Cypress Semiconductor and SK Hynix announced the creation of a joint venture which will be engaged in the production and sale of SLC NAND flash memory Cypress of the current generation, as well as the development of future products.
Under the terms of the joint venture agreement, SK Hynix invests $3.6 million in cash and will receive 60 % of the company, while Cypress will invest $2.4 million and acquire a share of 40 %. The term of the current agreement to five years. While SK Hynix is the right to purchase an additional share of 10% in the case that its deliveries will exceed 15 000 plates with memory in a month.
The result is Cypress go from the production and sales of NAND memory and ability to concentrate on more profitable activities. In turn, SK Hynix will have the opportunity to use an outdated production capacity, as well as loyal customers.