San Jose, California-based Cypress Semiconductor Corp has stepped forward as the surprise buyer for what is left of Control Data Corp’s VTC Inc chip unit. VTC’s bipolar operations went in a management buyout in October (CI No 1,532) and CDC thought at that time that it would simply have to shutclose the Minneapolis-based CMOS operation.Cypress us paying a total of $14.7m for the VTC Class-1 semiconductor wafer fab and it reckons it got an out-and-out bargain. We bought a $26.5m semiconductor facility, land and some equipment for $11.5m and have also agreed to buy leased manufacturing equipment which costs $32m for just $3.2m paid in stages over the next two years, said Cypress chief T J Rodgers. The $60m VTC facility will be run as an independent subsidiary, known as Cypress Minnesota Inc. Control Data also agreed to incur up to $4.6m of the new company’s operating costs during the first two quarters of 1991, ensuring that the acquisition will have no impact on Cypress’ profit and loss statements before the third quarter, by which time the operation should be profitable. The VTC facility is an advanced, highly aut omated, 6 sub-micron wafer fab with 17,000 square foot Class-1 clean room. It is currently producing 100 wafers a week, and will ramp shortly to 500 a week or 25% of its ultimate capacity – making static RAMs. Cyp ress says it needs the extra capaci ty because its static RAM and Sparc microprocessor businesses are stron ger than expected, and bookings and backlog are at record levels; 75 VTC employees have accepted offers to work for Cypress Minnesota. Cypress says it is looking to derive $300m of annual revenue from VTC at peak to add to its present $400m a year.
