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Infineon: perspective from ProMOS and Nanya

The Taiwanese company ProMOS Technologies announced the final cancellation of the licensing agreement with the German manufacturer Infineon Technologies, but retained the right to use the technology obtained from its former partner.

According to a ProMOS spokesman, Infineon refused to reserve the capacity of the Taiwanese company, and at the end of 2021, it gave up ProMOS shares, but did not terminate the technology transfer agreement. Despite the twists and turns with the withdrawal and subsequent reinstatement of representatives of the German side in the board of directors of the Taiwanese company, as well as litigation, ProMOS is still ready to negotiate. Although the timing of bilateral negotiations in the future has not been determined, the leadership of the Taiwanese memory manufacturer is ready to meet with the leadership of the German company at the end of March.

Moreover, ProMOS is still ready to provide part of the capacity of Infineon, agrees to negotiate the sale of a part of its shares to the German side and the transfer of technology. Even after the destruction of the partnership.

As for the issues of cooperation between ProMOS and Elpida Memory, it is noted that the heads of the companies “hold frequent meetings, but the final decision has not yet been made.”.

By the way, about partnership. Nanya Technology said its partnership with Infineon Technologies will force the company to increase its R&D spending as the DRAM market is fiercely competitive.

Most memory manufacturers are forced to invest about $ 300 million annually in research., what only companies with an annual income of $ 2.5 billion can afford. up to $ 3 billion. Accordingly, being present in the market “independently”, Nanya could not afford such expenses. Now such amounts can become a reality (Nanya’s annual income in 2021 was about $ 850 million.). The combined market share of Nanya and Infineon will be about 20%.

According to Nanya executives, DRAM manufacturers will continue to consolidate and only 4-5 players will remain on the market by 2021. Currently, the market shares of DRAM manufacturers look something like this:

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