|  | 01Dec94 UK: MOTOROLA TO BUY DIGITAL'S SOUTH QUEENSFERRY FAB - 
AMD/TSMC CONTRACT. 
Digital Equipment is on the verge of selling its wafer fab at 
South Queensferry, Edinburgh, to Motorola.
Sources at Motorola say the deal is expected to be signed today 
(Thursday), but would not comment on the price.
Motorola has been increasing its capacity over the last two 
years to meet demand, buying fabs from Western Digital and 
Harris, building fabs in Austin, Texas, and using foundries 
around the world.
The South Queensferry fab will not follow the traditional 
Motorola naming system of MOS1 to 15, but is expected to be a 
fab for specialist products similar to Motorola's COM1 and 2 
fabs in Phoenix, or its SMART 1 and 2 smart power fabs.
Motorola says the existing contracts at the site with AMD to 
make 486s and Mitsubishi to make the second source of Alpha 
chips will be honoured. But Motorola is looking to put its own 
process technology into the fab, which could include BICMOS.
AMD says it has a good working relationship with the major 
semiconductor vendors and, if there were to be a change in 
ownership at the fab, it was confident that the supply will not 
be affected in the short term.
AMD has signed a deal with Taiwanese foundry TSMC to make 486s, 
and expects to have one million devices from the company this 
year. Next year, that will be increased to 10m and will replace 
the supply from South Queensferry.
Digital Equipment in the US would not comment on the deal.
by Nick Flaherty. 
ELECTRONICS TIMES
 | 
|  | It's offical.  Here is the press release.
                  I N T E R O F F I C E   M E M O R A N D U M
                                        Date:     05-Jan-1995 15:05GMT
                                        From:     Press Releases
                                                  PRESS AT A1 at SALES at MRO
                                        Dept:     
                                        Tel No:   
                                        Doc No:   022978
TO: See Below
Subject: Semiconductor/Scotland                                                 1
       DIGITAL EQUIPMENT CORPORATION AND MOTOROLA SEMICONDUCTOR
                      SIGN AGREEMENT FOR SALE OF
             DIGITAL SOUTH QUEENSFERRY SEMICONDUCTOR PLANT
	Nikki Richardson		 Jeff Gorin		       
	Digital Equipment Corporation	 Motorola Semiconductor
	(508)493-6369			 (602)952-3854
	Andrew Spybey			 Tony Joyce
	Digital Equipment Corporation	 Motorola Semiconductor
	United Kingdom Public Relations	 East Kilbride, Scotland
	(1734)202180			 (1355)565240
					 
					 Shelagh Lester-Smith
					 Motorola Corp Public Relations
					 Slough, Berkshire, 
					 United Kingdom
					 (0753)57555
MAYNARD, Mass. -- January 5, 1995 -- Digital Equipment Corporation and 
Motorola Semiconductor today announced that they have signed an agreement 
to transfer ownership of Digital's manufacturing facility in South 
Queensferry, Scotland to Motorola. The plant, which is about 210,000 square 
feet and employs approximately 500 people, manufactures a variety of 
semiconductor products, including members of the Alpha microprocessor 
family. The transaction is expected to close in summer of 1995.
Under the terms of the agreement, Digital's South Queensferry employees 
will become Motorola employees at the transaction closing. In addition, all 
Digital semiconductor products, including the Alpha microprocessor, that 
are currently being manufactured in South Queensferry will continue to be 
fabricated there. And finally, Motorola will honor Digital's two-year 
foundry contract with AMD to produce AMD's Am486 microprocessors. By mutual 
agreement of Digital and Motorola, financial details about the transaction 
will remain confidential to the companies.
Ed Caldwell, vice president Digital Semiconductor, said, "This sale to 
Motorola supports Digital's strategy of investing in the future and 
deriving the maximum value and use from our facilities and investments. 
Digital's core competency, as both a captive producer and merchant vendor 
of semiconductors, is the design and manufacture of high-performance 
products. This agreement will enable us to offer uninterrupted production 
of our current offering while we prepare for future production of our 
high-performance semiconductors at our leading-edge facilities in Hudson, 
Massachusetts.
"The employees in South Queensferry have played an important role in 
Digital's successful semiconductor operations," continued Caldwell. "We are 
very pleased to have come to this agreement with Motorola, a company with a 
similar culture and values."
"Motorola is actively expanding its wafer fabrication capacity and regards 
Digital's South Queensferry facility as a superb asset," commented Fred 
Shlapak, senior vice president and general manager of the Motorola European 
Semiconductor Group. "This is a world-class facility with a highly capable 
workforce. Merging the talents of South Queensferry with those at our 
expanding East Kilbride facility will fuel the expansion of Motorola in 
Scotland to serve the growing demand from our customers in Europe and 
around the world."
Digital Equipment Corporation is the world's leader in open client/server 
solutions from personal computing to integrated worldwide information 
systems. Digital's scalable Alpha platforms, storage, networking, software 
and services, together with industry-focused solutions from business 
partners, help organizations compete and win in today's global marketplace.
Motorola is one of the world's leading providers of wireless 
communications, semiconductors,and advanced electronic systems and 
services. Major equipment businesses include cellular telephone, two-way 
radio, paging and data communications, personal communications, automotive, 
defense and space electronics and computers. Communications devices, 
computers and millions of consumer products are powered by Motorola 
semiconductors. The company was a winner of the first Malcolm Baldrige 
National Quality Award in 1988, in recognition of its superior company-wide 
management of quality process.
                                   ####
Note to Editors:  Digital and the Digital logo are trademarks of 
                  Digital Equipment Corporation.
CORP/95/765
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