Hynix, ProMOS Ink Memory Deal

Online staff -- Electronic News, 2/19/2004

Hynix Semiconductor Inc. and ProMOS Technologies Inc. today announced a long-term strategic alliance in technology licensing, foundry service and development of new generation memory production processes.

According to struggling memory player Hynix, the deal will represent nearly one quarter of the world's DRAM output.

Terms call for ProMOS to license certain proprietary Hynix technology for DRAM stack process, while ProMOS offers to Hynix its 300mm fab capacity.

The agreement represents a twisted chain of events for the two companies. Infineon, once a parent company of ProMOS, has filed several suits against Hynix alleging unfair business practices. The German company also cut off ProMOS after a lengthy dispute over its standing with the foundry, concerning, among other things, board seats.

“Hynix has been one of the world’s first-rate providers of DRAM. Its success comes from outstanding production efficiency, sustainable R & D investment, and a highly dedicated management team with a clear focus on semiconductors,” said Min-liang Chen, president of ProMOS, in a statement. “The alliance forged between Hynix and ProMOS advances both parties into a new phase of viable long-term growth. We envision enormous benefits to both our clients and ourselves.”

Hynix and ProMOS also plan to collaborate in the development of next-generation process technologies, they said, adding that the door has been left open to the possibility of more mutually beneficial projects in the future.