MUNICH, Germany — Memory chip maker Qimonda is preparing a potential technological breakthrough for non-volatile memories. In the meantime, Infineon seems to be poised to aid its ailing DRAM subsidiary. Talks are about a double-digit million euro amount.

According to Japanese online publication Nikkei Electronics, Qimonda will unveil a non-volatile memory technology based on allotropes of carbon at the International Electronic Devices Meeting (IEDM 2008) in San Francisco. The technology would open the door to further shrink non-volatile memory cells, leading to much higher densities than competing phase-change memory technology. The publication quotes an unnamed Qimonda source saying that the carbon allotropes feature molecular sizes as small as two to three nanometers while phase-change memories cannot be smaller than 30 to 40 nanometers.

Qimonda declined to comment.

In the meantime, the conflict about state aid for the loss-making DRAM manufacturer continues. Infineon recently had been criticized for its obdurate position with respect to its loss-making subsidiary Qimonda. According to a report of German weekly Focus, Infineon had asked for a state aid of €500 million (about $660 million) for Qimonda.. At the same time, Infineon CEO Peter Bauer repeatedly made clear that the parent company, itself hit hard by the market downturn, could not help the memory chip manufacturer which is in serious financial trouble against the background of the ongoing DRAM price decline.

Now Infineon appears to have changed its mind. According to Focus, the chip vendor would be ready to contribute €50 million to save Qimonda.

A company spokesperson declined to elaborate. "We do not comment on ongoing negotiations," he said. Nevertheless, sources close to the company hinted that Infineon might not let fall its subsidiary of which it still owns some 77 percent of the shares.

According to Focus, a study from consultancies PricewaterhouseCoopers and Arthur D. Little sees good chances for Qimonda to survive. The study certifies Qimonda a technological edge over its competition, in particular in the graphics and server markets.