SAN JOSE, Calif. -- Microchip Technology Inc. continues to divest its NOR flash
The company has granted an exclusive limited license to sell certain serial
NOR flash products from its Silicon Storage Technology (SST) subsidiary to
Taiwan's Professional Computer Technology Ltd. (PCT).
PCT is a distributor that specializes in the distribution of software, chips,
modules and other semiconductor parts. The license is limited to certain
geographic regions and industry segments. The financial terms of the license
were not disclosed. Since 1993, PCT has been a sales rep for flash memory for
In April, Microchip and SST announced that Microchip completed its previously
announced acquisition of SST. In May Microchip outlined plans for the SST
acquisition. Microchip said it would break up SST and sell many of the pieces to
outside companies, including SST's NAND controller, power amp and other lines.
Microchip said it has no plans to enter the commodity NOR flash business.
Also in May, Microchip announced the sale of several product lines that came
to the company with the recent SST acquisition--including NAND drives, NAND
controllers and other products--to Greenliant Systems Ltd. Formed in April,
Greenliant is headed by Bing Yeh, the former CEO of SST. The financial terms of
the deal were not disclosed.
Now, Microchip has entered into a deal with PCT. This is an exclusive limited
license to sell serial NOR-flash products of SST from 512-K to 64-MB density in
the geographic regions of Taiwan, China, Hong Kong, and ASEAN (Singapore,
Malaysia, Thailand, Indonesia, Vietnam and Philippines).
The license is limited to the industry segments of optical disc drives, set
top boxes, electronic books, video games, digital displays, DVD player/recorder,
notebook computers, netbooks, desktop computers, PC monitors, mass storage
devices, printers/scanners/ copiers/faxes, PC-CAM, point of sale devices,
graphics cards, servers/clients/workstations, and mobile phones.
PCT has no license to sell these products to any industry segments or
geographic regions. Certain undisclosed multi-national customers are excluded
from this license.
Under this license, PCT will be able to buy wafers for the serial NOR-flash
products from SST’s foundries in Taiwan and China and have the wafers probed,
assembled and tested using SST’s qualified subcontractors in Taiwan and China.
PCT will then sell these products under its own brand name.
“This deal continues our restructuring of the SST business by allowing
Microchip to transfer an important component of SST’s serial NOR-flash memory
business to PCT through the grant of an exclusive limited license. Microchip has
received a license fee at closing and will receive a royalty on the sale of each
device. This deal will reduce SST’s memory revenue and monetize it in the form
of a license fee and ongoing royalties,” said Steve Sanghi, President and CEO of
Microchip, in a statement.
“With the sale of NAND drives and certain memory products to Greenliant
Systems Ltd. on May 21, 2010 and this exclusive limited license for a
significant piece of memory business to PCT, Microchip is well on its way to
restructuring its SST subsidiary into a business model that will complement the
Microchip operating model,” Sanghi added.