Conexant expands its foundry deal with UMC

Conexant expands its foundry deal with UMC
By Semiconductor Business News
July 12, 2000 (10:22 a.m. EST)
URL: http://www.eetimes.com/story/OEG20000712S0008

NEWPORT BEACH, Calif. -- Conexant Systems Inc., a leading integrated devices manufacturer (IDM), is moving a larger share of its production to an outside supplier.

The big supplier of communications chips, which now claims a run rate of $2 billion annually, today announced it has signed a long-term strategic agreement with United Microelectronics Corp. (UMC), the giant Taiwanese silicon foundry. The deal gives Conexant a guaranteed foundry capacity.

Conexant said it will receive "significant" foundry capacity and access to UMC's advanced process technology to support future growth. The two companies, which have been working together for five years, wouldn't give any details of their new agreement.

"Strong foundry relationships are a core component of Conexant's manufacturing strategy for meeting customer volume commitments," commented Terry Ellis, senior vice president at the Newport Beach company. "Given the explosive demand in [our] marke ts, we must augment our internal manufacturing with guaranteed, world-class foundry capacity that features leading-edge processes."