Hynix Semiconductor and SanDisk announced today that they have reached an agreement for a patent cross license covering the Flash memory components of both companies and an agreement for product supply. Concurrently, the companies signed a memorandum of understanding that outlines a joint venture contemplated between the two companies which will manufacture memory components and sell NAND memory system solutions.

Details of the joint venture will involve equal capital investments by both companies in dedicated production capacity at Hynix.  The parties’ x4 technology cooperation was started between msystems Ltd. and Hynix before the acquisition of msystems by SanDisk. Other terms of the agreement are confidential to the parties.

O.C.Kwon, Senior Vice President of Hynix Semiconductor Inc., said, “We are very pleased to successfully conclude negotiations with SanDisk in a way that will benefit the customers and shareholders of both companies. With the patent cross license behind us, we are able to put aside distractions and turn our attention to a very promising relationship in the development of x4 technology. We look forward to building on this relationship to our companies’ mutual benefit.”

Eli Harari, Chairman of the Board of Directors and CEO of SanDisk, said, “This cross license agreement resolves all IP issues between Hynix and SanDisk, and allows each company to focus on maximizing its opportunities. Hynix has done an outstanding job in NAND flash manufacturing in the past few years, and I look forward to cooperating with Hynix through the joint venture planned between our two companies.”