Winbond Electronics Corporation Announces Signing of Definitive Agreement with Infineon Technologies AG for Licensing 0.11-Micron DRAM Technology

(Taipei News) Winbond Electronics Corporation today announced the signing of a definitive agreement with Infineon Technologies AG for licencing 0.11-micron DRAM technology. The signing of the formal contract marks the first technology agreement between the two companies. Under the terms of the agreement, Winbond will manufacture commodity DRAMs for Infineon using 0.11-micron DRAM technology. 

The agreement, which was signed by Dr. C.C. Chang, president of Winbond Electronics Corporation; and Dr. Harald Eggers, general manager of Memory Products, Infineon; calls for the program to commence immediately. From May 2002, Infineon will begin transferring technology to Winbond's Hsinchu facilities. Key equipment for 0.11-micron manufacturing are scheduled to be installed in Winbond's fab facilities in the fourth quarter of 2002. Pilot wafer start is expected to begin in early January 2003, with first silicon expected shortly thereafter. Both companies anticipate manufacturing products using 0.11-micron process technology within a year; May 2003.During this period, Winbond's engineers will be trained in Infineon, Germany, while Infineon engineers will provide initial support for manufacturing at Winbond's plant in Taiwan.

"We are pleased that our first technology collaboration with Infineon has proceeded smoothly," noted C.C. Chang. "Winbond's on-going dedication to aggressively pursuing technology advancement is reflected in both the signing of this agreement and our milestone schedule calling for product production within one year's time." As part of the agreement, Winbond will reserve a portion of its manufacturing capacity in its 8-inch fabs for production of commodity DRAM for Infineon. The Company will also reserve a share of its own fab capacity for manufacturing Winbond's brand of advanced specialty DRAM. This strategy supports Winbond's technology initiative of focusing on trench technology development while transitioning the Company's memory product portfolio from providing commodity DRAM to providing niche DRAM for specialty applications. In addition, the collaboration enables Winbond to fully leverage its flexible manufacturing expertise and it's long-term return on investment for its 8-inch fabs located in the Hsinchu Science-Based Park, Taiwan. Winbond is dedicated to offering customers high-quality and innovative IC products by providing winning system solutions. As part of that strategy, Winbond plans to continue to its efforts in working with technology partners to further migrate its technology to the 0.11 micron generation. The Company also expects to expand its strategic alliance efforts, further advanced IC design efforts, and improve the corporation's world class manufacturing expertise---- all part of increasing Winbond's competitiveness in the global market for ICs and IC related industries. 

About Winbond 
Winbond Electronics Corporation was founded in 1987 and is based in Hsinchu Science-Based Park, Taiwan. It has since become the largest branded IC Company in Taiwan, offering a broad range of micro controller-based consumer IC, PC and peripheral ICs, network access IC and memory ICs. Winbond is a market leader in PC I/O controllers and speech synthesizers in Taiwan and East Asia. Currently, Winbond has four wafer fabs in operation and utilizes process technology down to 0.13 micron. With more than 4,050 employees worldwide, the Company has subsidiaries in San Jose, USA; Japan; Hong Kong and Shanghai, China. Further information is available at: www.winbond.com.

About Infineon 
Infineon Technologies AG, Munich, Germany, offers semiconductor and customized solutions for applications in the wired and wireless communications markets, for security systems and smart cards, for the automotive and industrial sectors, as well as memory products. With a global presence, Infineon operates in the U.S. from San Jose, CA; in the Asia-Pacific region from Singapore; and in Japan from Tokyo. In the fiscal year 2001 (ending September), the company achieved sales of Euro 5.67 billion with about 33,800 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

    Wilson Wen
    Vice President of Administrative Center
News Liaison
    Mike Liu
    Deputy Director

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