Apr 25, 2002
NVE Corporation (OTCBB:NVEC) and Cypress Semiconductor Corporation (NYSE:CY) announced that they have entered into a technology exchange agreement. Under the agreement, Cypress made an equity investment in NVE, the companies gain rights to each other's magnetic random-access memory (MRAM) intellectual property, and Cypress will assist NVE in defending its intellectual property rights under certain circumstances. Cypress also agreed to manufacture wafers for NVE.
Cypress invested $6.228 million in NVE in exchange for 3.433 million shares of NVE common stock, with an option to buy up to an additional two million shares for $3.00 per share. NVE will nominate a Cypress executive for election to its Board of Directors.
"NVE's technology will help speed our development of next-generation electronic components," said Cypress Semiconductor President and CEO T. J. Rodgers.
"This alliance solidifies our capital structure, gives us a powerful MRAM ally, and augments our product manufacturing capability," commented NVE President and Chief Executive Officer Daniel A. Baker.
Unlike conventional DRAM and SRAM memories which lose data when power is off, MRAM uses "spintronic" magnetic materials that retain data when power is removed. Semico Research Corporation predicts that MRAM has the potential to revolutionize the $48 billion semiconductor memory market. Several manufacturers plan commercial MRAM production by 2004.
In addition to Cypress, NVE has technology agreements with Agilent Technologies (NYSE:A), Motorola, Inc. (NYSE:MOT), and Honeywell International (NYSE:HON). NVE retains the right to license its technology to other companies.
Cypress has annual revenues of approximately $860 million. The company is "Driving the Communications Revolution"(TM) with high-performance integrated circuits for network infrastructure and access equipment.
NVE is a leader in the practical commercialization of "spintronics," which many experts believe represents the next generation of microelectronics. NVE has developed an impressive portfolio of MRAM intellectual property with research supported by government agencies including the Defense Advanced Research Projects Agency (DARPA) Power Aware Computing/Communication (PAC/C) and Magnetic Materials and Devices (MMD) projects, NASA, the National Science Foundation, the Missile Defense Agency, the Naval Research Laboratory, and the Department of Commerce. NVE's commercial products include sensors and couplers which revolutionize data acquisition and transfer.
Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations, and such variations could be material and adverse. Additional information concerning the factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's SEC filings.
