Microsoft have struck a deal with the newly formed subsidiary of Infineon Technologies, Qimonda, that sees the German based company becoming the preferred supplier of 44.8Gbit/sec. graphics RAM for the Xbox 360

The volume of the order for the 512-MB GDDR3 RAM has not been confirmed, but the press release states that the company will supply a 'significant' share to the estimated 10 milliion units that Microsoft have forecasted for the rest of the year.

“Qimonda's capabilities to design and deliver highly advanced graphics memory products in large volumes were decisive factors in our selection of it as a strategic partner for the Xbox 360,” said Todd Holmdahl, VP of gaming and Xbox platform group at Microsoft.

The financial details of the deal have been kept firmly behind closed doors

Qimonda is scheduled to be floated on the New York Stock Exchange shortly and the news should give them a fantastic start in the stock markets.