Intersil Outsources ChipsIntersil Outsources Chips

MILPITAS, Calif. -- Intersil Corporation (Nasdaq:ISIL), a world leader in the design and manufacture of high performance analog and wireless networking solutions, today announced a move to add significant out-sourced foundry capacity to meet the high demand for Intersil power solutions that support growing computing and information appliance markets. A memorandum of understanding has been signed with AMI Semiconductor (AMIS) to secure identical-process foundry capacity that duplicates Intersil's Palm Bay, FL high-run power ICs production. This move to self-second source high-demand products will ensure uninterrupted product flow to Intersil's customers.

Intersil's duplicate foundry capacity will be located at AMIS's manufacturing facilities in Pocatello, Idaho. Ramp-up time will be in concert with ramping computing, information appliance, broadband and telecom markets that Intersil's Endura(TM) power ICs support.

"As we completed a very successful 2002, Intersil surpassed the half billion mark for the total number of Endura power ICs shipped," said Rick Furtney, vice president and general manager of Intersil's High Performance Analog Product Group. "We shipped over 300 million power ICs in 2002 alone. Our track record clearly indicates a rapidly accelerating trend. That is why we have entered into an agreement with AMIS - to secure the needs of our growing customer base going forward. AMIS is a well-known and highly capable semiconductor manufacturer. We have great confidence in them as a second source for our high-run power products."

"We're very pleased to have entered into this strategic, long-term second source partnership with a technology leader like Intersil," said Rocke Acree, foundry marketing manager for AMI Semiconductor. "Our ability, experience and expertise in efficiently transferring processes from other manufacturing sites enables us to help ensure Intersil's success in its key end markets."

Intersil Corp.