TSMC Breaks Ground on First U.S. Wafer Foundry

Hsin-Chu, Taiwan, July 12, 1996 -- Taiwan Semiconductor Manufacturing Company (TSMC) in association with its joint venture partners, broke ground yesterday on a $1.2 billion wafer foundry in Camas, Wash. The new facility, a joint venture between TSMC, Analog Devices Inc. (NYSE: ADI), Integrated Silicon Solution Inc. (Nasdaq: ISSI), and Altera Corporation (Nasdaq:ALTR), will operate as an independent company named WaferTech.

The groundbreaking ceremony, comprised of both Taiwanese and American traditions, was held today at the WaferTech site located on First Street in Camas, Wash. The event program included remarks from Morris Chang, Chairman and Chief Executive Offer of both WaferTech and TSMC; Kenneth Smith, President and Chief Operating Officer of WaferTech; Mike Lowry, Governor of Washington; Rodney Smith, President and Chief Executive Officer of Altera Corp.; David French, Vice President and General Manager, Computer Products Division, Analog Devices Inc., Jimmy Lee, President and Chief Executive Officer of ISSI; and Dean Dossett, Mayor of Camas.

In his remarks, Morris Chang noted, "WaferTech is the first start-up company in the last decade to include a wafer fab." He later commented, "We are very pleased to be associated with the industry's first-class companies as our partners and are looking forward to a long and fruitful relationship."

WaferTech will be constructed on a 260-acre parcel of land just across the Columbia River from Portland, Ore. in Clark County, Wash. Production is estimated to begin in the second quarter of 1998. By the end of 1998, WaferTech will produce 10,000 8-inch wafers per month. At full production, by the end of 1999, the facility will reach a monthly output of 30,000 8-inch wafers. The fab will utilize state-of-the-art process technology of 0.35 micron, shifting to 0.25 micron, and eventually 0.18 micron.