Intel finalizes buy of DEC chipmaking unit

Intel Corp. has completed its $625 million buy of Digital Equipment Corp.`s semiconductor manufacturing operations, but has not yet decided what processes it will deploy at the newly acquired Hudson, MA, fab.

As part of the purchase agreement, Intel will provide foundry manufacturing for multiple generations of Digital`s Alpha 64-bit microprocessor, with Digital retaining its Alpha-related technology and design teams. Intel, however, has not yet decided what tooling or processes it will bring to the logic fab. When the deal was announced last fall, the firm planned to install a new set of Intel-approved tools to fully equip the under-utilized Digital facility. Original forecasts called for Intel`s line to start up using 0.25-micron technology, but according to an Intel spokesperson, the firm is now reassessing those forecasts.

“We don`t think we need (more 0.25 micron capacity) right now,” he said.

No word was available on when the company would begin equipment installation. The acquisition is part of a settlement of a patent dispute between the two companies, and not only includes the Hudson plant, but design and marketing facilities in Austin, TX, and Jerusalem, Israel. Approximately 1,800 Digital employees joined Intel after the deal closed. Both companies plan to file documents dismissing the previously filed lawsuits in Massachusetts, Oregon and California. In addition, Intel and Digital have agreed to broad patent cross-licensing.

Reprinted from WaferNews. WaferNews is a weekly newsletter covering the semiconductor equipment and materials community. For information on subscriptions, check the Web at www.wafernews.com, or contact Kathy Weeks at (603) 891-9174, fax (603) 891-0597, e-mail: [email protected].