Micron Buys Zilog's CMOS Fab

BOISE, Idaho, Feb. 21, 2006 -- CMOS image sensor maker Micron Technology Inc. has bought a vacant fabrication facility in Nampa, Idaho, from microcontroller and universal remote control supplier Zilog Inc. Micron says it plans to use the facility for the final stages of digital camera and cell phone camera image sensor production and other fabrication processes.

Boise-based Micron purchased the 8-inch wafer fabrication facility and surrounding land from Zilog of San Jose, Calif., and its subsidiary, Zilog Mod III Inc., for $5 million. Zilog Mod III received about $3.9 million for the facility and 19 acres of the surrounding land, and Zilog received $1 million for its vacant 19 acres at the site. The sale to Micron represents the dispersal of the remaining assets of Zilog Mod III. In June 2004, as part of its strategy to become fabless, Zilog sold the majority of the Nampa facility's 200 mm manufacturing equipment to STMicroelectronics for $26 million and closed the plant.

In a written statement, Micron said it plans to invest in improvements and expects to bring the facility online by the end of the year. Micron also expects to hire an unspecified number of operators, technicians and support staff at the facility. According to its website, Micron is the largest private employer in the State of Idaho, with its more than 24,000 jobs accounting for nearly two-thirds of all the high-tech manufacturing positions in the state.

"This acquisition allows us to move the final stages of image sensor silicon processing and other critical manufacturing steps from our Boise manufacturing operations to this new facility, which at the same time will free up space in our existing facilities and allow us to continue to meet expanding demand for our products," said Steve Appleton, Micron chairman, CEO and president.

For more information, visit: www.micron.com