Cirrus Logic Inc has now offload the second of its two wafer fabrication joint ventures, and agreed that Lucent Technologies Inc takes full ownership of Cirent Semiconductor, based in Orlando, Florida. Earlier this month IBM Corp similarly agreed to take full control of the MiCRUS joint venture (CI No 3,687). Cirrus says it will now be returning to its traditional fabless model.
Cirrus, which had a 40% stake in Cirent, has reduced its capacity obligations but will continue to be supplied by Cirent until the end of 2000 – the same date as its reduced supply agreement with MiCRUS runs out. Cirrus will record a charge to earnings in its first fiscal quarter, which ended June 26, and says it will detail the financial impact of withdrawing from the two joint ventures either before or on the day it reports its first quarter results – July 21.
