FREMONT, Calif. Cirrus Logic Inc. announced today that Lucent Technologies Inc. (Allentown, Pa.) has agreed to take 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 IBM Corp., 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 cutting manufacturing costsand 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."