Elpida halts negotiations with ProMOS

Elpida Memory Inc. has halted negotiations with ProMOS Technologies Inc. regarding a potential strategic alliance. The decision was mutually agreed upon by both parties.The two companies had forged a basic agreement in May 2003 which includes several terms. First, Elpida would license 0.10µm and finer process technology to ProMOS. Second, the companies would participate in the joint development of next-generation DRAM processes. Third, ProMOS would supply DRAM products to Elpida. Despite holding a number of detailed discussions, a final agreement could not be reached by both parties.Although plans to form a strategic alliance with ProMOS have been halted, Elpida says the event will have no effect on its production capacity. Elpida says it will still continue to provide DRAM products and services to its customers while maintaining its presence in the marketplace.