Philips to buy former MiCRUS Semiconductor fab from IBM

Philips to buy former MiCRUS Semiconductor fab from IBM
By EBN staff, EBN
June 21, 2000 (10:09 a.m. EST)
URL: http://www.eetimes.com/story/OEG20000621S0012

Philips Semiconductors is buying an 8-in.-wafer fab from IBM Corp. and plans to invest up to $100 million in the next few years to upgrade the plant.

The fab, located at IBM Microelectronics' East Fishkill, N.Y., campus, had operated as MiCRUS Semiconductor and at one time was jointly owned by Cirrus Logic Inc.

The plant is able to manufacture up to 250,000 wafers a year, which Philips said will increase its total production capacity by more than 12.5% and more than double capacity for advanced BiCMOS technologies by the end of 2001.

"This is another example of Philips Semiconductors' adjusted investment policy," said Arthur van der Poel, Philips Semiconductors' president and chief executive. "We are currently investing more than 2.5 times as much as we did in 1999."

The fab employs approximately 950 people, all of whom will be retained.

Philips will continue to produce 0.35- and 0.25-micron CMOS processes and said it will introdu ce new processes into the fab to meet growing demand for communications ICs, which currently are being produced using Philips' QUBiC BiCMOS processes at its wafer fab in Albuquerque, N.M.

"Buying this fab is a step function in manufacturing, increasing output in the shortest time possible," said Stuart McIntosh, Philips Semiconductors' executive vice president and chief operations officer. "We benefit from buying a fully operational plant thus getting the benefit of a high-calibre workforce, enabling us to switch on extra capacity for key markets and customers, who will begin to see the benefits as early as this year."

While financial terms of the sale were not disclosed, the companies said that Philips Semiconductors will continue to supply product to IBM from the plant through 2002. Beccause the fab is already a fully functional operation, production of its first silicon is anticipated within a few weeks of the sale.

The acquisition brings Philips' total expansion investment to more than $2 b illion, including wholly owned and joint venture fabs in Singapore, the Netherlands, Germany, France, Texas, and New Mexico. With the completion of the acquisition, Philips will have six fully operational 8-in.-wafer fabs by the end of 2000.