April 29, 1999 17:31
Neomagic and Infineon Link Up for Embedded DRAM-Based Product
Manufacturing
www1.newsalert.com
Multi-Year Capacity and Manufacturing Technology Agreement for Notebook Multimedia and Consumer Products
NeoMagic Corporation (Nasdaq: NMGC), the world's leading producer of single-chip multimedia accelerators for
notebook computers, has signed a contract with Infineon Technologies (formerly Siemens Semiconductors) to supply
semiconductor wafers for NeoMagic's embedded DRAM-based product lines.
"The addition of Infineon will provide increased capacity and flexibility for new product deliveries," said Abe Korgav,
vice president, manufacturing operations at NeoMagic Corporation. "Improved economics and access to worldwide
manufacturing resources will be important to our business. We are pleased to be able to add Infineon as a high-quality
source of state-of-the-art fabrication technology. We anticipate volume production at Infineon to begin in the fourth
quarter of this year, and we look forward to a growing and mutually beneficial business relationship between our two
companies."
"This manufacturing relationship positions Infineon as a source of competitive advantage to NeoMagic in a fast moving
marketplace," said Juergen Scholz, director of the Embedded DRAM group at Infineon Technologies. "NeoMagic is
clearly the leader in a product category they virtually invented. Success, however, attracts imitators. To help them stay
ahead, our job will be to supply technical, quality and logistical advantages necessary for continued success."
Complementary Skills
In just three years of production, NeoMagic has shipped over 15 million multimedia accelerators using embedded
DRAM technology to such leading notebook PC manufacturers as Acer, Compaq, Dell, Fujitsu, Gateway,
Hewlett-Packard, Hitachi, IBM, Micron, Mitsubishi, NEC, Panasonic, Sharp, Siemens, Sony and Toshiba. To date, the
majority of NeoMagic's production capacity has been provided by long-term business partner Mitsubishi Electric
Corporation, with Toshiba Semiconductor added last year as an additional supplier.
Infineon Technologies has taken a pioneering role in developing embedded memory manufacturing technologies, with
commercial production dating back to 1989. Since then, the company has focused on offering the widest selection of
eDRAM configuration options at the highest densities, lowest cost and highest performance. Initially, Infineon will deploy
its latest 0.24-micron and 0.20-micron embedded DRAM technologies for the NeoMagic manufacturing program.
Infineon's manufacturing and global supply chain capabilities strengthens NeoMagic's value proposition to
manufacturers of portable electronics devices. This added capacity and value is important as NeoMagic moves into
markets beyond notebook multimedia accelerators, including digital cameras, DVD drives and recorders, as well as
other market opportunities driven by the trends towards multimedia, mobility and the Internet.
About Infineon
Infineon Technologies AG, formerly Siemens' Semiconductor Group, based in Munich, Germany, provides
semiconductor technology for winning solutions in the communications, automotive, computer peripherals, consumer
electronics, industrial automation, and wireless markets. The company's comprehensive line of products includes
memory products, RF components, chip card ICs, discrete and power semiconductors, sensors and fiber optic
components. In fiscal 1997/98, the company achieved sales of $3.8 billion (DM 6.7 billion) and employed 25,000
people worldwide.
Infineon Technologies Corporation is the company's North American affiliate, with headquarters at 1730 North First
Street, San Jose, CA 95112. For more information, contact 800-777-4363; 408-501-6000; or see
infineon.com.
About NeoMagic
NeoMagic Corporation, based in Santa Clara, California, has pioneered the integration of DRAM, complex logic, and
analog circuits into single-chip solutions. The company's proprietary MagicWare(TM) technology increases
performance while reducing power consumption, by eliminating the need to drive signals off-chip to discrete memory. In
addition to multimedia accelerators for notebook computers, the company is now pursuing product opportunities in
digital cameras, DVD drives, and DVD players. NeoMagic's multi-market strategy focuses on applications that benefit
from mobility, small form factor, battery life, and performance enhancements, and provide value-added semiconductor
solutions for mobilizing the capture, storage, access, and playback of digital multimedia content for the Internet age.
NeoMagic may be contacted on the World Wide Web at www.neomagic.com, or at 408/988-7020.
Note to Editors: Infineon and the Infineon logo are trademarks of Infineon Technologies AG. NeoMagic, and the
NeoMagic circle logo are registered trademarks of NeoMagic Corporation.
MagicWare is a trademark of NeoMagic Corporation. All other trademarks are the property of their respective owners.
NeoMagic disclaims any proprietary interest in the marks and names of others.
This release contains forward-looking statements, which reflect Infineon's and NeoMagic's current intentions and
expectations. Actual events and results could vary significantly based on a variety of factors, including the successful
development and ramping of production on new products and the risk of delays. Infineon Technologies AG and
NeoMagic Corporation undertake no obligation to publicly release the results of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
CONTACT: Infineon Technologies
Martin Chorich, 408/501-6390
martin.chorich@infineon.com
or
NeoMagic Corporation
Betty Watkins, 408/988-7020
bwatkins@neomagic.com
or
ChipShots, Inc.
Bruce LeBoss, 408/541-8744
leboss@chipshots.com
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