April 6, 2006 – Taking another big step toward its fabless future, LSI Logic has sold its 200mm fabrication facility in Gresham, OR to analog semiconductor maker ON Semiconductor for $105 million in cash, and agreed to a multiyear deal to buy $200 million worth of wafers and test services from the company for at least the next two years.

The deal includes the entire 83-acre fab campus with multiple buildings and 98,000 sq. ft of cleanroom space, including a 200mm-capable toolset and equipment capable of producing 18,000 wafers/month using 0.18-micron and ultimately 0.13-micron process technologies. ON will hire “substantially” all of the employees at the site, with the rest continuing to work for LSI. The transaction is expected to close in about 45 days.

LSI Logic announced in Sept. 2005 that it would shift its operations to a “fabless” strategy, and expand its relationships with major foundry partners to push ahead into 300mm/65nm semiconductor production.