MILPITAS, Calif.--California Micro Devices Corp. today announced a foundry agreement with China's Advanced Semiconductor Manufacturing Corp. (ASMC) in Shanghai, which will produce analog semiconductors and "Application Specific Integrated Passive" (ASIP) devices for the company.
Milpitas-based California Micro Devices said the agreement will enable it to move toward a "fab lite" model, giving the company greater flexibility in responding to high-volume demand for components in PCs and mobile systems. California Micro has begun transferring its manufacturing processes to the Shanghai foundry and expects the transition to be completed by the third quarter of 2002.
As a result, California Micro said it will restructure its manufacturing facilities and "focus product needs" between its plant in Tempe, Ariz., and the ASMC foundry. The company did not say if the restructuring would result in layoffs or cutbacks in its own facilities.
Shanghai's ASMC operates two wafer fabs--one fabricating bipolar devices on 5-inch substrates, and the other a CMOS line running 6-inch wafers. The bipolar fab is a class 10 frontend, while the CMOS line has a class 1 cleanroom. Together, the two fab lines have a monthly capacity of 480,000 wafers, according to California Micro.
The Shanghai foundry's business strategy is "well aligned" with California Micro, said Robert V. Dickinson, chief executive officer of the Silicon Valley company. According to the Milpitas chip supplier, the two companies have worked closely to transfer California Micro's thin-film process to the ASMC production facility for manufacturing of ASIP products.
"The markets and products that California Micro Devices participates in are an excellent fit with ASMC's wafer foundry business model," said Tony Liu, president of the seven-year-old foundry company.
Separately today, California Micro issued a mid-quarter guidance, calling for revenues to be sequentially up 7-to-14% from the prior quarter to a range of $7.5-to-$8.0 million. Prior to restructuring and other charges in manufacturing operations related to its move to foundry services, the company said it expects to report a net loss of $0.35-to-$0.29 per share in the current quarter, compared to a pro-forma loss of $0.40 in the prior three-month period.
"The sequential revenue growth and smaller loss we expect to achieve this quarter are encouraging signs," Dickinson said.