Parlex and Infineon to form JV company
Dec 29, 2004
Parlex Corporation (NASDAQ:PRLX) and Infineon Technologies AG (FSE/NYSE:IFX) have agreed to establish a joint venture company to manufacture and sell advanced technology substrates for secure mobile electronic identification products. The joint venture will be headquartered in Hong Kong with manufacturing facilities in China.
Under the terms of the agreement, Parlex will have a 51% equity share with Infineon holding the remaining share. Infineon will pay Parlex $3 million and Parlex will contribute equipment and technology. Parlex Shanghai Circuit Company will also provide certain additional services which will be paid for by the joint venture. In addition to supplying substrates for the Infineon "Flip Chip on Substrate (FCOS)" program, the joint venture will offer its products to customers worldwide. It is anticipated that this new entity will be operational in April 2005.
Peter J. Murphy, President and CEO of Parlex commented: "Combining resources with the recognized market and technology leader for electronic identification products allows us to rapidly introduce a variety of new technologies developed specifically to serve this expanding customer segment. With Infineon as our partner, we are increasing our presence in the smartcard arena while we remain confident that we have the technology to become the world's leading smartcard substrate provider."