Maxim Buys a Wafer Fab, Announces Stock Split

Maxim Integrated Products, Inc., (Sunnyvale, CA) has undergone a two-for-one split of its common stock effected in the form of a stock dividend. At the same time, the company announced that it has acquired a sub-micron wafer fabrication facility in San Jose, CA, for a purchase price of approximately $42 million. The facility, currently controlled and operated by IC Works, consists of wafer fabrication equipment capable of processing sub-micron 6-inch wafers in 21,000 sq. ft. feet of cleanroom space. The fab is housed in a 67,500-sq.-ft building located on 5.5 acres that are also being acquired in the transaction.

Maxim says that the facility is well suited for manufacturing the newer advanced CMOS processes as well as high volume processes now fabricated in its Sunnyvale and Oregon fabs. Under an agreement, IC Works will transition fab management and capacity to Maxim over a six-month period and Maxim will sell BiCMOS wafers to IC Works on a longer-term basis.

Jack Gifford, CEO, commented on the purchase: "The acquisition of this new (one-year-old) facility will allow Maxim to accelerate its sub-micron process development activities and reduce its 4-inch wafer production, resulting in cost savings on approximately 20% of current capacity. The acquisition will also allow us to more quickly balance the Company's production capacity between geographically separated manufacturing locations."

Ilbok Lee, CEO of IC Works, commented: "By exiting the foundry business and selling the fab to Maxim, we will free up substantial resources which will allow us to focus on and invest in our IC business and strengthen our position as a leading supplier of clock driver ICs. Going forward, to ensure continued uninterrupted supply of our products we have expanded our strategic alliance with Samsung Electronics for the assured supply of sub-micron wafers and have also secured capacity with a major silicon foundry in Taiwan."

IC Works, a venture capital backed private company, is a leading supplier of semiconductor products based on PLL and mixed-signal technology. It has established a strong market position as a primary vendor of clock driver ICs. IC Works customer base includes major multinational clients in the personal computer, communication, mass storage and consumer electronics market segments.

CONTACT: Maxim Integrated Products, Inc., John F. Gifford, 408/737-7600