Phison Electronics has unveiled plans to invest an additional NT$50 million (US$1.7 million) in a mobile memory joint venture with Kingston Technology. Phison's total investment in the JV will accordingly amount to NT$120 million, equivalent to a 48% stake in the new company specializing in embedded memory products for smartphone and tablet PC applications.
Named Kingston Electronics, the JV has quietly commenced operations. It focuses on sales and marketing of embedded memory products, mainly eMMC-interface NAND devices, developed and manufactured jointly by Kingston and Phison.
Kingston procures NAND flash and mobile RAM chips, and also assists the new company by providing a sales channel and logistical support through its regional distributors and brand awareness. Phison is responsible for development of controller IC technology.
Kingston's partnership with Phison also marked the dedicated module maker's entry into the embedded memory territory dominated by chip vendors such as Samsung Electronics and Micron Technology. about 23% of all handsets in 2011 will feature eMMC, with the percentage to rise to 37% in two years' time. Other important eMMC segments will include tablets, e-book readers and portable navigation devices.