facilities in Asia

German company will double the capacity of its memory chip assembly plant in China

Qimonda, one of the world's largest DRAM (dynamic RAM) chip makers, plans to invest €400 million ($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.