SCOTTS VALLEY, Calif. -- A new company formed here by the merger of Cubic Memory Inc. with a unit of TRW Inc. will supply silicon-based, stacked-memory products to the commercial market for computers and workstations as well as the satellite communications market.
Vertical Circuits Inc. is being created through the merger of Cubic Memory, of Scotts Valley, with TRW Components International Inc., of Torrance, Calif.. VCI will combine Cubic Memory's patented, ultra-dense packaging technology with TRWCI's spacecraft and electronic products.
Cubic's chairman, Peter Friedli, has also established a group of investors that recently invested several million dollars in working capital in exchange for an equity position in VCI.
Cubic's technologies involve stacking and interconnecting multi-die wafer segments or individual semiconductor die both vertically and horizontally. TRWCI has established product lines, marketing capability and strong relationships with international customers.
VCI foresees application of Cubic's dense memory products such as personal computers, wireless phones and other digital consumer products. The founders project an $1.25 billion annual market.
The key to VCI's strategy is its high-density, IC-stacking technology that provides higher memory densities on a tiny footprint, with better performance and lower cost per megabyte, according to the company. It accomplishes this by stacking dozens of memory dice or wafer segments like pancakes, eliminating the need for individual chip carriers. With it, computer and electronic systems designers can build smaller, more powerful systems, the company claimed.
"This is a very important and positive step forward for us," said Friedli. "The computer market has only just begun to understand the power of dense memory devices, and we will be well-positioned to address the growing market. The substantial investments made in Cubic's technology developments will provide VCI a unique competitive advantage."
"Forming VCI is a key element in TRW's strategy to utilize our capabilities to enable a broad array of value-creating organizations," said Timothy W. Hannemann, executive vice president and general manager of the TRW Space & Electronics Group, the parent of TRWCI. "The merging of these two companies will be catalyst for growth rates that neither organization could accomplish alone. TRWCI's expertise in product design, production control, sales and marketing will help speed the delivery of VCI's dense memory products to the market."