June 26, 2003 – In a move to outsource its wafer test operations and cut costs, Cirrus Logic has agreed to sell its semiconductor test operations assets, including analog and mixed-signal testers, handlers, and wafer probers, to ChipPAC for cash and services.

The two companies have also signed an agreement whereby ChipPAC will provide package development, wafer probe, assembly, final test, and distribution services to Cirrus Logic.

Outsourcing its test operations will save Cirrus Logic nearly $2 million per quarter, according to company president and CEO David French. Approximately 120 Cirrus Logic employees will be “impacted” by the deal over a four-month period, he added.

The assets, which will be transferred to ChipPAC’s operations in China, will add $14 million to $18 million in additional revenue annually, according to chairman and CEO Dennis McKenna.