Jan. 22, 2002 – Ottawa, Canada – Zarlink Semiconductor has signed a definitive agreement with DALSA Corp. to sell its foundry facility in Bromont, Quebec, and related business to DALSA for CDN$27 million.

Under the agreement, Zarlink will receive CDN$21.6 million in cash and retain a 19.9% investment in the Bromont foundry. The agreement is subject to normal approvals and is expected to close within 30 days.

“This is a major step in our drive to become a fabless semiconductor design company,” said Patrick Brockett, president and CEO of Zarlink Semiconductor.

The Bromont facility is an ISO-certified operation featuring CMOS process technology for digital and mixed-signal (analog/digital) communications products. The plant also has other processes supporting industrial, scientific, and space applications, particularly imaging applications.

The two companies have also signed a three-year agreement to ensure continuity of supply for Zarlink products manufactured at Bromont.

Approximately 30% of the plant’s production is geared towards Zarlink products, primarily telecommunications chips and medical products. The balance of its output is foundry services offered to other companies around the world.

Approximately 250 Zarlink employees affiliated with the Bromont operation will be transferred to DALSA as part of the agreement. Zarlink does not expect that DALSA will significantly change the employment level of the facility.