WishX Posted July 31, 2002 Share Posted July 31, 2002 AMD, Fujitsu and Saifun to Collaborate Wed Jul 31, 4:54 AM ET http://news.yahoo.com/news?tmpl=story2&cid...dm_fujitsu_dc_1 NEW YORK (Reuters) - Advanced Micro Devices , Fujitsu Ltd and Israeli-based Saifun Semiconductors Ltd. said on Wednesday they agreed to collaborate and cross-license patents and technology. As part of the collaboration, U.S.-based AMD and Japan-based Fujitsu will take an equity stake in privately-held Saifun and settle any outstanding litigation, according to a press release. No other details were available in the release. Israeli-based financial newspaper Globes reported on Tuesday that AMD would invest $50 million in Saifun and take a 10 percent stake. The deal was made possible after Saifun agreed to drop litigation against AMD, Globes reported. The newspaper said Saifun had accused AMD of infringing on its MirrorBIt flash memory patent. Saifun chief operating officer Kobi Rozengarten declined to comment on the newspaper reports and he would not disclose the financial aspects of the deal. AMD was not immediately available for comment. Israel's Ha'aretz newspaper said on Wednesday AMD and Fujitsu would pay Saifun $25 million for the license to use its Flash Memory. In addition, the two companies will invest $25 million in Saifun -- AMD $15 million and Fujitsu $10 million. Fujitsu and AMD will get 4.5 percent of Saifun, the newspaper said. The newspaper also said AMD and Fujitsu would pay Saifun royalties over the next 10 years, generating revenues of about $100 million. Rozengarten told Reuters the contract with AMD and Fujitsu has three parts, with the license being the main part. They will pay royalties, he said. "We will also collaborate on the technology in the same area," he said. "The equity which the Israeli newspapers refer to as the first item, though it's very important and a sign of commitment, is not the main part," he said. "We believe it's a win-win deal." Rozengarten said the deal with AMD and Fujitsu would not conflict with its collaboration with Infineon . Saifun and Germany's Infineon have a joint company in Germany and Israel focusing on data flash and they are currently shipping samples to key customers. Infineon has also invested in Saifun in the past, though Rozengarten would not elaborate. Rozengarten also said Saifun planned to go public but not in the near term. "An IPO is not at the top of our list of priorities," he said. AMD shares closed at $8.45 in New York on Tuesday. Link to comment Share on other sites More sharing options...
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