Saxony, Qimonda in talks about financial aid

MUNICH, Nov 17 (Reuters) - Germany's state of Saxony and Infineon's (IFXGn.DE) loss-making unit Qimonda QI.N are in talks about a possible rescue plan, a spokesman for Saxony's Economics Ministry said on Monday.

"Talks are being held with great urgency," the spokesman said but declined to elaborate on details.

German daily Financial Times Deutschland reported on Monday, without citing sources, that Qimonda and Saxony were in talks about financial aid of around 300 million euros ($380 million), which could include credit, debt guarantees or a stake purchase.

A company spokesman declined to comment on the report but said Qimonda and the state in eastern Germany were in constant contact. Qimonda runs a production plant in Dresden -- the capital of Saxony.

Qimonda, like its competitors, is struggling with an ongoing slump in prices for dynamic random access memory (DRAM) chips, used mainly in PCs.

Its parent company German chipmaker Infineon, which has been trying to find a buyer for the stake in Qimonda it owns, has said Qimonda cannot expect a cash injection from Infineon.

Infineon carved out its former memory chip unit in 2006 and listed it on the New York Stock Exchange in hopes of cutting its exposure to the volatile memory chip market. (Reporting by Jens Hack; Editing by Hans Peters)