Intel invests in German chip manufacturer
The chip giant takes a 25 percent stake in Communicant Semiconductor Technolagies, which will begin shipping
semiconductors in 2003
Inte has taken 25 percent stake n# German manufacture that il eventually produce
emicondster forthe chip gant and others
Communtcant Semiconductor Technologies, based in what wes formar Esst Grmany, wl essentally
acts foundy.or contact manufecurer. The company will adopt Ins manufacturing processes
Under aliense, an tel Spokesman said Thursday. Communiant’ factory, under constuction, vl
bein shipping chins in 2003,
‘ayMicteiKanalts _Akhnough Communicant wll make 0 varety ofchps, wil specalzein communication chips mado out
of stcon germaniumearoon, anew, otic cp mater primal sed in new high-speed networking
hips Sion germanium chips have been around for years, but s SEIRTSMENINESEI chips are
Despite the semconducte sump, fundies are expected to continue to gfow in influence, net Se, a
the foreseeable future. Most chipmakers cannot afford o bul ther wn fais elites, ofa,
which can cost more than $2 billion each
‘As 2 esu chipmakers are farming cut the work to conparses such os Taiwan Semiconductor
Manufectuing, The foundry business agai located n ie
‘though remain the wor’ largest chipmaker nt has begun to use founds recent years
Many f te companies that ne hs acquled in the past wo yearshad pre-existing foundry
rangement that remain in place
Through ts investment in Gommanicant Inte wl own 25 percent of the company and hve heights
to reserve 20 percent ofthe autut laden, ne wil recive yates forthe technology beense
(ther major avestes include IMP, en nstute funded by the Geman government thats providing the
slican gemanum-caroon technology, andthe government of Duba:, which saggtesshely counting the
gh-tech indusuy wih tx breaks and other incentives
Communica foundry willbecome operatonain the hid quater of 2002, wth chips coming out of
the acon ona commercial bass inthe fist quarter of 2003. The ound wil be locate in Frankfurt
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