California Micro Devices and MagnaChip Ink Strategic Agreement

August 29, 2007 by Jeff Shepard

California Micro Devices and MagnaChip Semiconductor Ltd. announced a strategic foundry business and process technology transfer agreement. MagnaChip is expected to port proprietary CMD process technology to its fab in Gumi, South Korea, to enable production of CMD protection chips for mobile handset and digital consumer electronics applications. Additionally, CMD will use MagnaChip’s existing 0.35u 5/18V high voltage processes in MagnaChip’s Cheongju, Korea, fabrication facilities to enable the production of its PhotonIC® LED driver chips.

Channy Lee, EVP and General Manager of MagnaChip’s Specialty Manufacturing Service (SMS) business stated, "This agreement with CMD is a model of the types of strategic relationships we are building with customers to provide growth and stability to our foundry business, while allowing customers to benefit from provision of our process technology and customer service flexibility. MagnaChip will continue to seek strategic partnerships globally as we expand our customer base."

"MagnaChip’s advanced technology and manufacturing capabilities are complementary with our strategy of broadening our foundry capabilities for customers worldwide," stated Manuel H. Mere, CMD Vice President of Operations and Information Systems. "We look forward to bringing up the processes and production this year."