IDT (Integrated Device
Technology, Inc.) (NASDAQ:IDTI), a leading provider of essential mixed signal
semiconductor solutions that enrich the digital media experience and Taiwan
Semiconductor Manufacturing Company (TWSE:2330) (NYSE:TSM), today announced
they have entered into an agreement to transfer product fabrication processes
and related activities currently running in the IDT Hillsboro, Oregon facility
to TSMC foundries. The transfer, which has already received approval by both
companies and the IDT Board of Directors, is expected to take up to two years
to complete and will cover the lifecycle of all products involved.
"Over the past year or so, IDT has been shifting gears towards developing
application specific solutions for the communications, computing and consumer
markets. Obtaining an agreement with TSMC enables us to take full advantage
of their cutting edge manufacturing processes and geometries and is the logical
next step in our transformation," said Mike Hunter, vice president of
worldwide manufacturing for IDT. "This agreement, which will combine IDT
system expertise and architecture and the TSMC technology platform, expands
our overall global manufacturing capability. It also officially starts the countdown
for IDT to move from a Fab-lite to a Fab-less model."
"The Fab-less model enables IDT to focus our resources and investments
on innovative new product development where we can leverage our core strengths
in definition and design differentiation, while outsourcing manufacturing to
the industry leader," said Ted Tewksbury, President and CEO of IDT. "This
initiative is a key enabler of our mixed signal strategy as IDT's products
transition to more advanced process technologies supporting higher levels of
speed, complexity and integration."
"TSMC remains committed to providing a full suite of foundry services
to customers, enabling them to deliver market-leading solutions not only in
advanced technologies but also in mature technologies," said Dr. C.C.
Wei, senior vice president, Mainstream Technology Business, TSMC. "This
announcement reflects our commitment to providing IDT with robust process technologies
as they transition to a Fab-less business model."
IDT product processes and geometries transferred under this agreement include
existing IDT products currently manufactured at the Fab 4 facility in Hillsboro,
Oregon at .13 micron process technology and above. These processes and products
will be transferred to TSMC over the ensuing two years. The agreement does not
include transfer or sale of the process equipment or the IDT facility located
in Hillsboro, Oregon. IDT intends to exit the Hillsboro, Oregon wafer fabrication
facility at the end of the transfer period and has engaged a third party to
market the facility to potential buyers that can continue fabrication operations.
"IDT has long been a valued customer with TSMC," said Rick Cassidy,
president, TSMC North America. "We will work with them step-by-step to
ensure a seamless transition and appreciate their confidence in TSMC by making
this strategic decision."
With the goal of continuously improving the digital media experience, IDT integrates
its fundamental semiconductor heritage with essential innovation, developing
and delivering low-power, mixed signal solutions that solve customer problems.
Headquartered in San Jose, Calif., IDT has design, manufacturing and sales facilities
throughout the world. IDT stock is traded on the NASDAQ Global Select Stock
Market under the symbol "IDTI."
TSMC is the world's largest dedicated semiconductor foundry, providing
the industry's leading process technology and the foundry's largest
portfolio of process-proven libraries, IP, design tools and reference flows.
The Company's total managed capacity in 2008 exceeded 9 million 8-inch
equivalent wafers, including capacity from two advanced 12-inch - GigaFabs,
four eight-inch fabs, one six-inch fab, as well as TSMC's wholly owned
subsidiaries, WaferTech and TSMC (China), and its joint venture fab, SSMC. TSMC
is the first foundry to provide 40nm production capabilities. Its corporate
headquarters are in Hsinchu, Taiwan.