Maxim and Seiko Ink Manufacturing Deal

February 15, 2007 by Jeff Shepard

Maxim Integrated Products Inc. announced that it has closed on a partnership agreement with Seiko Epson Corp. for Epson to manufacture Maxim’s mixed-signal semiconductor products designed for power-management and battery-management applications.

Maxim said the products will be manufactured in its submicron 200mm fab located in Sakata, Japan, and will ship primarily to the Japanese and Asian Pacific markets. Also as part of this alliance, Maxim and Epson will bilaterally trade key mixed-signal process technologies and deploy them at Epson’s Sakata fab. This technology transfer has already begun and will ramp to high-volume production through 2007, the companies said.

Epson is presently implementing a number of measures based on its 'Creativity and Challenge 1000' mid-range business plan aimed at improving the profitability of its various businesses. Epson entered discussions with Maxim on its electronic device businesses. The two companies believe that Epson can contribute to Maxim’s business by providing a silicon foundry service that optimized Epson’s semiconductor manufacturing technology and facilities, and advanced quality control technology.

Epson hopes that this agreement will help the company to maximize use of its mainstream 8-inch wafer manufacturing facilities, along with the benefits of stable utilization rates in its semiconductor business. Maxim, by expanding its manufacturing presence in the Asia-Pacific region, hopes to ensure steady product supply with consistent quality, and strengthen its support network in the region.