July 18, 2002 – Gresham, OR – Microchip Technology Inc., Chandler, AZ, has executed an agreement to acquire a semiconductor manufacturing complex in Gresham, OR, from Fujitsu Microelectronics Inc. for $183.5 million in cash.
The Gresham facility, Fab 4, will enhance Microchip’s short-term and long-term global manufacturing capacity and will help accommodate Microchip’s projected worldwide demand for its field-programmable microcontrollers, analog, Serial EEPROMs, and complementary microperipheral products.
Initial hiring is expected to reach approximately 60 people during pre-production phases. Over time, Microchip believes it could employ approximately 360 people as the facility reaches high volume manufacturing capacity over the next five to six years. The transaction is subject to results of Microchip’s due diligence and other closing conditions.
Closing of the transaction is expected to occur by the end of October; however, Fujitsu Microelectronics has the option to accelerate closing to the end of August 2002 upon completion of all closing conditions.
Situated on a 196-acre campus east of Portland, the Gresham campus comprises approximately 826,500 ft.2, including approximately 200,000 ft.2 of cleanroom space. The facility is designed to be capable of producing process technologies down to 0.13-micron and to support more than $1 billion in annual sales at full capacity.
The facility comes equipped with approximately 350 process tools and 170 support tools, which will reduce the time required to commence production. Microchip plans to initially produce 200mm wafers on its 0.5-micron and 0.35-micron process technologies at the Gresham facility. The facility will also house manufacturing operations, offices, meeting rooms, and support functions.
Microchip currently expects volume production to commence at the facility by July 2003.
Microchip currently intends to maintain its Fab 3 (Puyallup, WA) manufacturing facility until it is required for future production. Microchip is, however, evaluating its Fab 3 facility to determine if an impairment charge would be required.
Microchip will relocate the process equipment from Fab 3 to its wafer fab facilities in Tempe and Chandler, AZ, to further enhance the company’s short-term manufacturing capacity and to reduce its otherwise planned capital expenditures.
Following the closing of the acquisition of the Gresham facility, Microchip intends to relocate certain equipment from Fab 3 to Fab 4 to create a closer equipment match to the company’s Tempe wafer fabrication facility in order to facilitate a quicker process start at Fab 4.