Infineon has asked the German government to guarantee €500m ($696m) in loans as it faces a looming deadline on its debt maturing.

People close to the situation said the chipmaker had asked for €500m in loan guarantees from a state fund set up to help industry deal with the global economic crisis. Infineon declined to comment. Infineon is racing to secure €900m in follow-on financing for loans and bonds coming due by next summer.