Cypress enters agreement to sell PSRAM business to Taiwan’s ESMT
Elite Semiconductor Memory Technology Inc., Taiwan (ESMT) and Cypress Semiconductor Corp. have announced a Technology Transfer Agreement under which ESMT will acquire Cypress's 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's current PSRAM customer base.
"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," said Hsing-Hai Chen, Chairman at ESMT.
"Looking forward, we believe mobile communications will provide most of the driving force behind the consumer electronic market, and that low-power memory chips are one of the key components in this segment," H.H.Chen added.
