Cypress, NVE Ink Technology Exchange Pact
Online staff -- EDN, April 24, 2002
Cypress Semiconductor Corp. and NVE Corp. today said they have signed a technology exchange agreement. Cypress has also made an equity investment in the Eden Praire, Minn.-based company.
As part of the agreement, each company will gain access to the other’s magnetic random-access memory (MRAM) IP. Cypress will also work with NVE in defending its IP rights under certain circumstances. Cypress has also signed on to manufacture wafers for NVE.
Cypress has invested $6.2 million in NVE in exchange for about 3.4 million shares of common stock. The San Jose-based company also has the option to buy up to 2 million additional shares for $3 per share. A Cypress executive will also be named to NVE’s board of directors.
"NVE’s technology will help speed our development of next-generation electronic components," said T. J. Rodgers, Cypress president and CEO, in a statement.
Unlike conventional DRAM and SRAM memories that lose data when power is off, MRAM uses spintronic magnetic materials that retain data when power is removed. Cypress said that Semico Research Corp. is forecasting that MRAM has the potential to revolutionize the $48 billion semiconductor memory market, with several companies planning commercial MRAM production by 2004.
"This alliance solidifies our capital structure, gives us a powerful MRAM ally and augments our product manufacturing capability," Daniel A. Baker, NVE president and CEO, said in a statement.
NVE also has technology agreements with Agilent Technologies, Motorola and Honeywell International.
