Elpida Memory and Numonyx announced they have signed a letter of intent (LOI) to enter into a foundry agreement for Numonyx to utilize Elpida's 12-inch wafer fab to manufacture NOR flash memory.

The companies will begin technology transfer and development activities for Elpida's Hiroshima plant soon, with initial production expected in the middle of 2009. Elpida will allocate a portion of its impressive capacity of approximately 120,000 wafers per month to Numonyx for the production of both 65nm NOR flash products as well as the upcoming 45nm process technology.

This agreement allows Numonyx to boost its ability to meet demand for its products, especially as it increases its focus on the embedded NOR market segment. The deal also allows Elpida to utilize its fab equipment efficiently and longer by engaging in both foundry and DRAM manufacturing using different generation technologies.

Numonyx's existing 8-inch wafer facilities will continue to provide ample supply to many of its current customers that do not want to incur costs and complexities associated with re-qualifying its parts.

By: DocMemory
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