German chipmaker Qimonda has filed for insolvency at a court in Munich, following months of financial agony.

The memory maker received a €325 million cash injection from Saxony, the German federal government and a Portuguese bank in December. However, this wasn't enough, and Dow Jones reported that the company needed an additional €300 million to survive.

The government of Saxony refused to dump more cash into the company, and German Chancellor Angela Merkel wasn't thrilled about the prospect of spending any more cash on the chipmaker either.

Qimonda currently operates two production facilities, the main factory in Dresden, Germany, and a plant near Porto, Portugal.

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