ProMOS, a former joint-venture between Mosel Vitelic and Infineon Technology, has reportedly decided to acquire 50% share of its ex-co-founder Taiwan-based Mosel Vitelic. The deal is expected to be closed already this month.

According to a report from DigiTimes citing a statement from the DRAM manufacturer, ProMOS Technologies will acquire a 50% share of Mosel Vitelic and full ownership of USA-based United Memories – Mosel memory IC design affiliate – as well as Mosel’s IP patents relating to memory chips and flash chip production process and DRAM product rights.

ProMOS had $264 million in account receivables from its former co-founder in November, while the acquisition of the mentioned assets will amount for about $120 million. Mosel Vitalic this year made a decision to quit DRAM business after numerous consecutive years of losses.

The acquisition of Mosel’s flash chip process technology, developed in Mosel’s central lab in the USA, would enable ProMOS to expand its product mix. ProMOS plans to begin producing 0.18 micron, 64Mb NOR flash chips at its 200mm fab in the second half of 2004 and will develop higher density flash chips based on 0.12 micron technology, according to the memory firm.