Hsin-Chu, Taiwan, June 26, 1996 -- Analog Devices, Inc. (NYSE: ADI) and Integrated Silicon Solution, Inc. (Nasdaq: ISSI) will join Altera Corp. (Nasdaq:ALTR) as partners in a Camas, Washington, joint venture spearheaded by Taiwan Semiconductor Manufacturing Company (TSMC).
Mr. Don Brooks, president of TSMC, said, "With the signing of this agreement, TSMC has formalized a new strategic relationship with key customers. Our company will continue to pursue innovative means of providing the service and capacity needed to meet future market demand for advanced technologies."
"TSMC's business philosophy is to extend its roots in Taiwan through subsidiaries in various parts of the world. Since the company was founded ten years ago, we have been adhering to this philosophy and have become the largest foundry in the world," Mr. Gary Tseng, TSMC spokesman, said in a press conference held by Taiwan Stock Exchange after the signing of the contracts with all joint venture partners. "We will continue investing in new fabs in Taiwan as well as advanced technologies such as 0.35 micron moving into volume production, and developing 0.25 micron and 0.18 micron. This joint venture in the US is a major milestone of our globalization that will give TSMC a proximity to the heart of the IC industry," Mr. Tseng added.
Holding 57.23 percent of WaferTech shares -- including 15 percent of property shares -- TSMC is the biggest shareholder in this joint venture. Its total equity investment of US$334.4 million will be prorated into three parts over a year and a half. TSMC holds four out of seven seats on the board of directors. Dr. Morris Chang, chairman of TSMC, is expected to be chairman of the board and CEO of WaferTech.
ADI, Altera and ISSI hold 18 percent, 18 percent and 4 percent of the shares, respectively and each will have one seat on the board of directors. The remaining shares -- 2.77 percent -- will be owned by private investors.
A 260-acre parcel of land across the Columbia River from Portland in Clark County, Washington is the site for WaferTech's proposed facility. The new 8-inch fab will break ground on July 11 of this year and will begin production in the second quarter of 1998. By the end of 1998, WaferTech will produce 10,000 8-inch wafers per month and by the end of 1999 will reach full production with monthly output of 30,000 8-inch wafers. The fab will utilize the state-of-the-art process technology of 0.35 micron, shifting to 0.25 micron and eventually 0.18 micron.
The facility will operate as an independent company and day-to-day operations will be managed by a management team. Kenneth G. Smith, a former Micron executive, has been appointed president of WaferTech. The company will employ 800 people at full capacity.
Altera is a world leader in high-performance, high-density programmable logic devices and associated computer-aided engineering (CAE) logic development tools. ADI is a leading manufacturer of precision high performance integrated circuits used in analog and digital signal processing. ISSI is a leading company in designing, developing and marketing high performance SRAM and nonvolatile memory integrated circuits used in personal computers, data communications, telecommunications and consumer products.
TSMC is the world's largest and fastest growing dedicated semiconductor foundry manufacturing more than one million six-inch wafers per year in 1995. The company offers CMOS fabrication processes that focus on advanced logic, mixed signal and a wide array of memory processes. The company posted growth of 57% in 1994, and 49% in 1995. Currently, the company's 6-inch fabs (Fabs 1, 2A and 2B) run at full capacity putting out 100,000 wafers per month. Fab 3, which commenced 8-inch wafer output in September of 1995 will be in volume product