Apr 25, 2007
SanDisk to Supply NAND Flash and Controllers, Qimonda to Supply Mobile DRAM
MILPITAS, CA and MUNICH, GERMANY, April 25, 2007 - SanDisk Corporation (NASDAQ:SNDK) and Qimonda AG (NYSE:QI) entered into an agreement to jointly develop and manufacture MCPs utilizing SanDisk's NAND flash and controllers and Qimonda's low power mobile DRAM. The collaboration targets
the fast growing need for high capacity, integrated memory solutions of data-intensive mobile applications. This agreement will be executed through a jointly owned company based in Portugal, subject to closing conditions, including regulatory approvals.
The MCPs will be sold by Qimonda and SanDisk through their existing sales channels to mobile handset manufacturers. According to iSuppli, MCPs continue to be the preferred package type for placing embedded memory into mobile handsets. iSuppli projects MCP revenues in the mobile handset market to reach nine billion dollars by 2011 with NAND and mobile DRAM combinations being the vast majority of memory MB shipped in MCPs
"Gaining access to SanDisk's leading-edge flash memory and controller technology and low cost fabs broadens our memory product portfolio," said Kin Wah Loh, Chief Executive Officer at Qimonda. "Qimonda now completes its product offering for handheld consumer devices by offering advanced, high density MCP solutions in addition to a complete portfolio of low power DRAM products. Offering MCPs with advanced mobile DRAM and high capacity NAND Flash will allow Qimonda to optimize the architecture of memory subsystems used in mobile phones to address the growing need of major handset vendors for flexible bandwidth and memory utilization at competitive levels."
"By collaborating with Qimonda, a DRAM market leader with strong expertise in low power mobile DRAM, SanDisk aims to increase its participation in the fast growing MCP market for multimedia handsets, thereby rounding out our one-stop-shop storage solutions for our handset customers," said Eli Harari, Chairman and Chief Executive Officer at SanDisk. "Through this partnership, each of our companies is leveraging the technical skills, IP and capacity investments of its partner to offer an integrated, competitive solution for our respective customers."
SanDisk and Qimonda have a long history in the development and manufacturing of NAND flash memory and mobile DRAM, respectively. This joint venture creates a synergistic relationship that enables both companies to benefit from each others complementary memory technologies and to offer a broad range of NAND/mobile DRAM based MCP products. The collaboration allows both companies to take advantage of the technology strengths and manufacturing platform of the other while each company remains committed to its respective global markets.
Engineering samples are expected to be available for evaluation in the second half of 2007, with mass production planned towards the end of 2007.
SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Milpitas, CA and has operations worldwide with more than half its sales outside the U.S.
SanDisk currently offers a broad range of both embedded and removable storage solutions for mobile handset manufacturers such as iNAND
™, mDOC, microSD
™ and Memory Stick Micro
Qimonda AG is a leading global supplier of DRAM memory products. Following the carve out from Infineon Technologies AG on May 1, 2006, Qimonda went public on the New York Stock Exchange on August 9, 2006. The company generated net sales of €3.81 billion in its 2006 financial year and has approximately 12,000 employees worldwide. Qimonda has access to five 300mm manufacturing sites on three continents and operates five major R&D facilities, including its lead R&D center in Dresden. The company is a leading supplier of DRAM products to PC and server manufacturers and is increasingly focusing on products for graphics, mobile and consumer applications as well using its power saving trench technology. Further information is available
SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. iNAND is a trademark of SanDisk Corporation. miniSD and microSD are trademarks of Toshiba Corporation. Memory Stick Micro (M2) and the Memory Stick Micro (M2) logo are trademarks of Sony Corporation. Other brand names mentioned herein may be trademarks of their respective holder(s).
This press release contains forward-looking statements based on assumptions and forecasts made by Qimonda's management and third parties. Statements that are not historical facts, including statements about Qimonda's beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and you should not place too much reliance on them. These forward-looking statements speak only as of the date they are made, and Qimonda undertakes no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for Qimonda's products in particular, the success of Qimonda's development efforts, both alone and with its partners, the success of Qimonda's efforts to introduce new production processes at its facilities and the actions of its competitors, the availability of funds for planned expansion efforts and the outcome of antitrust investigations and litigation matters, as well as other factors. Qimonda cautions you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement. These factors include those identified under the heading "Risk Factors" in Qimonda's Annual Report on Form 20-F for its fiscal year ended September 30, 2006, available without charge on Qimonda's website and at
1 "The NOR the Merrier and NAND is Grand in Mobile Handsets," NOR/SRAM/MCP Market Tracker - Q1 2007, iSuppli, Mark DeVoss, Senior Analyst.