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Exhibit 10.20
UMC
ESSENTIAL TERMS FOR CAPACITY AND LOADING
14 February 2000
Rich Forte
Integrated Telecom Express, Inc.
2710 Walsh Ave
Santa Clara CA 95051
Dear Rich:
As requested, this term sheet outlines the essentials of the
mutual commitments between Integrated Telecom Express, Inc. (ITeX)
and United Microelectronics Corporation (UMC) with respect to capacity and
loading.
1. Subject to loading by IteX as described below, UMC will offer ITeX
rights of first refusal to a minimum quantity of eight inch wafers on the
following annual basis:
<TABLE>
<CAPTION>
------------------------- ------------------ ------------------ ------------------ ------------------
Annual Period 2000 2001 2002 2003
------------------------- ------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Wafers per Year 10K 20K 35K 50K
------------------------- ------------------ ------------------ ------------------ ------------------
</TABLE>
2. All wafer purchases will be at competitive pricing, and subject to UMC
standard terms, conditions and forecasting. Unless otherwise agreed in
writing, wafer quantities will be generally linear from month to month with
no abrupt changes.
3. Conditioned upon ITeX compliance with its commitments to order from UMC
during the period involved, UMC wafer prices to ITeX will be competitive with
the prices and terms that UMC offers in the contemporaneous time period for
wafers from the same fab with equivalent technology, quantities and cycle
times.
4. On a quarterly basis during the period January 1, 2000 to December 31,
2003, ITeX will offer to UMC purchase orders equal to or in excess of 75% of
the total ITeX foundry requirements for the relevant period(s).
CONFIDENTIAL -1- UMC(C)2000
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Term Sheet Outline
14 February 2000, page 2
5. This term sheet outlines all promises, representations and agreements
between UMC and ITeX concerning capacity and loading, and there are no
agreements, representations or promises concerning such matters other than as
stated here.
AGREED:
Integrated Telecom Express, Inc. United Microelectronics Corporation
/s/ Rich Forte /s/ Peter Chang
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Rich Forte, President Peter Chang, CEO Foundry Operations
