Promos hits back at Infineon in DRAM dispute

Taiwanese memory-chip maker Promos Technologies has hit back after Infineon Technologies AG announced Monday it had terminated a technology licensing agreement between the two companies, calling statements made by the German chip maker "misleading" and "ill-intended."

Infineon announced Monday it was terminating the technology license agreement effective immediately. Since Promos relies on technology licensed from Infineon to produce DRAM (dynamic RAM) chips found in PCs, termination of the licensing agreement would force Promos to stop producing memory until it could find an alternate technology supplier.

If Promos, which accounts for as much as 6 percent of global DRAM production, was forced to shut down its production lines the impact on the global memory market could be significant, turning a situation of oversupply into one of a shortage of some memory chips and driving up prices.

Infineon's announcement that it had terminated the licensing agreement came as the Hsinchu District Court in Taiwan Monday issued an injunction to reinstate two Infineon employees that had been "illegally" removed from their positions at Promos earlier this month, the German chip maker said.

The two Infineon employees, Michael Buckermann and Angela Shih, had been removed from their posts, as a member of Promos' board of directors and supervisor at the company respectively, at a shareholder meeting on Jan. 10, Infineon said. The injunction reinstated them to their former posts effective immediately, it said.

In a statement issued Tuesday, Promos called Infineon's announcement of the termination of the licensing agreement and the court's injunction a "media blitz" that was "misleading" and "ill-intended."

Promos noted that the Hsinchu District Court injunction to reinstate Buckermann and Shih to their positions was provisional and said Infineon had been required to post a bond of NT$70 million (US$2 million) as a condition of the ruling.

The Taiwanese memory maker also took Infineon to task over the termination of the licensing agreement, saying the agreement was still in effect. Infineon had not sent Promos written notice that it was in breach of the licensing agreement, as Infineon had claimed in a statement Monday, it said. That notice, and a 60-day period that would allow Promos to correct any breach, is a precondition for termination of the technology license, it said.

Promos was established in 1996 as a joint venture between Infineon and Taiwanese DRAM maker Mosel Vitelic Inc. Bad blood has been building between the two partners since last year, when Infineon announced plans to sell off its shares in Promos and said Mosel had repeatedly violated the terms of the joint venture agreement.

Infineon went a step further in December, announcing it would terminate its production agreement with Promos on Dec. 31, 2002. Prior to that announcement, Infineon had agreed to purchase 48 percent of Promos' DRAM output.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?