Amsterdam-based Philips Semiconductors, a subsidiary of Royal Philips Electronics, recently announced that it had reached an agreement with IBM to acquire its MiCRUS 8-in. wafer fab semiconductor operation in East Fishkill, N.Y. for an undisclosed amount. The deal will increase Philips' total semiconductor capacity by over 12.5%. Philips plans to invest approximately $100 million over the next few years to increase its capability and capacity. "Buying this fab is a step function in manufacturing, increasing output in the shortest time possible," says Stuart McIntosh, Philips executive vice president and chief operations officer. "We benefit from buying a fully operational plant, thus getting the benefit of a high-caliber workforce." The acquisition of this new plant brings Philips' total expansion investment to more than $2 billion of wholly owned or joint-venture fabs throughout the world. Philips will have six fully operational 8-in. wafer fabs by the end of 2000.