Infineon Technologies has decided to sell its 30% share of the ProMOS Technologies DRAM joint venture with Mosel Vitelic. ProMOS has responded (December 16) by suing Infineon under Taiwan law for breach of fiduciary duty, other misconduct and the violation of company law, the criminal code and the securities and fair trade act. An Infineon spokesman was unwilling to comment on the ProMOS allegations given that his company had not been informed as yet by its lawyers of the legal action.
Infineon Technologies has decided to sell its 30% share of the ProMOS Technologies DRAM joint venture with Mosel Vitelic. ProMOS has responded (December 16) by suing Infineon under Taiwan law for breach of fiduciary duty, other misconduct and the violation of company law, the criminal code and the securities and fair trade act. An Infineon spokesman was unwilling to comment on the ProMOS allegations given that his company had not been informed as yet by its lawyers of the legal action.
The German company broke off a shareholding agreement governing ProMOS in October (Bulletin 453, October 7, 2002). The move came after talks broke down concerning the terms of cooperation between the companies. ProMOS says it is assured of technology access down to 0.11µm to the end of 2004. The company is in discussions with the Japanese NEC/Hitachi spin-off DRAM company Elpida. Infineon's obligation to buy ProMOS products ends in January 2003. ProMOS officials claimed to the Financial Times last week that it was unclear whether the Infineon decision is final.
ProMOS seems particularly concerned over its share price. “Allegations” by Infineon had “caused [a] serious plunge of ProMOS' stock price”. These “allegations” include the claim that Infineon would stop licensing technology to ProMOS. Infineon's decision to sell its stake on December 10 has brought ProMOS stock to a “standstill” it is claimed.