Agere seeks buyer for Orlando operations

Jan. 24, 2002 – Allentown, PA – Agere Systems is trying to find a buyer for its wafer fab in Orlando, FL.

The Orlando plant primarily manufactures advanced CMOS ICs for use in a broad range of communications and computer devices, ranging from computer disk drives to network communications systems. The facility has a work force of more than 1,100 employees in manufacturing, R&D, and corporate support functions.

Preliminary discussions have taken place with potential buyers that can benefit from the technology and process development capabilities of the Orlando operations, as well as its work force. The company’s intention is that the employees who support the site’s operations will move with the sale.

“Our intent is to sell the facility as an ongoing operation that would continue to be a source for our products,” said Mike Watson, VP. “For a potential buyer, this is an opportunity to acquire a world-class facility with the equipment set and technical talent to deliver superior semiconductor technology. In addition, the buyer would be joining a community that is committed to attracting and supporting high-tech businesses in the area.

“We understand the uncertainty surrounding this sale will be difficult for our employees and this community,” Watson continued. “We will seek an agreement that will be positive for our people, the community and our business.”

The Orlando facility has state-of-the-art cleanroom facilities built and equipped for flexible, high-volume manufacturing in a variety of technologies, including silicon germanium.

Agere has implemented a number of actions to improve operating efficiency and accelerate time to market, while reducing fixed costs and lowering its revenue breakeven level. For example, in December, the company closed the sale of its plant in Madrid, Spain to UK-based energy supplier BP.

Continuing those initiatives, Agere plans to combine a majority of its IC and optoelectronics operations from its sites in Reading and Breinigsville, PA, into the company’s Allentown campus.


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