SAN FRANCISCO Analog IC supplier Sipex Corp. said Monday (Feb. 27) it has signed a definitive foundry services agreement with Hangzhou Silan Microelectronics Co. Ltd. and Hangzhou Silan Integrated Circuit Co. Ltd. Financial terms were not disclosed.
According to Sipex (Milpitas, Calif.), the agreement covers foundry manufacturing, product licenses, process technology transfers and fab equipment sales.
Sipex said last September that it would cease manufacturing in Milpitas and outsource to Silan.
"We are pleased with the progress of transferring our process technologies to Silan," said Ralph Schmitt, Sipex CEO, in a statement. "They have been a great partner to date, and with the formalization of our relationship I expect we will be even more successful together."
Sipex said Silan has already seen excellent yielding material out of two different process technologies. The expectation is to complete all process qualifications by the end of the year, Sipex said. During the transfer, production at the Sipex Milpitas fab has continued, the company said.
Silan currently has two 5-inch fab lines that are running 20,000 IC wafers and 20,000 discrete product wafers per month, according to Sipex. Plans call for the production capacity of the Silan fab to ramp to 34,000 wafers per month, the company said. Sipex' equipment will be sent to Silan after the transition is complete, Sipex said.
Sipex said it expects to further resolve its strategic partnership with Silan-IC into other areas.