Kingston Selects Infineon as a Strategic Supplier for Memory Products; Companies Sign Long-Term Agreement Worth US $2.5 Billion
Munich, Germany / Fountain Valley CA, USA December 17, 2002 - Infineon Technologies AG (FSE/NYSE: IFX) and Kingston® Technology Company, Inc., today announced that they have signed a Long-Term Agreement (LTA) and a non-binding Memorandum of Understanding (MoU) to strengthen each companys position in the worldwide memory products market. Under the LTA, Infineon will supply Kingston with leading edge DRAM components, with potential cumulative revenue estimated at up to US $2.5 billion over the next five years.
Infineon and Kingston are expanding their existing longstanding business relationship to improve each companys ability to supply memory components and modules to computer system manufacturers and after market customers. In addition to the LTA, the companies have signed a MoU with the intention for Kingston to provide contract manufacturing and back-end engineering services to Infineon.
The expanded relationship with Kingston enhances our ability to build market share, gain increased production flexibility to meet the requirements of key customers, and control our direct investment in back-end manufacturing capability, said Dr. Harald Eggers, Memory Products Group CEO at Infineon Technologies AG. Kingstons strong market presence and expertise in the engineering and production of modules makes the company an excellent partner in the execution of our business strategy.
Infineon grew to be a key player in the global DRAM industry through a combination of technology leadership and commitment to establishing effective cooperative relationships to meet market requirements, said David Sun, Co-Founder of Kingston. High production yields at competitive cost is the key to continued success for DRAM suppliers, and Infineons commanding lead in 300mm production technology and constant innovation in process technology assures competitive cost position and the ability to meet volume commitments.
Infineon, which is ranked by the market research firm iSuppli as the worlds third largest manufacturer of memory ICs for the second quarter of calendar 2002, will provide Kingston with DRAM from its worldwide network of fabrication plants. Kingston, ranked by market researchers as the world's largest independent memory module manufacturer, designs, assembles, and tests memory modules in its multiple regional manufacturing facilities (China, Malaysia, Taiwan, and the Unites States) for its customers. Kingston will also provide engineering services to Infineon in the form of component and module validation at its fully owned subsidiary Advanced Validation Labs Inc., 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.
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com.
About Kingston Technology Company, Inc.
Kingston Technology Company, Inc. is the worlds largest independent manufacturer of memory products. Kingston operates manufacturing facilities in Malaysia, Taiwan, China and Fountain Valley, Calif., including Payton Technology Corp., Kingstons back-end processing facility supporting memory packaging, test and logistics. With the advent of Payton, Kingston supports all memory processing functions from receipt of wafer to completed module. Kingston serves a network of distributors, OEMs, and retail customers in more than 3,000 locations worldwide. For more information on Kingston, call (800) 337-8410, or go to www.kingston.com.
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