According to EETimes Japan, Elmos Semiconductor SE, a manufacturer of automotive hybrid signal semiconductors, signed a binding contract with Littelfuse, Inc. of the United States, agreeing to sell the 200 mm wafer factory in Dortmund, Germany, at a net purchase price of about 93 million euros. According to the agreement, Litteluse will acquire the technical team of the wafer factory and its approximately 225 employees, and all other activities, including testing operations, will continue to be handled by Elmos.
Elmos is headquartered in Illinois, USA, mainly researching, manufacturing, and selling automotive motor drives, LED drives, and ultrasonic distance sensors. The factory that signed the sales agreement this time is a traditional semiconductor factory that produces 350nm process automotive semiconductors.
As early as December 2021, Elmos, which aims to become a fabless company, signed a sales agreement with Swedish MEMS foundry Silex Microsystems AB to transfer the factory for 85 million euros. However, in November 2022, the sale plan was blocked by the German Federal Cabinet on the grounds that it was deemed a threat to Germany's order and security. It is worth mentioning that Silex is a subsidiary of China Semiconductor Electronics.
Through the acquisition of the Dortmund wafer factory, Littelfuse has enhanced its capacity in power semiconductors to adapt to the high growth of power conversion application markets such as renewable energy, energy storage and electric vehicle charging infrastructure.
"This agreement is a milestone in the Dortmund semiconductor manufacturing industry. It will strengthen Germany's position as a high-tech country. As a Fabless company, Elmos will make more use of advanced technology to achieve breakthrough innovation in the field of mixed signal semiconductors. Elmos has become a global market leader in certain applications in the automotive industry. We hope to use this strong position to shape our future growth." Dr. Arne Schneider, CEO of Elmos Semiconductor, said in a press release.
Chad Marak, Senior Vice President and General Manager of Semiconductor Business at Litteluse, said, "This acquisition of the wafer factory is a key component of our long-term growth strategy in the power semiconductor field. It will add an experienced team and efficient, high-quality wafer processing business
Litteluse currently operates in over 20 countries and has approximately 18000 employees worldwide. In Germany, Litteluse operates multiple manufacturing, sales, and research and development bases.
The delivery of this transaction is expected to be completed on December 31, 2024, and is subject to certain delivery conditions and regulatory approvals, including foreign trade investment controls by the German Federal Ministry of Economic Affairs and Climate Protection (BMWK). Elmos will retain full operational control of the wafer factory until the transaction is completed.
In addition, Elmos and Litteluse have agreed to a clear long-term supply agreement, with an initial period lasting until 2029, after which Elmos will acquire a certain number of wafers produced by the wafer factory through purchase. This long-term agreement supplements the existing supply agreements between Elmos and other OEM partners to ensure that Elmos has the necessary production capacity to meet the needs of its existing customers.
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