LSI Logic Corporation to Outsource Gresham Manufacturing Facility Ion Implantation Capacity to Implant Center, Inc.

July 05, 2000 - San Jose, CA

SAN JOSE, CA - Implant Center Incorporated and LSI Logic Corporation (NYSE:LSI) announced today the conclusion of an outsourcing agreement in which LSI Logic will use Implant Center for ion implantation for the company's state-of-the-art Gresham, Oregon manufacturing facility.


The long-term contract includes the acquisition by Implant Center of all ion implanters currently installed at LSI Logic’s Gresham manufacturing facility.

During the transition period, Implant Center will assume full ion implant manufacturing responsibilities on-site at LSI’s Gresham facility. Under the terms of the agreement, a phased move of the existing tool set will be made to Implant Center’s new 50,000-square foot state-of-the-art facility in the Portland, Oregon area. This move will be complemented by the installation of additional tools that Implant Center has purchased to meet the growing capacity requirements of LSI Logic and other regional semiconductor manufacturers.

“Our Gresham-specific outsourcing agreement with Implant Center provides LSI Logic with a cost-effective means of securing ion implantation services, while freeing up valuable manufacturing facility space in order to increase capacity for the manufacture of advanced communications chip solutions,” said Norm Armour, LSI Logic vice president of Gresham Operations. “The global semiconductor industry is being driven by the rapid expansion of worldwide networking, wireless and broadband markets. LSI Logic wants to ensure that its strategic manufacturing assets are being utilized as efficiently as possible in order to respond to challenges associated with the global communications revolution.”

“We have worked very closely with LSI Logic during the past year to develop and refine a plan that will ensure a smooth transition of the implant operation at LSI Logic’s Gresham facility,” said Tim Townley, Implant Center vice president of Operations. “We look forward to executing this plan which will form the foundation of a long-term partnership with LSI Logic and other semiconductor manufacturers in the region”.

“This agreement is indicative of Implant Center’s strategy to transition from a service provider role to a full outsource implant foundry operation for semiconductor manufacturers. This operation will be the first regional expansion for Implant Center outside the Bay Area with more sites planned in the coming months.” said Ray Krummen, Implant Center president and chief executive officer. “Implant Center continues to develop its capabilities to provide high quality foundry outsourcing through certification to ISO-9002 Quality Standards and conformance to QS-9000 Quality System requirements.”