Chips are up for Acer

Acer Semiconductor has signed a five year cross-technology deal with Silicon Storage Technology (SST). Acer will manufacture SST products and SST will licence its patented SuperFlash technology to Acer. Manufacturing is not scheduled to begin until year 2000. SST will get royalty payments from Acer, who in return will be grateful for the revenue injection, the announcement coming only days after Acer said was postponing its planned share issue because of "unfavourable economic conditions." Acer’s semiconductor business was highlighted as a major drain on Acer’s resources. Stan Shih, Acer chairman and CEO, said: "We expect to benefit from this strategic relationship both as a supplier of wafer to SST and in our joint efforts to develop products that are uniquely suited for ACER's advanced system products." ®