Microchip buys Fujitsu fab
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Microchip Technology is to acquire a semiconductor manufacturing complex in Gresham, Oregon from Fujitsu Microelectronics for $183.5 million in cash.
The Gresham facility, which the Company is referring to as 'Fab 4,' will help accommodate Microchip's projected world-wide demand for its field-programmable microcontrollers, analog, serial EEPROMs, and complementary microperipheral products.
Initial hiring is expected to reach approximately 60 people during pre-production phases. Over time, Microchip believes it could employ approximately 360 people as the facility reaches high volume manufacturing capacity over the next 5 to 6 years.
The transaction is subject to results of Microchip's due diligence and other closing conditions. Closing of the transaction is expected to occur by the end of October, however, Fujitsu Microelectronics has the option to accelerate closing to the end of August 2002 upon completion of all closing conditions.
Situated on a 196-acre campus east of Portland, the Gresham campus comprises approximately 826,500 square feet, including approximately 200,000 square feet of clean room space. The facility is designed to be capable of producing process technologies down to 0.13 micron and to support more than $1 billion in annual sales at full capacity. The facility comes equipped with approximately 350 process tools and 170 support tools, which will reduce the time required to commence production.
Microchip plans to initially produce 8-inch wafers on its 0.5 micron and 0.35 micron process technologies at the Gresham facility. The facility will also house manufacturing operations, offices, meeting rooms and support functions. Microchip currently expects volume production to commence at the facility by July 2003.
