Over the next two years, the FRAM maker will transition the manufacturing of products that are currently being built at Fujitsu to its other foundry partners: Texas Instruments Inc. and IBM Corp.

Fujitsu is struggling within its own chip operations. It also recently signed a foundry deal with Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC). And recently, Ramtron signed a foundry deal with IBM, perhaps signaling that the memory firm would dump Fujitsu.

Fujitsu has been making 4-kilobit to 1-megabit FRAMs on a foundry basis for Ramtron. This represents most of Ramtron's production in terms of units.

TI is making 1-, 2- and 4-megabit FRAMs on a foundry basis for Ramtron. TI's FRAM process is based on a 130-nm technology. Ramtron expects to generate first production wafers during 2010 on the IBM's 0.18-micron wafer manufacturing process.

Ramtron (Colorado Springs, Colo.) also reported revenue of $10.5 million for the first quarter of 2009, compared with $14.3 million reported for the same quarter of 2008. First-quarter net loss was $6.4 million, or minus $0.24 per share, compared with net income of $565,000, or $0.02 per share, for the same quarter a year earlier.

First-quarter 2009 results include a restructuring expense of $459,000, and a non-cash impairment charge of $5.4 million related to restructuring and cost saving measures announced in March of this year.

As reported, nonvolatile ferroelectric random access memory vendor Ramtron cut its workforce by 17 percent and reduced salaries for all employees by 5 to 12 percent as part of a series of cost reduction actions.

''Inventory reductions within our sales channels made for an increasingly challenging first quarter,'' said Bill Staunton, Ramtron's chief executive, in a statement. ''Compared with last year, reduced order rates for our lower-end serial memories overshadowed increases in our integrated, custom, and high density FRAM products. By target market, order declines were sharp in automotive and office equipment while other printer related sales grew and shipments into metering applications showed areas of strength.''

Meanwhile, negotiations are ongoing between Ramtron, its insurance carrier and one customers regarding the previously announced request for payment for losses resulting from in-field failures of one of Ramtron's semiconductor memory products. These parties have recently concluded a nonbinding two-day mediation without reaching an agreement.