MILPITAS, Calif. -- Completing its previously announced plan to become a fabless-IC design company, Xicor Inc. here today announced it has signed a definitive agreement to sell its Milpitas wafer fabrication plant and assets to Standard MEMS Inc. for approximately $12.5 million.
Under the terms of the deal, Standard MEMS will assume control of the fab and will make chips on a foundry basis for Xicor, a supplier of nonvolatile chips and other IC products. Standard MEMS, a Burlington, Mass.-based supplier of micro-electromechanical systems, will begin producing wafers for Xicor in the first quarter of next year.
The move will also turn Xicor into a fabless-IC design house. In addition to Standard MEMS, Xicor's other foundry partners include Sanyo, Yamaha, and Zentrum Mikroelektronik Dresden GmbH (ZMD).
"These agreements position us to complete our move to a fabless model," said Bruce Gray, acting president of Xicor. "We are working to complete the sale as soon as feasible so we can increase our focus on the design and marketing of new products."
The move also benefits Standard MEMS. "The addition of this 6-inch wafer fabrication facility, coupled with our 8-inch wafer fabrication joint venture with Philips Semiconductor, tremendously expands Standard MEMS' capability and capacity," said Nicholas Ortyl, president and chief executive of Standard MEMS.