Report: Jazz Semi shopping for 200mm fab

September 14, 2007 – Jazz Semiconductor is looking for either a partnership or acquisition to gain access to 200mm manufacturing capabilities, as its internal capacity utilization surges beyond 90%, according to a report by Digitimes.

The site quotes Chuck Fox, VP of sales and marketing, saying that the foundry is seeing “significant growth” from handset, wireless, and other segments, with capacity utilization spiking to 87% in 3Q vs. 60% in 2Q, and he projects it will surpass 90% by year’s end and “run tight” into 2008 as well.

Jazz, a spinout of Conexant Systems and last year bought out in a $260M private equity deal, has manufacturing supply deals with China’s Advanced Semiconductor Manufacturing Corp. (ASMC) and Shanghai Hua Hong NEC Electronics Co. Ltd. (HHNEC), which represent more than half of its output. Jazz also has a deal with Fujitsu to make 90-65nm SoC products for RF CMOS devices at Fujitsu’s 300m fab in Mie Prefecture, Japan, Digitimes noted.

Fox said that the firm is looking for a 200mm operation “in a region where production costs are low,” though that does not necessarily mean it will be in Asia.


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