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Re:

Peregrine Semiconductor Acquires IDT’s Sydney Wafer Fab

Peregrine took control of IDT’s Sydney wafer fab in 2000 to expand UTSi production and RF-chip capacity; the deal’s financial terms were not disclosed.
From TheFinanceBase Team2 min to read
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Peregrine Semiconductor completed its acquisition of IDT’s wafer-fabrication facility in Sydney, Australia, on July 10, 2000. The purchase brought the site under Peregrine’s control, but the companies did not disclose the financial terms.

What Peregrine acquired from IDT

The acquired operation was Quality Semiconductor Australia, a wholly owned subsidiary of Integrated Device Technology (IDT) that operated the Sydney wafer fab. After the deal, Quality Semiconductor Australia became a wholly owned Peregrine subsidiary. By September 26, 2000, the site was operating under the name Peregrine Semiconductor Australia.

The change was therefore more than a purchase of equipment: Peregrine took control of an existing manufacturing operation. Its plan combined production of Peregrine’s own chips with continued foundry services for outside customers.

Why Peregrine wanted the Sydney fab

Peregrine planned to begin manufacturing its patented Ultra-Thin Silicon (UTSi) CMOS technology at the facility. The added capacity was intended to support highly integrated RF synthesizer and transceiver chips for wireless products. The company also planned to keep offering 0.50-micron CMOS foundry services, preserving the site’s role as a contract manufacturer.

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That combination mattered to Peregrine’s growth strategy: the company could use the fab for its own RF integrated circuits while continuing to serve foundry customers. At the acquisition announcement, CEO Stav Prodromou called the deal “a very significant milestone in the growth of Peregrine” and cited strong demand for high-performance communications ICs.

What was disclosed about the price?

Peregrine and IDT did not disclose the financial terms. There is no confirmed purchase price in the public announcements cited here, so a dollar figure should not be inferred from the transaction.

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How the fab’s technology roadmap developed

The acquisition announcement described ongoing 0.50-micron CMOS foundry services and the planned introduction of UTSi production. In September 2001, ASML announced that its lithography, track and thermal systems would help upgrade the Sydney facility from 0.5-micron Class 10 to 0.25-micron Class 1 capability. Volume production was scheduled for the third quarter of 2001; that schedule was a target, not confirmation in the announcement that production began on time.

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Later manufacturing milestones

Peregrine’s 2005 certification announcement included the Sydney wafer fab within the company’s ISO-9001:2000- and AS-9100-certified RF-IC design and manufacturing system. In 2007, Peregrine and OKI said that, combined, their manufacturing capacity was producing 2.5 million UltraCMOS devices per week. That later figure applied to the two companies collectively, not to the Sydney fab alone.

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