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Spansion Extends OEM Agreement with SMIC

PR Newswire Asia, 5/16/11

Chinese semiconductor foundry Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI, 0981.HK) and U.S.-based Flash memory provider Spansion have announced that SMIC will extend its current foundry arrangement to expand 65nm wafer OEM production capacity and include the manufacture of Spansion's 45nm Flash memory.

As part of the agreement, Spansion will prepay SMIC USD 50 mln against future procurement of wafers. The pre-payment, made in three tranches over the next 12 months, will help SMIC procure equipment for use in Spansion's fabrication processes.

SMIC and Spansion have been working together since 2008, when they began the 65nm MirrorBit Flash memory process installation. Spansion also manufactures its 65nm products at its flagship manufacturing facility in Austin, Texas.

Spansion will begin transferring its 45nm Flash technology this month, with production expected in the first half of 2012.

Editor's Note: For more background on this topic, please see "Spansion Signs OEM Agreement With SMIC," MD 10/24/07 issue, and "Spansion Signs 43nm OEM Agreement with SMIC," MD 08/28/08 issue.

Keywords: flash hardware semiconductor production capacity SMI SMIC Spansion MirrorBit OEM 0981.HK storage contract manufacturer

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