Microchip Signs Agreement for Semiconductor Facility
Microchip Technology Inc. (Chandler, AZ) announced that it has executed an agreement to acquire a semiconductor manufacturing complex in Gresham, OR, from Fujitsu Microelectronics Inc. for $183.5 million in cash. The Gresham facility, or Fab 4, will substantially enhance Microchip’s short-term and long-term global manufacturing capacity. Closing of the transaction is expected to occur by the end of October 2002, however, Fujitsu has the option to accelerate closing to the end of August 2002 upon completion of all closing conditions.
Microchip believes the facility will reach high-volume manufacturing capacity over the next five to six years. The facility is capable of producing process technologies down to 0.13 micron and to support more than $1 billion in annual sales at full capacity. The facility comes equipped with approximately 350 process tools and 170 support tools, which will reduce the time required to commence production. Microchip plans to initially produce 8in wafers on its 0.5-micron and 0.35-micron process technologies. The facility will also house manufacturing operations, offices, meeting rooms and support functions. Microchip currently expects volume production to commence at the facility by July 2003.