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LSI Logic to sell Gresham plant as it goes fables

Posted: 15 Sep 2005 ?? ?Print Version ?Bookmark and Share

Keywords:8-inch wafer? fables?

Semiconductor supplier LSI Logic Corp. said it would sell its 8-inch wafer manufacturing plant in Gresham, Ore., as it continues to transition to a fabless manufacturing strategy.

In making the announcement, LSI Logic said it would expand its relationships with major foundry partners and adopt a roadmap to produce semiconductors using 65nm and below process technologies on 300mm wafers.

No buyer has been found for the plant, which is capable of manufacturing designs at 0.13 micron and higher, according to LSI Logic president and chief executive Abhi Talwalkar.

Talwalkar who continues to put his stamp on the company after replacing Wilfred Corrigan last May. LSI announced in August it would restructure its business to focus on key markets, including custom integrated circuits, consumer products, and storage platforms and products.

But the company's adoption of a fabless global manufacturing strategy predates Talwalkar's regime. For the past few years, LSI Logic has jettisoned several fabs and formed or strengthened partnerships with foundry companies such as TSMC, UMC, SMIC, and Rohm Co. Ltd.

"Leading-edge foundries have consistently demonstrated that they have the capability to manufacture the advanced solutions required by our standard-cell ASIC, Platform ASIC and standard product customers," said Talwalkar in a statement. "Our customers are demanding technology leadership from LSI Logic in the drive toward 65nm process technologies and lower, and that is exactly the course we are going to follow.

LSI estimates it will record restructuring and other charges of approximately $75 million to $110 million in the third fiscal 2005 quarter for fixed asset write-downs, severance and other expenses associated with the planned sale of the Gresham plant.

The company anticipates incurring related restructuring charges of less than $3 million per quarter in the fourth quarter of 2005 and the first two quarters of 2006.

- Spencer Chin

EE Times

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