Promos and Infineon extend licence agreement, end quarrel

November 12, 2004 – Promos Technologies and Infineon Technologies have agreed to extend a technology licensing agreement, ending two years of bitter quarrels between Taiwan’s second-largest memory chipmaker and the German group, one of its founding companies, said Financial Times Ltd.

The deal – effective until April 2006 – ends all litigation, arbitration suits and other claims the two companies have filed against each other and provides Promos with a legal source of technology for the medium term. However, in the long term, the company will have to sign up a new provider of production technology.

Under the agreement announced yesterday, Promos will pay Infineon US$156 million in four instalments until April 2006 for the use of 0.17 micron, 0.14 micron, and 0.11 micron production technology. Promos will also be allowed to develop more advanced technology of its own – up to 0.095 micron – on the basis of technology already transferred by Infineon, according to Albert Lin, a Promos director. Technology beyond that level will be jointly developed with Hynix, the South Korean memory chipmaker, he added.

In 2002, Infineon terminated its shareholding agreement with Mosel and soon afterwards said it was revoking its technology licensing agreement with Promos. Last year, both companies filed several suits against each other. Yesterday, the two companies said the disagreements on the licence granted to Promos were now no longer relevant and all claims filed by both sides were being withdrawn.


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