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Infineon beats up Mosel-Vitelic

'Repeated breach of contract'

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Infineon is cancelling its shareholder's agreement ProMOS DRAM foundry JV, citing "repeated material breach of contract" by Mosel-Vitelic, its Taiwanese partner.

So what is this alleged material breach? Infineon ain't telling, but it says it gave prior warning to Mosel-Vitelic. (This EE Times piece offers some theories over the fall-out.)

Under the terms of the shareholder agreement, ProMOS has to find 10 per cent of the business for the foundry , while Infineon (38 per cent)and Mosel-Vitelic (52 per cent) had to make up the rest According to reports, overspill from Infineon accounted for much of ProMOS' allocation. ProMOS also relies on Infineon IP to produce memory chips. With the shareholder agreement terminated, Infineon no longer has to commit to volume levels. Luckily for ProMOS, Infineon says it will renegotiate a new product supply contract.

Infineon says it remains committed to ProMOS: the same cannot be said to working with Mosel-Vitelic. ®

Infineon press release

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