Plan to Form Joint Venture for x4 TechnologySEOUL, South Korea & MILIPITAS, Calif., Mar 21, 2007 (BUSINESS WIRE) -- Hynix Semiconductor Inc. and SanDisk Corporation (NASDAQ:SNDK)
announced today that they have reached an agreement for a patent cross
license covering the Flash memory components of both companies and an
agreement for product supply. Concurrently, the companies signed a
memorandum of understanding that outlines a joint venture contemplated
between the two companies which will manufacture memory components and
sell NAND memory system solutions.
Details of the joint venture will involve equal capital
investments by both companies in dedicated production capacity at
Hynix. The parties' x4 technology cooperation was started between
msystems Ltd. and Hynix before the acquisition of msystems by SanDisk.
Other terms of the agreement are confidential to the parties.
O.C. Kwon, Senior Vice President of Hynix Semiconductor Inc.,
said, "We are very pleased to successfully conclude negotiations with
SanDisk in a way that will benefit the customers and shareholders of
both companies. With the patent cross license behind us, we are able
to put aside distractions and turn our attention to a very promising
relationship in the development of x4 technology. We look forward to
building on this relationship to our companies' mutual benefit."
Eli Harari, Chairman of the Board of Directors and CEO of SanDisk,
said, "This cross license agreement resolves all IP issues between
Hynix and SanDisk, and allows each company to focus on maximizing its
opportunities. Hynix has done an outstanding job in NAND flash
manufacturing in the past few years, and I look forward to cooperating
with Hynix through the joint venture planned between our two
companies."
About Hynix Semiconductor Inc.
Hynix Semiconductor Inc. of Icheon, Korea, is the world's top tier
memory semiconductor supplier offering various Dynamic Random Access
Memory chips ("DRAMs") and Flash memory chips to a wide range of
established international customers. The Company's shares are traded
on the Korea Stock Exchange, and the Global Depository shares are
listed on the Luxemburg Stock Exchange. Further information about
Hynix is available at www.hynix.com.
About SanDisk
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.
Forward-Looking Statements
This news release contains forward-looking statements, including
statements about the proposed joint venture that are based on the
companies' current expectations and involve numerous risks and
uncertainties that may cause these forward-looking statements to be
inaccurate and may significantly and adversely affect the companies'
business, financial condition and results of operations. Risks that
may cause these forward-looking statements to be inaccurate include
among others: the companies being unable to agree on the definitive
terms of a joint venture, slower than expected growth in market demand
for the joint venture's products or a slower adoption rate for these
products in current and new markets than the companies currently
expect, future selling price erosion may be more severe than the
companies' expectations due to decreased demand or excess industry
capacity of flash memory, interruptions of or delay in supply from any
of the semiconductor manufacturing or subcontracting facilities,
including test and assembly facilities that supply products to the
joint venture, slower than expected expansion of SanDisk's global
sales channels, fluctuations in operating results, unexpected yield
variances, inability to make geometry conversions in a timely manner,
less than expected growth in the average megabyte capacity per
finished good, higher than expected operating expenses, higher than
anticipated capital equipment expenditures, adverse global economic
and geo-political conditions, including adverse currency exchange
rates and acts of terror and war, the timely development, internal
qualification and customer acceptance of new products that are based
on smaller geometry NAND and x4 technology, fluctuations in license
and royalty revenues, business interruption due to earthquakes,
hurricanes, pandemics, power outages or other natural disasters where
the joint venture will manufacture and assemble products, potential
impact of high energy prices and other global events outside of the
companies' control which could adversely impact consumer confidence
and hence reduce demand for our products, and the other risks detailed
from time-to-time under the caption "Risk Factors" and elsewhere in
SanDisk's Securities and Exchange Commission filings and reports,
including, but not limited to, its Form 10-K for the fiscal year ended
December 31, 2006 and its quarterly reports on Form 10-Q. Future
results may differ materially from those previously reported. The
companies do not intend to update the information contained in this
release.
SOURCE: SanDisk Corporation
SanDisk Corporation
Mike Wong, +1 408 801 1240 (Media)
mwong@sandisk.com
Lori Barker Padon, +1 408 801 1384 (Investors)
lbarker@sandisk.com
or
Hynix Semiconductor Inc.
Minho Bang, +82 2 3459 5316 (Media)
minho.bang@hynix.com
Sangwook Kim, +82 2 3459 5532 (Investors)
Sangwook.kim@hynix.com
