VLSI to Invest in Malaysian Chip Plant

VLSI Technology Inc. said it agreed to invest $120 million in a $1.2-billion Malaysian semiconductor manufacturing plant, its first investment in a fellow chip maker. As part of the agreement, Wafer Technology (Malaysia) Sendiran Berhad, a government-sponsored group of Malaysian and foreign investors, will buy VLSI’s wafer fabrication line at the company’s headquarters in San Jose. VLSI will remain owner of the building and property. VLSI, which had planned to close the San Jose plant by the end of this month, has one other plant, located in San Antonio, and will use the Malaysian plant, scheduled for completion in 2000, for its high-capacity wafer production. VLSI said the facility in Malaysia will provide “vastly expanded” capacity. VLSI’s stock rose 31 cents to close at $32.31 on Nasdaq.