December 30, 2004 – Parlex Corp. and Infineon Technologies AG have agreed to establish a joint venture company to manufacture and sell advanced technology substrates for secure mobile electronic identification products, said Parlex officials earlier this week. The joint venture will be headquartered in Hong Kong with manufacturing facilities in China.
Under the terms of the agreement, Parlex, a designer and manufacturer of flexible interconnects, will have a 51% equity share with Infineon holding the remaining share. Infineon will pay Parlex $3 million and Parlex will contribute equipment and technology.
Parlex Shanghai Circuit Co. will also provide certain additional services, which will be paid for by the joint venture. In addition to supplying substrates for Infineon’s Flip Chip on Substrate (FCOS) program, the joint venture will offer its products to customers worldwide. It is anticipated that this new entity will be operational in April.