Spansion, a leading maker of flash memory, and Qimonda, a manufacturer and supplier of dynamic random access memory (DRAM), said on Wednesday they had signed an agreement under which the companies will create multi-chip packages (MCPs) for various devices which will include flash memory as well as DRAM chips.

Under the terms of the agreement, Qimonda will provide Spansion with its low-power PSRAM, or CellularRAMs as Qimonda calls them, and mobile-RAM devices in known good die (KGD) form, which Spansion will use in MCP solutions. The term KGD means that Qimonda performs all functional and quality testing of the dies on the finished wafer, which are then stacked with Spansion Flash memory in a compact MCP. Such multi-chip packages can be used in mobile devices.

Qimonda CellularRAM is a pseudo-SRAM (PSRAM) device that provides high-density, high-bandwidth and power-efficient memory solutions at a very attractive cost/bit ratio compared to conventional SRAM. Mobile-RAM products are an ultra-low-power DRAM, which can reduce power consumption by up to 80% compared to equivalent density standard SDRAM. When combined with Spansion MirrorBit NOR and ORNAND Flash memory, the MCP solutions address the fast-growing memory demand in space-constrained mobile handsets.

MCP solutions with 64Mb and 128Mb CellularRAM are already available from Spansion and are shipping in mass production. Products featuring higher storage densities and products based on double data rate (DDR) Mobile-RAM are planned for later in 2007.

The companies plan to align product roadmaps, in particular providing Qimonda PSRAM (Pseudo SRAM) devices specified for certain Spansion Flash memory, which is expected to result in improved yields and cost-effective solutions that can bring more efficiency to handset OEMs.

“This strategic supply agreement creates a powerful combination between a world- leading manufacturer of f;ash memory solutions and Qimonda’s proven, ultra-low- power product families,“ said Ayad Abul-Ella, vice president of the mobile and consumer business unit at Qimonda. “By delivering KGDs for assembly in a variety of total densities and interfaces, we are contributing to the development of a compelling family of MCP devices for the mobile market.”