Powerchip Semiconductor will take over some production of certain types of a high-density flash memory chip known as AG-AND for Japanese chip maker Renesas Technology, marking another step into the flash memory business for Powerchip.
Powerchip already makes 1G bit AG-AND flash chips for Renesas, but the new agreement extends production to 4G-bit densities as well, Powerchip said.
AG-AND flash memory chips are used for storing data in consumer electronics devices ranging from digital cameras and mobile phones to USB memory cards.
The deal between the two companies comes just after Renesas said last week that it would halt development of AG-AND flash memory chips with capacities of 8G bit and beyond in order to concentrate its resources on other kinds of chips, such as microcontrollers and LCD (liquid crystal display) drivers.
By turning to Powerchip as a producer of the lower gigabit chips, Renesas will be able to ensure it supplies customers and users with a steady flow of AG-AND flash memory chips from Powerchip's sprawling chip factories in Taiwan.
The companies did not disclose financial aspects of the deal, nor how many chips Powerchip will be asked to make on the behalf of Renesas.