Fujian Jin Hua Integrated Circuit and Taiwan-based United Microelectronics (UMC) have signed a technology cooperation agreement for UMC to develop DRAM related technologies for Jin Hua, according to a company filing UMC issued with the Taiwan Stock Exchange (TSE).

Under the terms of the agreement, Jin Hua will provide UMC with production equipment for developing DRAM manufacturing technology, as well as service fees to cover R&D expenses according to the progress of technology development. The developed technologies will be jointly owned by both Jin Hua and UMC.

"This agreement leverages the strength of Taiwan's semiconductor manufacturing capabilities with China's vast market and capital," UMC said in the filing. "The R&D will be performed in Taiwan, with resulting technologies primarily targeted for specialty DRAM production."

UMC continued its jointly-developed technology will be "accessible for use by local IC design houses."

UMC added it will be in charge of technology development only, and has no plans enter the DRAM industry or invest in Jin Hua.