With Reuters

Israel-based Saifun Semiconductors has closed a three-part deal with Advanced Micro Devices (NYSE:AMD) and Fujitsu (6702.T), five months are suing them for alleged patent infringement.

The three companies have now agreed to collaborate and cross-license patents and technology in a deal that brings U.S.-based AMD and Japan-based Fujitsu a stake in Saifun, and is expected to generate about $100 million in revenues for the Israeli company.

Saifun president and CEO said the company is pleased with its agreements with Fujitsu and AMD, leading companies in the flash memory arena. "Together we can leverage our operations and create a flash memory with especially high density, based on Saifun's NROM technology. The acknowledgement of our technology and intellectual property by these industry leaders reinforces Saifun's status as a leader in memory technology."

Saifun chief operating officer Kobi Rozengarten declined to comment on newspaper reports and would not disclose the financial aspects of the deal,




says AMD and Fujitsu are paying Saifun $25 million for the license to use its Flash Memory, and are investing $25 million in the company, according to a company value of half a billion dollars.


also said AMD and Fujitsu would pay Saifun royalties over the next 10 years, generating revenues of about $100 million.

The royalties will be for Saifun's NROM technology. Saifun will be meanwhile using AMD's MirrorBit technology to develop the next generation of its non-volatile memory technology.

Rozengarten told Reuters the contract with AMD and Fujitsu has three parts, with the licence being the main part. They will pay royalties, he said. "We will also collaborate on the technology in the same area," he said.

"The equity which the Israeli newspapers refer to as the first item, though it's very important and a sign of commitment, is not the main part," he said. "We believe it's a win-win deal."

Rozengarten said the deal with AMD and Fujitsu would not conflict with its collaboration with Infineon (IFXGn.DE).

Saifun and Germany's Infineon have a joint company in Germany and Israel focusing on data flash and they are currently shipping samples to key customers. Infineon has also invested in Saifun in the past, though Rozengarten would not elaborate.

Rozengarten also said Saifun planned to go public but not in the near term. "An IPO is not at the top of our list of priorities," he said.