Term Sheet for Wafer Capacity and Loading Between Integrated Telecom Express, Inc. and United Microelectronics Corporation

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Summary

Integrated Telecom Express, Inc. (ITeX) and United Microelectronics Corporation (UMC) agree that UMC will offer ITeX rights of first refusal to purchase a specified minimum number of eight-inch wafers each year from 2000 to 2003, at competitive prices and under standard terms. ITeX must order at least 75% of its foundry needs from UMC each quarter to maintain these rights. The agreement covers all commitments regarding wafer capacity and loading between the parties for this period.

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EX-10.20 2 ex-10_20.txt EXHIBIT 10.20 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:
- ------------------------- ------------------ ------------------ ------------------ ------------------ Annual Period 2000 2001 2002 2003 - ------------------------- ------------------ ------------------ ------------------ ------------------ Wafers per Year 10K 20K 35K 50K - ------------------------- ------------------ ------------------ ------------------ ------------------
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 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 - ------------------------------ ----------------------------------- Rich Forte, President Peter Chang, CEO Foundry Operations