Hsinchu District Court approves Infineon's Injunction Applications against ProMOS - Effective Immediately, Infineon Terminates License Agreement with ProMOS
Infineon appreciates the prompt decision by the Hsinchu District Court in this matter and is prepared to take other appropriate actions to defend its rights as a shareholder of ProMOS.
Effective immediately, Infineon terminates the technology license agreement with ProMOS due to a serious breach of contract as ProMOS is supplying all products manufactured with Infineon technology to Mosel Vitelic and due to destruction of the relationship of trust between the contract partners which is inevitably necessary for such a license agreement.
As a result of this termination, ProMOS from now on will not be allowed to manufacture products based on Infineon technology.
Infineon and Mosel Vitelic signed a shareholders agreement for the foundation of the joint venture ProMOS in 1996, which supplied all DRAM products manufactured on the licensed Infineon technology to Infineon. Infineon then supplied Mosel Vitelic with DRAM products. However, there is no more a basis to continue this cooperation because of repeated violations of the shareholders agreement by Mosel Vitelic, the breach of the license agreement by ProMOS and further measures by Mosel Vitelic, which controls the ProMOS board, impairing the partnership.
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.