Infineon Technologies and IBM have reached an agreement upon the latter purchasing an embedded flash memory manufacturing process license. IBM is ready to deploy the 30-nm version of the process to the company's units in North America. At the same time, Infineon has announced that it would use the IBM foundry for its future products designed at the 130-nanometer process.

Infineon's 130-nanometer embedded flash process is used for achieving microcontroller chips with application in the automotive industry or in slow power chip card devices (such as smartcards) manufacturing. Infineon has been producing 130-nanometer semiconductors, since early 2006.

"We are pleased to extend our long history of collaboration and technical development with IBM through this licensing and foundry agreement", said Peter Bauer, head of the automotive, industrial and multimarket business group at Infineon. "With this collaboration, Infineon leverages the value of its own manufacturing IP, gains a new source for volume manufacturing, and strengthens our working relationship with a long-term partner."

Infineon has also licensed IBM their related Non-Volatile Memory (NVM) intellectual property, which further expands IBM's foundry capability to manufacture custom logic and high-density flash memory on a single chip. IBM has already integrated the new process at the company's 200-mm wafer fab in Burlington, but the chip manufacturer won't see any rolling chip until the second half of 2008, due to the momentarily unavailable preliminary chip design.

"We are broadening our semiconductor-offering portfolio by collaborating with Infineon, one of the world leaders of embedded flash technology", said Steve Longoria, vice president for semiconductors at IBM Global Engineering Solutions. "This licensing agreement leverages our current technology base and complements our analog and mixed signal expertise."

Until now, IBM has not disclosed what specific application demands the acquisition of Infineon's technology, but it is alleged that the company will create semiconductors for the automotive, industrial and multimarket sector.