China-based GigaDevice Semiconductor, a maker of flash memory devices and microcontroller (MCU) chips, has signed a strategic agreement on the supply of wafers worth about CNY1.2 billion (US$183.7 million) with Semiconductor Manufacturing International (SMIC), according to industry sources.

SMIC has been GigaDevice's major foundry partner supplying more than 50% of GigaDevice's total wafer consumption, said the sources. The recently-signed deal will ensure GigaDevice to secure enough supply from the foundry service provider.

SMIC has landed a ramp-up of orders for NOR flash memory from GigaDevice, previous reports quoted industry sources as saying. GigaDevice has started ramping up wafer starts at SMIC since June from 2,000 units monthly to 8,000 units.

GigaDevice is among the beneficiaries of Cypress' and Micron's reduced focus on the NOR flash field, which also include Taiwan-based Macronix International and Winbond Electronics.

GigaDevice generated revenues of CNY939 million in the first half of 2017, up 43.3% from a year earlier, while net profits surged 99.6% on year to CNY179 million. GigaDevice is currently engaged in the development of 45nm process technology for the manufacture of NOR flash products, while optimizing its 24nm NAND flash offering.