Infineon Technologies and Kingston Technology announced that they have signed a Long-Term Agreement (LTA) and a non-binding Memorandum of Understanding (MoU). Under the terms of the agreement, Infineon will sell memory chips to its Fountain Valley, California-based partner, while the latter will help Infineon with back-end engineering and memory validation.

For the next five years Infineon will supply Kingston with DRAM components, with potential cumulative revenue estimated at up to $2.5 billion. Kingston will provide engineering services to Infineon in the form of component and module validation at its fully owned subsidiary Advanced Validation Labs, an Intel approved test lab that can support OEM test requirements for acceptance of new die shrinks and module designs. These services will help Infineon to secure access to new computer systems and accelerate qualification and time-to-market of Infineon DRAM products.

Kingston, who is one of the world’s largest memory module manufacturer, according to the statement, has its fabrications plants in China, Malaysia, Taiwan, and the Unites States. Infineon is the world’s number four memory chips vendor with big ambitions. Infineon’s 2002 revenues are estimated at $1.981 billion.