HSIN-CHU, Taiwan, December 14, 2000 - Taiwan Semiconductor Manufacturing Company Ltd. ("TSMC" or "the Company") (NYSE: TSM, TAIEX: 2330), Altera Corporation ("Altera") (NASDAQ: ALTR), Analog Devices, Inc. ("ADI") (NYSE: ADI) and Integrated Silicon Solution, Inc. ("ISSI") (NASDAQ: ISSI) today jointly announced that TSMC will acquire all shares in WaferTech, LLC ("WaferTech") owned by Altera, ADI and ISSI for totally about US$ 500 million at the price of US$6 per share. The acquisition is expected to be completed by end of this year, and TSMC will hold almost 100% of shares in WaferTech from the current 66.89%.
WaferTech, the first pure IC foundry in the United States, was established in June 1996 in Camas, Washington, as a joint venture of TSMC, Altera, ADI, and ISSI. In July 1998, WaferTech started shipping customer wafers ahead of the original schedule.
Ms. KC Chen, TSMC senior vice president and spokesperson, noted that WaferTech has become one of TSMC’s stable foundry sources. TSMC has strong confidence in the prospect of WaferTech, an important strategic asset of TSMC. After the completion of the equity acquisition, TSMC’s flexibility to implement its future strategic and capacity expansion plans for North America will increase accordingly. Meanwhile, TSMC will continue to provide Altera, ADI and ISSI with its world-leading foundry services.
“TSMC’s support and commitment has been key to our success and that relationship remains unchanged. We expect that TSMC, including its Camas foundry, will continue as a strategic wafer supplier to Altera,” said Denis Berlan, Altera executive vice president and chief operating officer.
“Analog Devices has enjoyed a long and very successful relationship with TSMC,” said Jerry Fishman, Analog Devices President and CEO. “Our growth over the past few years and our reliance on TSMC as our primary foundry has resulted in ADI becoming one of TSMC’s largest customers. We expect to continue this mutually beneficial relationship for many years to come.”
“ISSI is very pleased with WaferTech’s past support. We will continue our strong relationship with TSMC and will continue to receive wafers from TSMC and WaferTech,” said Jimmy Lee, chairman and chief executive officer for ISSI.
TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs (Fab 1 and 2) and six eight-inch wafer fabs (Fab 3, 4, 5, 6, 7, and 8). The company has substantial capacity commitments at three joint venture fabs – Vanguard, WaferTech, and SSMC. TSMC is currently ramping the industry’s first 300mm pilot line at its Fab 6 and is constructing two dedicated 300mm fabs, Fab 12 in Hsin-Chu and Fab 14 in Tainan. In 2001, TSMC expects to produce nearly 4.8 million eight-inch equivalent wafers. Fabrication processes offered by TSMC include CMOS logic, mixed-mode/RF, volatile and non-volatile memory, and BiCMOS. TSMC’s corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at http://www.tsmc.com.