February 21, 2006 – Micron Technology Inc., Boise, ID, has purchased a 200mm fab and 19 acres of surrounding land in Nampa, ID, from ZiLog Inc., San Jose, CA, for $5 million. Micron aims to invest in facility improvements, as well as increase staff, in order to bring the site online by year’s end. The facility and property represents the remaining assets of former ZiLog subsidiary Mod III Inc.
“This acquisition allows us to move the final stages of image sensor silicon processing and other critical manufacturing steps from our Boise manufacturing operations to this new facility, which at the same time will free up space in our existing facilities,” said Steve Appleton, Micron chairman, CEO and president.
Of the $5 million proceeds from the sales, approximately $2.5 million will be distributed to holders of ZiLog Mod III, Inc. Series A Preferred Stock and $2 million will be retained by ZiLog, Inc. The rest will be absorbed as costs of the transaction, and costs to liquidate the Mod III business.