Spansion, SMIC extend foundry agreement

Sunnyvale, Calif. — Spansion Inc., a provider of NOR Flash memory, and Semiconductor Manufacturing International Corporation (SMIC), China’s most advanced semiconductor foundry, will expand their current foundry agreement to include 65nm capacity and the manufacture of Spansion’s 45nm Flash memory.

Under the agreement, Spansion said it will prepay SMIC $50 million against future procurement of wafers, which will be made in three tranches over the next 12 months to help SMIC procure equipment for use in Spansion’s fabrication processes.
SMIC and Spansion have worked together since 2008, when they began the 65nm MirrorBit Flash memory process installation. Spansion also manufactures its 65nm products at its flagship manufacturing facility in Austin, Texas.

Spansion will begin transferring its 45nm Flash technology this month, with production expected in the first half of 2012.