SVTCATDF

SVTC and ATDF Merge - FAQ

What is the reason for the merger of SVTC and ATDF?

Together, we provide an alternative to process development that simply did not exist even five years ago. We offer the experience and capabilities to help companies develop and commercialize new semiconductor technologies at a time when more and more companies are deciding to scale down or close their own development facilities. Process technology will again play a key role in competitive differentiation across a wide range of industry applications.

Why are the venture capital firms Tallwood and Oak Hill investing in development fabs?

Because there is a clear market need for process development foundries now. Many semiconductor companies, large and small, have decided that working with a development foundry is the most cost-effective way to bring a fabrication process to a “production-ready” status before transferring to a production foundry.

When does the merger take effect?

The end of 2007.

Will both foundries continue to operate?

Yes, both foundries will continue to operate at their current locations and will keep their respective business relationships with customers and partners.

How will the company management change?

Dave Bergeron will continue as the CEO of SVTC and Dave Anderson will remain General Manager of ATDF.

How many people work in the Austin facility? How many in San Jose?

There are approximately 120 people working in San Jose and more than 200 in Austin.

Will the current employees keep their jobs?

We expect so, and we have every intention of growing the business and creating even more jobs.

How do the ATDF and SVTC business models compare?

There are many commonalities that have emerged over the past several years. Because of its association with SEMATECH, ATDF historically has had a wider range of customers and services than SVTC.

In general, ATDF could be characterized as having a large-company orientation, more equipment, established IDM connections and a technology-oriented pedigree from its roots at SEMATECH. SVTC, newly independent this year, operates with a start-up orientation, venture capital connections and a production pedigree from its roots in Cypress Semiconductor.

Will the merger affect customers? How?

Yes, and in positive ways. Our customers will have access to two of the world’s most advanced semiconductor processing and characterization centers dedicated exclusively to development. We intend to make the merger seamless to customers, and we expect that customer relationships will continue as before.

For customers with development projects at either ATDF or SVTC, customer IP will remain confidential to the respective site and site personnel. Additionally, customers’ ways of working with respect to IP development will remain the same as before the merger.

In a nutshell: Post-merger, customers will find things the same – only better.

What are some specific benefits to customers of the merger?

Customers will have easier access to a broader range of services, engineering support and characterization across the two sites. There will be greater process capabilities available under one "roof":

Starting in 2008, customers also can take advantage of prototype production capability, including a bridge to high-volume production and production for very low volumes (e.g., aerospace applications).

Will the merger affect established partnerships (equipment manufacturers, foundries, etc.) of ATDF and SVTC?

We expect these to remain intact. If it turns out there are any conflicting/competitive relationships, we will discuss these further with the respective parties.

What is SVTC’s history?

SVTC started in July 2004 as a division of Cypress Semiconductor. Cypress sold SVTC to Tallwood Venture Capital and Oak Hill Capital Partners in March 2007. Since becoming independent, SVTC has added management, technical and equipment capabilities and has continued to grow its business.

What is ATDF’s history?

ATDF has served as SEMATECH’s development fab since 1988. In 2004, SEMATECH launched ATDF into the commercial mainstream as an independent, for-profit subsidiary. Since then, ATDF has significantly expanded its global clientele – ranging from small start-ups to leading IDMs – in both emerging technology development and wafer services.