IDT to sell its Oregon wafer fabrication facility

Under a foundry service arrangement with IDT, AOS has the option to acquire the wafer fabrication facility and related assets for $26 million. The anticipated sale is subject to the execution of a definitive asset purchase agreement with customary closing conditions between AOS and IDT. If the transaction proceeds according to plan, IDT estimates the parties would enter into an asset purchase agreement by the end of calendar year 2011 and the transaction would close by the end of January 31, 2012. "This announcement marks an important phase in IDT's transition to a fabless semiconductor company. Our system solution strategy requires access to a wide variety of process technologies and an ecosystem of outsourced manufacturing partners. Two years ago, IDT entered into a product fabrication agreement with TSMC and we are nearing completion of the transfer of our products and process technologies to their fabs." said Dr. Ted Tewksbury, president and chief executive officer at Integrated Device Technology. "The transformation to a fabless model will enable IDT to focus our resources and investments on innovative new product definition and development, while outsourcing manufacturing to industry leading foundry partners."