Altis Semiconductor is a joint venture between IBM and Infineon, which manufactures semiconductors based solely on the less advanced 130nm process. The company currently doesn't have many clients, nor the manufacturing rights or equipment needed to produce better tech. Nevertheless, its two owners are negotiating a deal with a low-profile entrepreneur to start transforming the infant manufacturer of semiconductors into something that will eventually rival the Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics Corp. and Globalfoundries.

“The plan is to turn Altis into a foundry. We will guarantee for a certain production volume but additional volume will be generated through Altis' own foundry activities. [IBM and Infineon] will fit Altis with a set of good technologies, e.g., embedded flash as well as to future technologies. They will be equipped very well,” Infineon Chief Executive Officer Peter Bauer said in an interview with EE Times.

After two years of similar but failed attempts to sell Altis to Russian investors, no less, things may finally be looking up for the venture. This time, the potential investor is French entrepreneur Germain Djouhri, who already expressed his intent to invest €79 million (about $118 million) into the plant, allowing for the eventual intended establishment of Altis as a successful foundry.

There are a number of hurdles that the company will have to overcome, the most notable of which is the reduced clientage. Although the manufacturer will likely inherit manufacturing rights from its creators, it does not possess the needed equipment to produce high-end circuitry. IBM and Infineon seem to be getting somewhere, though, considering that they have at least managed to find one investor.

“The contract details will be cleared very soon, but we cannot announce anything today,” Infineon Executive Vice President Reinhard Ploss added. As the overseer of Altis' production activities, he noted that the prospective investor had support from French politics (Djouhri's father reportedly had close connections with Jacques Chirac, France's former president).

The deal is believed to be closed in the next few weeks.