Cypress forms alliance and invests in MRAM IP developer NVE

Cypress forms alliance and invests in MRAM IP developer NVE
By Semiconductor Business News
April 24, 2002 (4:33 p.m. EST)
URL: http://www.eetimes.com/story/OEG20020424S0034

SAN JOSE - Cypress Semiconductor Corp. here today announced that it has struck a technology alliance and invested in NVE Corp., a developer of intellectual-property (IP) based on magnetic random-access memory (MRAM) technology.

Under the terms, Cypress invested $6.228 million in NVE in exchange for 3.433 million shares of NVE common stock, with an option to buy up to an additional two million shares for $3.00 per share.

The companies will also gain rights to each other's MRAM technologies. Cypress also agreed to manufacture wafers for NVE of Eden Prairie, Minn.

"NVE's technology will help speed our development of next-generation electronic components," said Cypress President and CEO T. J. Rodgers.

"This alliance solidifies our capital structure, gives us a powerful MRAM ally, and augments our product manufacturing capability," said NVE President and Chief Executive Officer Daniel A. Baker.

Unlike conventional DRAM and SRAM memories , which lose data when power is off, MRAM uses "spintronic" magnetic materials that retain data when power is removed.

In addition to Cypress, NVE has technology agreements with Agilent, Motorola, and Honeywell International (NYSE:HON). NVE retains the right to license its technology to other companies.