STMicroelectronics and Ovonyx Sign Licensing and Joint Development Agreement
Geneva and Santa Clara, Calif., December 21, 2000 – STMicroelectronics (NYSE:STM) (‘ST’) and Ovonyx, Inc. (‘Ovonyx’) today announced that they have signed an agreement whereby ST will license from Ovonyx thin-film nonvolatile semiconductor memory technology, and the two companies will establish a joint development program. The Ovonyx technology potentially offers benefits over existing nonvolatile memory technologies, including faster read/write, higher endurance and scalability.
The license agreement permits ST to use Ovonyx memory technology on a non-exclusive, royalty-bearing basis in its microcontrollers, Flash memory, MOS logic and other applications. The joint development program will begin immediately, and technical teams from both companies will work together to transfer Ovonyx memory technology and develop process technology to integrate the thin-film memory into the ST silicon fabrication process.
Ovonyx memory technology uses the Ovonic reversible phase-change memory process that has been previously commercialized worldwide in rewritable CD and DVD optical memory disks. The Ovonyx thin-film semiconductor memory technology can potentially be used in stand-alone applications, such as Flash and DRAM replacements, as well as in embedded applications in many areas such as microcontrollers and reconfigurable MOS logic.
“This agreement reflects ST’s commitment to maintaining its position at the forefront of nonvolatile memory technology. We are highly impressed by the potential of the Ovonyx thin-film technology and excited by the challenges and opportunities it presents to further enhance our already world-class technology portfolio, not only in memories, but also in a wide range of differentiated products and System-on-Chip solutions,” said Carlo Bozotti, Corporate VP and General Manager of ST’s Memory Products Group.
“As an acknowledged world leader in non-volatile memory technologies, ST is an ideal partner, and we look forward to working with them to integrate our thin-film technology into leading-edge semiconductor production processes,” said Tyler Lowrey, President & CEO of Ovonyx.
ST is one of the world’s leading suppliers of nonvolatile memories with a portfolio that includes EPROM, EEPROM and both general purpose and application specific Flash memories, and it is a world leader in embedding Flash and EEPROM memory into complex chips for use in smartcards, disk drives, automotive engine management units and other applications. The company has a comprehensive network of academic and industrial research partners with which it is exploring a variety of new memory technologies.
About STMicroelectronics
STMicroelectronics (formerly SGS-THOMSON Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Paris Bourse and on the Milan Stock Exchange. The company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. In 1999, the company’s net revenues were $5,056 million, and net earnings were $547 million. ST’s net revenues for the first nine months of 2000 were $5,621.5 million, and net income amounted to $990.2 million. Further information on ST can be found at www.st.com.
About Ovonyx
Ovonyx was formed with the charter to commercialize the proprietary Ovonic phase-change semiconductor memory technology originally invented and developed by Energy Conversion Devices, Inc. (see website at www.ovonic.com). Ovonyx nonvolatile memory technology offers significantly faster write and erase speeds and higher cycling endurance than conventional Flash memory. It also has the advantage of a simple fabrication process that allows the design of semiconductor chips with embedded nonvolatile memory using only a few additional mask steps. Additional information about Ovonyx and its memory technology is available at www.ovonyx.com.
STMicroelectronics – Forward Looking Statements
Some of the above statements, that are not historical facts are statements of future expectations and other forward looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended) that are based on management’s current views and assumptions and that involve known and unknown risks and uncertainties that could cause actual results or performances to differ materially from those in such statements due to, amongst other factors:
(i) inability to meet customer demand, (ii) new product developments and technological changes, (iii) manufacturing risks, (iv) inability to achieve timely ramp up of new production capacity, (v) the highly cyclical nature of the semiconductor industry, (vi) changes in customer order patterns and requirements, and (vii) currency fluctuations.
Unfavorable changes in any of the above or other factors listed under “Risk Factors” from time to time in the Company’s SEC reports including the Form 20F for the year ended December 31, 1999 which was filed with the SEC on June 27, 2000, could materially affect the Company.
For further information please contact:
At STMicroelectronics
Maria Grazia Prestini
Email: mariagrazia.prestini@st.com
Tel: +33 4 50 40 2532
Fax: +33 4 50 40 2540
At Ovonyx, Inc.
Tyler Lowrey
Email: tlowrey@ovonyx.com
Tel: +1.248.872.7225