SVTC gets $34M boost from investors for analog, bio-devices, optical components

R&D foundry SVTC Technologies has received $34 million from existing investors Oak Hill Partners and Tallwood Venture Capital for future development in analog technology, bio-devices, and optical components.

By Gail Flower, Contributing Editor -- Electronic Business, 5/8/2009

San Jose-based R&D foundry SVTC Technologies, has received additional funding of $34 million from existing investors Oak Hill Capital Partners and Tallwood Venture Capital.

Founded in 2007, SVTC has expanded its services from semiconductor development to new areas for prototyping low-volume production of MEMS and high-voltage analog devices, photovoltaic applications for the solar industry, and analytical services for many high-tech industries.

The infusion of funding will allow the company to support customer interest in analog technology, bio-devices, and optical components, SVTC said.

“SVTC’s outsourced development services model gives device manufacturers the opportunity to convert fixed costs into variable costs, avoid significant capital expenditures and ultimately strengthen their balance sheets,” said Joseph Bronson, SVTC’s CEO, in a statement.

Cypress Semiconductor owned SVTC originally as a lab-to-fab facility for third-party engineering groups. Eventually, the focus at Cypress shifted to a new mix of programmable products, and it had few products that required bleeding-edge technology.

“We can do R&D more cost effectively as an SVTC customer as an owner,” said Cypress CEO TJ Rogers back in January 2007. Cypress that month sold SVTC to private equity firms Oak Hill Capital Partners and Tallwood Venture Capital for approximately $53 million.

Now, after the latest cash infusion, “Our goal at SVTC is to commercialize new and more efficient devices by enabling larger enterprises and entrepreneurs alike to develop the next generation of technology solutions in a cost-effective, IP-secure environment,” said Luis Arzubi, partner at Tallwood, in the statement.

SVTC has silicon development fabs in San Jose, and in Austin, with a full complement of 200-mm and 300-mm advanced CMOS and MEMS fabrication equipment. In another area of growth, SVTC Solar, through its Silicon Valley Photovoltaic Development center, provides PV manufacturers a way to develop silicon-based and thin-film technologies to accelerate time to market.

Technology investment is a trend this week. ASM International  received support from its customer, Intel Corp, when Intel Capital bought 4% of ASMI’s total common share capital.