Demand for memory chips increases DÜSSELDORF, GERMANY – In a move to meet growing demand for memory chips, German semiconductor manufacturer Infineon Technologies AG has decided to ramp up capacity at its U.S. plant to produce advanced DRAM (dynamic RAM) chips on 300 millimeter wafers beginning early next year, the Munich company said Friday.The company will invest $1 billion in the expansion project at its U.S. subsidiary, Infineon Technologies Richmond LP, in Richmond, Virginia, it said.The expansion program, initially planned in 2000, was dropped due to the global economic downturn, which in turn led to a sharp decline in demand for chips. The U.S. expansion, in turn, will allow Infineon to accelerate the shift of production from memory to logic products at its 200 millimeter wafer plant in Dresden, Germany, the company said.The 300 millimeter wafer production line in Richmond will initially produce high-performance, high-density DRAM chips using 110 nanometer technology, with a planned fast transition to 90 nanometer technology, according to Infineon. The plant will continue to produce 200 millimeter wafers.The DRAM chips are used in PCs, servers and other electronic devices. On Thursday, Infineon posted a net profit for the quarter to March 31 of €39 million (US$47.4 million on the last day of the period being reported), compared to a €328 million loss for the same period a year earlier. The company had returned to profitability in the July-September quarter last year after several straight quarters of losses — a period during which the chip-making industry suffered from weak demand for new computers.Last month saw the departure of former Infineon Chief Executive Officer Ulrich Schumacher, who quit after losing a boardroom battle over his leadership style and strategy.REFERENCES: CEO of German chip maker Infineon quits, Mar. 26, 2004 Technology Industry