San Jose, California–Altera Corp. has agreed to sell its 23% equity ownership interest in WaferTech, a “pure play” foundry in Camas, Washington, to Taiwan Semiconductor Manufacturing Corp. (TSMC) for US$350 million. TSMC has also signed agreements with ADI and ISSI to acquire their shares in the company. Altera expects to close the transaction by the end of the year, at which time TSMC will increase its holding in WaferTech from 66.89% to nearly 100%.

Established in June 1996 as a joint venture between Altera, ADI, ISSI, and TSMC, the 1,000,000-sq-ft WaferTech facility began commercial production in mid-1998.

“Our relationship with TSMC represents one of the most important elements behind our success,” says Dennis Berlan, Altera’s executive vice president and chief operating officer. “We are confident that TSMC’s advanced manufacturing technology and superb operating performance will generate continued benefits for our customers.”

TSMC will continue to provide Altera, ADI, and ISSI with foundry services.