10.29.2001
Invited into prospective Infineon-Toshiba deal

• Infineon is in talks with Toshiba to merge with the latter’s DRAM business in an effort to increase market share and competitiveness. ProMos, 32.5% owned by Infineon, was also invited into the negotiations. ProMos successfully built the industry’s first 12-inch DRAM wafer, which is now in volume production. ProMos’ DRAM technology is drawn from Infineon and in turn it acts as an OEM partner. If the deal goes ahead, ProMos will benefit through Infineon’s strong standing in the DRAM industry. Our current rating for ProMos is Neutral, and if the merger proceeds, we would expect to upgrade the rating as orders increase.