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Infineon, Promos form DRAM license pact

Posted: 12 Nov 2004 ?? ?Print Version ?Bookmark and Share

Keywords:infineon technologies? promos technologies? dram?

Infineon Technologies AG and Promos Technologies Inc. have reached into an agreement regarding Promos' license of Infineon's DRAM technologies transferred to Promos. The S17 to S12 license agreement of 2000, as now amended, remains in effect. Promos has been, and continues in the future to be, licensed to produce and sell products using the technologies transferred from Infineon, and to develop its own processes and products.

As full consideration for the ongoing license for use of Infineon's technologies, ProMOS will pay Infineon $156 million in four installments over a period through April 30, 2006, of which Infineon's accrued payable for DRAM products purchased from Promos of $36 million will be offset.

Disagreements which previously arose as to the license granted to Promos are now no longer relevant. All claims including litigations, arbitration or other complaints raised by both sides are being withdrawn. Infineon will recognize the relevant license income in the three months ending December 31, 2004.

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