News Article
Microchip Technology Has Executed An Agreement To Acquire A Semiconductor
Microchip Technology has executed an agreement to acquire a semiconductor
manufacturing complex in Gresham OR from Fujitsu Microelectronics for
$183.5m.
Initial hiring is expected to reach approximately 60 people during
preproduction phases. Over time, Microchip believes it could employ 360
people as the "Fab 4" facility reaches high volume manufacturing capacity
over the next five to six years.
The transaction is subject to the results of Microchip's due diligence and
other closing conditions. Closing of the transaction is expected to occur by
the end of October. Fujitsu Microelectronics has the option to accelerate
closing to the end of August 2002 upon completion of all conditions.
The Gresham campus covers 74,000m2 including 18,000m2 of cleanroom space.
The facility is designed to be capable of producing process technologies
down to 0.13microns and to support more than $1bn in annual sales at full
capacity. The facility comes equipped with approximately 350 process tools
and 170 support tools. Microchip plans to initially produce 200mm wafers on
its 0.5micron and 0.35micron process technologies. Microchip expects volume
production to commence at the facility by July 2003.
The company's Fab 3 (Puyallup WA) has yet to be switched on (Bulletin 374,
March 1, 2001). This facility will be maintained until it is required for
future production. Process equipment is to be relocated from Fab 3 to
facilities in Tempe and Chandler AZ. Upon closing of the Gresham deal,
Microchip intends to relocate some equipment from Fab 3 to Fab 4 to create a
closer equipment match to the company's Tempe facility in order to
facilitate a quicker process start at Fab 4. Fab 3 was bought from
Matsushita in 2000 (Bulletins 336, May 26 and 345, August 1).
CEO/president Steve Sanghi reports: "Without Fab 4, we believe we would have
had sufficient manufacturing capacity through the end of September 2003, at
our current rate of growth. Beyond that, we would need to add substantial
new advanced manufacturing equipment at 0.5 and 0.35micron process
technologies in our Tempe AZ wafer fabrication facility and at Fab 3 in
Puyallup WA. This acquisition will provide us with extremely cost-effective
additional manufacturing capacity in a much shorter time frame and on more
favorable terms than either the expansion of our Tempe fab or the start-up
of Fab 3 in Puyallup."
Sanghi also says that Microchip will be adding a 0.25micron technology
development programme in Fab 4 and will relocate certain personnel from
Tempe AZ to carry out the work.
Photonic switch developer Transparent Networks has relocated its company
headquarters from Santa Clara to Milpitas CA, next door to its MEMS foundry.
The new offices more than double previous office capacity and quadruples the
R&D lab and assembly areas. The company has recently claimed the world's
first 1200 3D MOEMS mirror array - its LambdaMirror - integrated with
high-voltage, high-density VLSI electronics. LambdaMirror is designed to be
scalable to optical switches able to provide more than 18,000 ports.
Gallium nitride/silicon carbide specialist Technology and Devices
International (TDI) is moving all operations to a new facility in Silver
Spring, Maryland. The 2900m2 site includes expanded manufacturing and R&D
space for crystal growth, epitaxial deposition, and material
characterisation. The initial focus of work will be leading edge GaN and
AlGaN epitaxial wafers. Follow-on product lines will include TDI's True Bulk
GaN substrates, introduced last summer.
President/CEO Vladimir Dmitriev reports: "These wafers have been under
development at TDI for almost five years and the move to the new facility is
the next step toward their commercialisation. By the end of this year we
expect to reach a production capacity of thousands of GaN epi wafers per
month."
TDI also aims to be the first to commercialise bulk GaN substrates. All
currently available GaN-based devices are grown epitaxially on less
efficient non-native substrates such as SiC or sapphire. GaN is used to
produce blue spectrum high brightness LEDs (HB-LEDs) as sources of green,
blue, violet, ultraviolet and white light. GaN-based UV laser diodes could
create higher density DVD storage. Advanced microwave electronic device
production could also benefit from lower cost GaN substrates.
preproduction phases. Over time, Microchip believes it could employ 360
people as the "Fab 4" facility reaches high volume manufacturing capacity
over the next five to six years.
The transaction is subject to the results of Microchip's due diligence and
other closing conditions. Closing of the transaction is expected to occur by
the end of October. Fujitsu Microelectronics has the option to accelerate
closing to the end of August 2002 upon completion of all conditions.
The Gresham campus covers 74,000m2 including 18,000m2 of cleanroom space.
The facility is designed to be capable of producing process technologies
down to 0.13microns and to support more than $1bn in annual sales at full
capacity. The facility comes equipped with approximately 350 process tools
and 170 support tools. Microchip plans to initially produce 200mm wafers on
its 0.5micron and 0.35micron process technologies. Microchip expects volume
production to commence at the facility by July 2003.
The company's Fab 3 (Puyallup WA) has yet to be switched on (Bulletin 374,
March 1, 2001). This facility will be maintained until it is required for
future production. Process equipment is to be relocated from Fab 3 to
facilities in Tempe and Chandler AZ. Upon closing of the Gresham deal,
Microchip intends to relocate some equipment from Fab 3 to Fab 4 to create a
closer equipment match to the company's Tempe facility in order to
facilitate a quicker process start at Fab 4. Fab 3 was bought from
Matsushita in 2000 (Bulletins 336, May 26 and 345, August 1).
CEO/president Steve Sanghi reports: "Without Fab 4, we believe we would have
had sufficient manufacturing capacity through the end of September 2003, at
our current rate of growth. Beyond that, we would need to add substantial
new advanced manufacturing equipment at 0.5 and 0.35micron process
technologies in our Tempe AZ wafer fabrication facility and at Fab 3 in
Puyallup WA. This acquisition will provide us with extremely cost-effective
additional manufacturing capacity in a much shorter time frame and on more
favorable terms than either the expansion of our Tempe fab or the start-up
of Fab 3 in Puyallup."
Sanghi also says that Microchip will be adding a 0.25micron technology
development programme in Fab 4 and will relocate certain personnel from
Tempe AZ to carry out the work.
Photonic switch developer Transparent Networks has relocated its company
headquarters from Santa Clara to Milpitas CA, next door to its MEMS foundry.
The new offices more than double previous office capacity and quadruples the
R&D lab and assembly areas. The company has recently claimed the world's
first 1200 3D MOEMS mirror array - its LambdaMirror - integrated with
high-voltage, high-density VLSI electronics. LambdaMirror is designed to be
scalable to optical switches able to provide more than 18,000 ports.
Gallium nitride/silicon carbide specialist Technology and Devices
International (TDI) is moving all operations to a new facility in Silver
Spring, Maryland. The 2900m2 site includes expanded manufacturing and R&D
space for crystal growth, epitaxial deposition, and material
characterisation. The initial focus of work will be leading edge GaN and
AlGaN epitaxial wafers. Follow-on product lines will include TDI's True Bulk
GaN substrates, introduced last summer.
President/CEO Vladimir Dmitriev reports: "These wafers have been under
development at TDI for almost five years and the move to the new facility is
the next step toward their commercialisation. By the end of this year we
expect to reach a production capacity of thousands of GaN epi wafers per
month."
TDI also aims to be the first to commercialise bulk GaN substrates. All
currently available GaN-based devices are grown epitaxially on less
efficient non-native substrates such as SiC or sapphire. GaN is used to
produce blue spectrum high brightness LEDs (HB-LEDs) as sources of green,
blue, violet, ultraviolet and white light. GaN-based UV laser diodes could
create higher density DVD storage. Advanced microwave electronic device
production could also benefit from lower cost GaN substrates.
