Tustin Firm Expects to Sign Deal With Oki

Silicon Systems Inc. said Monday that it expects to sign a licensing agreement with Oki Electric Industry Company Ltd., one of Japan’s largest electronic companies, covering three of the Tustin chip maker’s newest and most advanced products.

The value of the agreement, which still must be approved by the Japanese government, is expected to reach about $2 million over the next three years.

Although the Oki-Silicon Systems deal comes just one month after the historic computer chip trade pact between Japan and the United States, Silicon Systems officials said the two agreements were not linked.

Instead, Stephen Cooper, Silicon Systems chief operating officer, said Oki was impressed with his company’s advanced technology and, rather than attempting to duplicate it, decided to license it for manufacturing in Japan.

Despite the relatively modest value of the deal, Silicon Systems officials said the agreement gives the company the opportunity to turn its chips into industry standards for the manufacturing of single-chip modems in Japan.

Under the terms of the agreement, Oki receives the right to manufacture and sell three single-chip modems in Japan, where most of the world’s modems are currently made. Modems are used to transmit computer data over telephone lines.

The agreement covers Silicon Systems’ K-series modems.

The agreement is subject to approval by MITI, the Japanese government agency that oversees international trade.