Elite Semiconductor Memory Technology Inc. Taiwan (ESMT) and Cypress Semiconductor Corp. have announced a Technology Transfer Agreement under which ESMT will acquire Cypress Pseudo Static Random Access Memory (PSRAM) product line. According to the agreement, Cypress will transfer PSRAM-related intellectual property, photomasks and probe card assets to ESMT, strengthening ESMT's memory product portfolio for handheld devices. Financial terms of the transaction were not disclosed.
Ahmad Chatila, Executive Vice President of Cypress's Memory and Imaging Division, said: "The divestiture of the PSRAM business is consistent with Cypress's new strategic direction." Chatila added that ESMT will continue all delivery and support to Cypress' current PSRAM customer base.
ESMT markets, designs and manufactures specialty memory products for consumer products including DVD players and recorders, LCD flat panel monitors and TVs, portable automotive audio/video systems, MP3 players, settop boxes, and video game systems. The company has been aggressively pursuing the booming mobile phone market in recent years.
"We believe that this transaction will not only boost ESMT's revenue significantly, but that it will also enable the company to quickly cut into the supply chain of major cellular phone makers, since Cypress is one of the world's top-tier PSRAM suppliers," said Hsing-Hai Chen, Chairman at ESMT.
ESMT's existing low power SDRAM product line includes 16, 32, 64 and 128Mb devices for the handheld market. With the PSRAM product transfer from Cypress, ESMT's Mobile RAM product line will expand to cover lower-density, low-power memory products including 2, 4, 8, 16 and 32Mb PSRAM devices.
Combining existing engineering competency and production resources with the acquired Cypress PSRAM products, ESMT will be able to provide handheld device customers a more complete portfolio of memory solutions.
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