Common use of Low Line Yield on Volume Production Clause in Contracts

Low Line Yield on Volume Production. If the output per lot (i.e., ----------------------------------- memory sort line yield which meets the inspection and test criteria is less than seventy percent (70%), and if NMI so requests, Toshiba will explain the reasons for the low line yield. Wafers with DRAM sort yields below the Minimum Acceptable Yield (as defined below) may not be shipped unless NMI's prior approval is obtained. The Minimum Acceptable Yield during the production phase is twenty percent (20%). This twenty percent (20%) will be waived by NMI until normal production begins. This initial production period will be determined in good faith by the parties.