SVTC and ATDF Merge
ATDF and SVTC, two of the leading process-development foundries in the semiconductor industry, have decided to join forces. In doing so, they are creating a critical mass of equipment, talent and resources - enabling them to provide their combined customer base with seamless access to the world’s most advanced semiconductor processing and characterization equipment dedicated exclusively to the development of new semiconductor technologies.
Here’s what this merger means:
Synergy from similar backgrounds. Both ATDF and SVTC were incubated by semiconductor industry giants, both developed and grew into successful organizations - and their combination allows them to offer more than either could achieve separately.
ATDF, based in Austin, TX, is the R&D foundry subsidiary of semiconductor industry consortium SEMATECH. ATDF historically has had a large-company orientation, lots of equipment, established IDM connections and a technology-oriented pedigree from its roots in SEMATECH.
SVTC, newly independent this year, was spun off from Cypress Semiconductor. Based in San Jose, CA, in the heart of Silicon Valley, SVTC operates with a start-up orientation, venture capital connections and a production pedigree from its roots at Cypress Semiconductor.
The development foundry business model works. The individual success of ATDF and SVTC proves the value of providing process-development foundries to the semiconductor manufacturing market. They have been setting a trend for the industry: more semiconductor companies are dropping their in-house development foundries for the economic advantages of dedicated process-development foundries. By combining forces, ATDF and SVTC achieve crucial critical mass and create a tremendous "first mover" advantage that all but ensures their continued success.
The combination of the two companies is stronger in all ways. Each company will retain its own identity, facilities, resources, talent and customer base - while also gaining the distinct advantages of seamless operation across two locations, access to shared partners and resources across the globe, two very talented teams and an extended process library. The business models of the two companies are distinct and very complementary.
The merger will spur the growth of the semiconductor market. With Moore’s Law reaching its physical limitations, the only way to extend the increasing speed and lower prices promised by Moore’s Law is through advances in processes and materials science. And those are precisely the areas of expertise of ATDF and SVTC - and even more so of the merged companies.
Listen to the audio conference call with the key spokespeople discussing the merger and answering questions on December 4, 2007: WAV or MP3
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