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Sipex announces Chinese strategic alliance

Posted: 08 Sep 2005 ?? ?Print Version ?Bookmark and Share

Keywords:hangzhou silan integrated circuit? wafer? silan-ic?

Sipex Corp. has signed a strategic relationship agreement with Hangzhou Silan Integrated Circuit Co. Ltd (Silan-IC). As part of the planned relationship, Sipex will close its Milpitas wafer fabrication operations. The products currently manufactured in the Milpitas fab will eventually be manufactured in Silan-IC's facility located outside of Shanghai, China. Silan-IC will also acquire a substantial portion of the equipment of the Sipex fab.

According to Ralph Schmitt, CEO of Sipex, the Milpitas fab made significant operational improvements over the last few years. However, the product needs and the process capability of the fab are no longer aligned, and therefore not economically feasible to keep the fab operational.

Upon the execution of definitive agreements, Sipex's current Bipolar and BiCMOS processes will immediately start to be transferred to Silan-IC. The company expects the transition to take 9 to 12 months. Sipex further expects to license certain products to enable Silan-IC to sell in the China marketplace.

"This relationship is the start of the new reality of our business as China becomes a significant manufacturer and procurer of analog products," said Schmitt. "We need a new progressive model to be successful in the fastest growing market in the world." Sipex and Silan-IC also expect to cooperate in product designs in the future.

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