Wonder what are the plans for the $30M (US)?
ZARLINK SELLS UK WAFER FABRICATION PLANT TO X-FAB
SEMICONDUCT ...
Zarlink has arranged the sale of its wafer fabrication facility in Plymouth, Britain, as
well as Internet protocol and related foundry businesses to companies controlled
by X-FAB Semiconductor Foundries AG of Erfurt, Germany, for $30-million
(U.S.), represented by $12-million (U.S.) in cash on closing and a secured note of
$18-million (U.S.) repayable over three years.
"This is another important milestone in building a fabless semiconductor design
company," said Patrick J. Brockett, president and chief executive officer, Zarlink
Semiconductor. "Coupled with last month's sale of our foundry in Bromont,
Quebec, we are increasingly focusing our engineering, management and financial
resources on speeding the introduction of new communications and
ultralow-power medical integrated circuits."
The Plymouth facility comprises two CMOS (complementary metal oxide
semiconductor) wafer fabrication lines for producing digital and mixed-signal
communications and medical semiconductors. The plant recently launched a new
ultralow-power Analog Non Volatile 0.35-micron CMOS process optimized for
low voltage and low power applications.
As part of the sale, the two companies have signed a five-year agreement to
ensure continuity of supply for Zarlink products manufactured at Plymouth.
Currently, the majority of the facility's output consists of telecommunications and
medical chips designed by Zarlink. The balance of Plymouth's output is sold to
other global companies.
Approximately 175 Zarlink employees engaged in wafer production are
transfering to X-FAB as part of the sale. Zarlink will continue to employ the
remaining on-site staff of design engineers, product developers and test engineers.
Zarlink expects to record no gain or loss on this sale in the fourth quarter of fiscal
2002.
WARNING: The company relies upon litigation protection for "forward-looking"
statements.
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