1
EXHIBIT 99.1
FOR IMMEDIATE RELEASE JUNE 18, 2001
LSI LOGIC CONTACTS: X-FAB CONTACTS:
MEDIA RELATIONS USA
Kevin Brett Dagmar Berendes
+1-408-433-7150 +1-408-749-9112
kbrett@lsil.com dagmar@thinkbold.com
Investor Relations Germany
Diana Matley Thomas Hartung
+1-408-433-4365 +49-361-427-6160
diana@lsil.com thomas.hartung@xfab.com
CC01-72
LSI LOGIC TO SELL MIXED-SIGNAL COLORADO SPRINGS SEMICONDUCTOR MANUFACTURING
FACILITY TO X-FAB
COLORADO SPRINGS, CO -- LSI Logic Corporation (NYSE: LSI) and X-FAB
Semiconductor Foundries AG today announced the signing of a definitive agreement
calling for X-FAB to purchase LSI Logic's semiconductor manufacturing facility
for approximately $120 million.
X-FAB of Erfurt, Germany provides mixed-signal and advanced analog foundry
services. The company is purchasing LSI Logic's 1635 Aeroplaza Drive facility.
The mixed-signal manufacturing facility, which can produce about 3,000
eight-inch wafers per week, employs 0.35-micron, 0.50-micron, 0.60-micron
process technologies and has demonstrated 0.25-micron capability.
Last April, LSI Logic announced its plans to close the Colorado Springs facility
in direct response to the adverse economic climate and the widespread inventory
correction in worldwide communications markets.
2
"Immediately after announcing our intent to close the Colorado Springs facility,
we initiated our efforts to locate a semiconductor manufacturer looking for an
eight-inch, mixed signal fab," said Joe Zelayeta, LSI Logic executive vice
president of Worldwide Manufacturing. "As a result of this successful effort,
many of our employees impacted by the closure decision will have the opportunity
to continue working at the Aeroplaza facility. This is a win-win proposition for
all of the involved parties."
"The purchase of the Colorado Springs facility is consistent with our technology
roadmap, which focuses on producing advanced analog and mixed-signal
semiconductor solutions for our customer base," said Hans Juergen Straub, X-FAB
president and chief executive officer. "This agreement provides us with an
eight-inch, 0.35-micron and 0.25-micron capable facility that is staffed by an
experienced and dedicated workforce. This facility is well suited for our mixed
signal and advanced analog technology needs."
Zelayeta said that LSI Logic is consolidating its manufacturing capacity at its
two major sites in Gresham, Oregon and Tsukuba, Japan. He said that LSI Logic
has more than adequate advanced manufacturing capacity to meet the anticipated
demand for its ASIC and standard product solutions.
The agreement is subject to the satisfaction of customary closing conditions and
regulatory approvals including the Hart-Scott-Rodino Antitrust Improvements Act.
3
SAFE HARBOR FOR FORWARD LOOKING STATEMENTS:
The statements by LSI Logic management and the above statements regarding future
manufacturing plans, personnel numbers, employment estimates, benefits, plant
consolidations, restructuring and other charges, severance and other expenses
and their recognition, revenues, and manufacturing capacity made in this news
release include forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the Securities and
Exchange Act of 1934, as amended. The forward-looking statements included in
this news release are made only as of the date of this release and the company
undertakes no obligation to update the forward-looking statements to reflect
subsequent events or circumstances. The company's actual actions and results in
future periods may be materially different from any suggested in this news
release. The company urges the reader to consider the risks and uncertainties to
which the company is subject and which may cause the company's actions and
actual results to differ materially from the expectations of the company or its
management. Such risks and uncertainties may include, but may not necessarily be
limited to fluctuations in the timing and volumes of customer demand, the rate
of depletion of customer inventory buildup, the company's ability to obtain
needed licenses from third parties and the company's achievement of revenue
objectives and other financial targets. Other risks and uncertainties include,
but are not necessarily limited to the timing and success of new product
introductions, the continued availability of appropriate levels of manufacturing
capacity and the realization of benefits from the company's strategic
relationships and investments. The extent to which the company's plans for
future cost reductions are realized may also impact its future performance. The
company operates in an industry sector where securities' values are highly
volatile and may be influenced by economic and other factors beyond the
company's control. In the context of forward-looking information provided in
this news release, reference is made to the discussion of risk factors detailed
in the company's filings from time to time with the Securities and Exchange
Commission, including but not limited to filings made during the past 12 months.
ABOUT LSI LOGIC
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of
communications and storage semiconductors for applications that access,
interconnect and store data, voice and video. In addition, the company supplies
storage network solutions for the enterprise. LSI Logic is headquartered at 1551
McCarthy Boulevard, Milpitas, CA 95035, 866-574-5741 (within U.S.), 719-533-7679
(outside U.S.), http://www.lsilogic.com.
ABOUT X-FAB
X-FAB, with headquarters in Erfurt, Germany, is a European, independent
Mixed-Signal Foundry. The company has with X-FAB Texas Inc. (Lubbock, Texas)
three manufacturing sites with a combined capacity of more than 12,000 six-inch
wafers per week. X-FAB has more than 800 employees worldwide.
# # #
Editor's Notes:
1. All LSI Logic news releases (financial, acquisitions, manufacturing,
products, technology etc.) are issued exclusively by PR Newswire and are
immediately thereafter posted on the company's external website,
http://www.lsilogic.com.
2. The LSI Logic logo design is a registered trademark of LSI Logic
Corporation.
3. All other brand or product names may be trademarks or registered
trademarks of their respective companies.