For $105 Million LSI Logic to sell its Gresham, Oregon semiconductor manufacturing facility to ON Semiconductor. The agreement calls for ON Semiconductor’s subsidiary to purchase the 83 acre wafer fabrication facility campus, consisting of multiple buildings with approximately 500,000 square feet of floor space, including an estimated 98,000 square feet of cleanroom space. The assets to be purchased also include a 200 millimeter-capable toolset and equipment that can produce 18,000 8-inch wafers per month.Under the terms of the agreement, ON Semiconductor’s subsidiary will offer employment to substantially all of the LSI manufacturing employees based at the Gresham site, with the remaining non-manufacturing workforce expected to continue their employment with LSI.

ON Semiconductor’s subsidiary will also enter into additional agreements with LSI, including a multi-year wafer supply and test agreement, intellectual property license agreement, transition services agreement and a facilities use agreement. In September, 2005, LSI announced plans to adopt a fabless manufacturing strategy to better serve its global customer base, reduce production costs, and adopt leading-edge process technologies. The company also announced it would seek to expand its working relationships with major foundry partners and adopt a roadmap leading to production of advanced semiconductors utilizing 65-nanometer and below process technology on 300-mm, or 12-inch wafers.