Microchip Technology has announced that it has granted an exclusive limited license to sell certain serial NOR flash devices from its Silicon Storage Technology (SST) subsidiary to Professional Computer Technology (PCT), a Taiwan-based IC distributor.
PCT is allowed to sell serial NOR flash products of SST from 512Kb to 64Mb density in the geographic regions of Taiwan, China, Hong Kong and ASEAN (Singapore, Malaysia, Thailand, Indonesia, Vietnam and Philippines), effective immediately, according to Microchip.
Microchip noted that the license is limited to the industry segments of optical disc drives, set-top boxes, electronic books, video games, digital displays, DVD players/recorders, notebook, netbook and desktop computers, PC monitors, mass storage devices, printers/scanners/copiers/faxes, PC-CAMs, point of sale devices, graphics cards, servers/clients/workstations and mobile phones. Therefore, PCT has no license to sell the serial NOR flash products to any industry segments or geographic regions other than those listed above, and to undisclosed multi-national customers.
Also under the license, PCT will be able to buy wafers for the serial NOR flash products from SST's foundries in Taiwan and China, and have the wafers probed, assembled and tested using SST's qualified subcontractors in Taiwan and China. PCT will then sell these products to the selected Asia markets under its own brand name, effective September 1, 2010.
"Microchip has received a license fee at closing and will receive a royalty on the sale of each device. This deal will reduce SST's Memory revenues and monetize them in the form of a license fee and ongoing royalties," said Steve Sanghi, president and CEO of Microchip.
Microchip did not disclose the financial terms of the license.
PCT used to be the largest distributor for Silicon Storage Technology (SST), which was acquired by Microchip in April 2010. In 2009, the sales of SST products accounted for 55% of PCT's total revenues.
PCT specializes in the distribution of software, chips, modules and other semiconductor parts. The company has reported net profits of NT$29.69 million (US$925 million) for the first quarter of 2010, showing 7% growth from profits of NT$27.72 million a year ago. Revenues for the quarter grew 27% on year to NT$986 million.