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ProMOS Technologies decided to end talks about potential partnership with Elpida Memory of Japan and sign another memorandum of understanding with troubled memory maker Hynix Semiconductor.

ProMOS Technologies has been looking for fabrication process and investments partner since the first half of this year, when it became independent from Taiwan’s Mosel Vitelic and Germany’s Infineon Technology. At first, the firm signed MOU with Elpida Memory covering joint development of next-generation process technologies as well as certain arrangements for product purchase and supply, however, this week abandoned this one to sign another MOU with Hynix Semiconductor.

The memorandum of understanding between Taiwanese and Korean memory companies proposes to initiate a long term strategic alliance in technology licensing, foundry service and development of new generation memory production processes. The new alliance may represent nearly 25% of the world DRAM output.

According to the MOU, Hynix licenses to ProMOS certain proprietary technologies for DRAM stack process, while ProMOS offers Hynix its 300mm fab capacity. Hynix and ProMOS also plan to collaborate in the development of next-generation process technologies.

Elpida was considering various options including seeking a new partner or increasing ties with existing partners to help its business expansion, and said the scrapping of the ProMOS alliance would not have any impact on supply. ProMOS said it did not exclude the possibility that other cooperative opportunities may arise with Elpida in the future, according to Reuters.

“We had been talking with ProMOS based on a basic agreement signed in May, but we could not finalise the deal” Elpida, said.

Both companies agreed they would not disclose the reason for the breakdown in talks.

ProMOS also has plans on building its second 300mm DRAM fab in Taiwan and integrate those additional capacities into its existing 200mm and 300mm fabs. The company is currently seeking for investors for this project, though, there is no information whether Hynix is in a position to offer funds for ProMOS’ expansion of manufacturing facilities.

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