Although the 0.35 micron process technology that AT&T Co’s AT&T Microelectronics is developing jointly with NEC Corp following their April announcement (CI No 1,658) has direct application to 64M-bit memory chips, AT&T says it does not plan to fabricate dynamics but will apply the technology to fast static RAMs, custom chips of all kinds including ASICs, signal processors and other communications chips – NEC however will prove the process on 64M dynamics before moving on to other products: any patents arising out of the joint development between teams of engineers, probably involving around 50 to 70 people all told, will be shared, and any previously existing patents will be licensed between the two companies; reasons for the alliance are said to be complementary technologies, elimination of risk and reduction in research and development expenditure for each; the agreement is the culmination of a relationship that started at least five years ago and was officially announced as a basic agreement in semiconductors in March 1990; both sound notes of caution about the future – the agreement is for only two years, but they have already decided on 25 research themes or module developments, and this will be extended to integration of the modules and manufacturing if it makes good business sense, to joint manufacture and possible jointly-owned factories a la Toshiba Corp-Motorola Inc if the mood is right, possibly around 1995; NEC hopes the agreement will set a good example to other Japanese firms in terms of solution of trade issue problems.