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Ramtron faces complaint on device failure

Posted: 17 Jul 2008     Print Version  Bookmark and Share

Keywords:semiconductor memory  device failures  manufacturing supplier 

According to Ramtron International Corp., one of its customers has requested payment for losses resulting from in-field failures of one of Ramtron's semiconductor memory products.

Ramtron has been working closely with its manufacturing supplier and the customer to identify the root cause of the failures. Based on its investigation to date and an evaluation of the failed devices, Ramtron has concluded that a manufacturing process defect in the Ramtron device combined with a unique use within the customer's product resulted in the device failures. Ramtron and its manufacturing supplier have implemented corrective actions to satisfy the customer's ongoing product delivery requirements. In addition, Ramtron has identified the specific lots that included the devices that failed, and has verified that versions of the same device that are currently shipping are not experiencing failure from this manufacturing process defect.

"We regret the impacts that this incident may have caused our customer and appreciate their cooperation in working to resolve this issue with us," said Bill Staunton, Ramtron's CEO. "Ramtron takes this matter very seriously and is committed to upholding the highest standards of product quality, integrity and customer satisfaction. We have made every effort to help our customer through this issue and expect to continue to do so."

Ramtron is working with its customer to try to determine the total losses the customer might sustain, and to determine, among Ramtron's insurance carriers and its contract-manufacturing supplier, the amount of the customer's losses for which Ramtron might be liable. Depending on the total losses the customer sustains and the portion of those losses for which Ramtron may ultimately bear the cost, Ramtron may record a charge that may require it to adjust its previously published financial results guidance for full-year 2008.

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