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is leaving the foundry services business and plans to sell its Santa Clara, Calif., wafer fabrication facility.

The sale of the plant is part of Semtech's plan to outsource the production of silicon wafers. The semiconductor company wants 90% of its silicon to be purchased from outside vendors by the third quarter of fiscal 2002. Only certain proprietary processes will continue at the company's other wafer facility.

Semtech, a semiconductor maker based in Newbury Park, Calif., said it was holding discussions to sell the Santa Clara plant, and indicated that jobs would be cut, but the company didn't provide further details.