Cirrus Logic announced on Wednesday that Lucent Technologies has agreed to undertake full ownership and operational control of Cirent Semiconductor, the two companies' joint venture wafer fab in Orlando, Fla.
Under terms of the agreement, Cirrus Logic has reduced its capacity obligations in line with future
business needs, and Cirent will supply wafers to Cirrus through Dec. 31, 2000. After that, future
supply agreements will be negotiated separately.
The agreement is subject to regulatory approval under the Hart-Scott-Rodino Act and other
perfunctory procedural matters.
Last week, Cirrus Logic reached a similar accord with IBM, in which IBM will assume full
control of the MiCRUS joint venture in East Fishkill, N.Y.
Cirrus Logic plans to record a charge to earnings in the first fiscal quarter, which ended on June
26. The company expects to detail the financial impact of its joint venture agreements on or before
it reports fiscal first-quarter financial results on July 21.
Cirrus Logic is moving aggressively to cut manufacturing costs and return to its fabless roots.
"With these agreements, we have successfully achieved our goal to reduce manufacturing costs
going forward," said David D. French, president and CEO. "As we now return to the fabless
model, we're confident that we will be able to satisfy our customers' capacity and advanced
process technology needs for the foreseeable future."