The Oregon plant is the last remaining fab at IDT. The move is aimed to cut costs at the chip maker. Under the terms, IDT and TSMC have entered into a foundry agreement. The plan is to transfer product fabrication processes and related activities currently running in IDT's Hillsboro, Ore.-based fab to TSMC's plants.

The product processes and geometries transferred under this agreement include existing IDT products currently manufactured at the Fab 4 facility in Hillsboro at 0.13-micron process technology and above.

These processes and products will be transferred to TSMC over the ensuing two years. The agreement does not include transfer or sale of the process equipment or the IDT facility located in Hillsboro.

IDT intends to exit the Hillsboro wafer fabrication facility at the end of the transfer period and has engaged a third-party to market the facility to potential buyers that can continue fabrication operations.

At present, there are no plans for layoffs at the fab right now, according to a spokesman for IDT. At the fab, IDT employs a ''few hundred'' people, he said. Depending on the outcome of the fab, the company could take a charge of $10-to-$25 million.

By: DocMemory
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