Date: 06/08/2009

IDT goes fablite by passing the chip fabrication work to TSMC

Interface semiconductor device expert Integrated Device Technology is becoming fablite by signing an agreement with TSMC to transfer product fabrication processes and related activities presently running in the IDT Hillsboro, Oregon facility to TSMC foundries. The process of chip production transfer is expected to take 2 years to complete.

The agreement excludes transfer or sale of the process equipment or the IDT facility located in Hillsboro, Oregon. After the completion of production transfer, IDT intends to sell the Hillsboro, Oregon wafer fabrication facility by engaging a third party to market the facility.

IDT’s revenue for the fiscal first quarter of 2010 (ending Jun 28 09) was $116.0 million, compared with $188.2 million reported in the same period one year ago. Also company has reported a loss of $14.1 million for its fiscal first quarter of 2010. IDT has inorganically grown recently by acquiring Tundra Semiconductor.

Comments by TSMC and IDT executives:

“The Fabless 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 fabless business model.”

“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.”