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Court battle goes on between Promos and Infineon


Tuesday, February 11, 2003
Promos Technologies Inc. said Tuesday (February 11, 2003) that a Taiwan court has granted it the right to use process technology from Infineon Technologies AG for making DRAM chips.
A Hsinchu-based court issued the preliminary injunction on February 6, the company said, allowing Promos to, “develop, produce and sell DRAM and other semiconductor products, and ordering Infineon not to interfere with or obstruct such use.”

For months, Promos has been at the heart of a dispute between its parent companies, Infineon Technologies AG of Germany and Taiwanese company Mosel-Vitelic Inc. The companies have been arguing over issues regarding chip pricing and Mosel's use of shares in the joint venture as collateral for bonds.

As the disagreement has worsened it has included Infineon's insistence that contracts with Promos and Mosel include agreement that distribution of Promos products is done through Infineon and Mosel's reluctance to go along with that.

Infineon is trying to pull out of the joint venture and has also said its technology agreement with Promos no longer applies.

Currently, the majority of Promos' wafers are made using 0.14-micron trench capacitor process technology originally supplied by Infineon. Promos was preparing to use a 0.11-micron process technology transferred from Infineon, but no technical cooperation has occurred between the companies since November. Also Promos has said it has developed its own 0.12-micron silicon manufacturing process technology in parallel with working with Infineon, and that it could manufacture on that process without Infineon's permission or co-operation.

Promos said Tuesday (February 11, 2003) that the injunction "protects ProMOS' shipments to customers from undue interruption."

By: DocMemory
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