Distressed German chip maker says to shut US plant

A Qimonda statement added that production at other sites, notably in the eastern German city of Dresden, would continue "for the time being."

But the group, which declared bankruptcy on January 23, also warned that "if investors cannot be found to finance the continuation of Qimonda's businesses, Qimonda would likely be liquidated."

Earlier on Tuesday, European Union industry commissioner Guenter Verheugen was quoted by the German newspaper Saechsische Zeitung as saying that the EU would not extend aid to Qimonda, which has been losing money for some time.

"No one can save a company that its owner no longer wants to save," Verheugen said.

He referred to the German chip maker Infineon, which owns 77.5 percent of Qimonda, and which has sought to turn the company around with the help of public funds.

An attempt by the German state of Saxony along with Infineon and Portugal, where a large Qimonda site is located, to rescue the company failed to come up with a solution.

Saxony had appealed to the EU for aid.

Qimonda has posted losses totalling several billion euros (dollars) over several quarters owing to the collapse of prices for computer memory chips.

The company employs around 3,200 workers in Dresden, the capital of Saxony.