Vishay recently announced that it has completed the acquisition of Newport Wafer Fab. The $177m (£140m) buyout finally gets successful after years of dubiousness.
Vishay is also known to partner with local universities and others in the UK to enhance its research and development efforts on power compound semiconductors. Technology know-how from a potential reintroduction of compound semiconductor activities at the Newport site.
The deal ends years of uncertainty following the purchase of the business by Nexperia in July 2021.
To complete the deal Vishay acquired a 100% interest in the legal entity Neptune 6 Limited, which is wholly owned operating subsidiary, Nexperia Newport Limited.
The location of the site could facilitate access to technological expertise.
Vishay Intertechnology to Acquire Nexperia’s Newport Wafer Fab.
Vishay and Nexperia B.V. in last year Novemeber to ink an acquisition agreement. Under which, Vishay was stated buy Nexperia’s wafer fabrication facility and operations located in Newport, South Wales, U.K. for $177million in cash.
Terms UK Government Asserted for the Vishay, Newport Wafer Fab Deal
- The acquisition deal between Vishay and Newport Wafer Fab has got an UK Government nod with Deputy Prime Minister Oliver Dowden sharing the purchase approvals.
- If Vishay in future plans to leverage third party participation like sale, transfer, or lease agreements, the UK government has to be kept into cognizance.
Vishay’s Extends Decarbonization Efforts With this Newport Wafer Fab Deal
- Newport Wafer Fab is known to be UK’s one of the major manufacturer of semiconductors.
- With Vishay acquiring, the American discrete semiconductors and passive electronic components, Vishay plans to establish into a strategic manufacturing centre while focusing on Net Zero commitments.
- Vishay is also known to partner with local universities and others in the UK to enhance its research and development efforts on power compound semiconductors.
- Technology know-how from a potential reintroduction of compound semiconductor activities at the Newport site.
The location of the site could facilitate access to technological expertise. - South Wales-based compound semiconductor cluster will be accessible for Vishay.
Key Comments on the Acquisition
Marc Zandman, Executive Chairman of the Vishay Board, said: “We welcome the highly skilled and dedicated employees at the Newport wafer fab into the Vishay family.” “Vishay is committed to investing in Newport to grow capacity, and to accelerate our SiC and GaN production and technology development. We look forward to the contributions of Newport’s employees to our shared success.”
“The acquisition of Newport aligns with the strategic shift the board envisioned with its decision to appoint new leadership [in early 2023],” says Vishay’s executive chairman Marc Zandman.
“Vishay set an ambitious goal of investing approximately $1.2bn in capacity over a three-year period in order to position the company to seize the opportunities created by the megatrends of e-mobility and sustainability needed for a Net Zero economy,” said president & CEO Joel Smejkal on 8 November, when Vishay announced the acquisition. “While this transaction is supplemental to our capex investment strategy, adding Newport Wafer Fab to our manufacturing footprint will be instrumental to achieving our goal of expanding capacity for our customers and to accelerating our SiC [silicon carbide] strategy,” he added at the time. “Our goal is to safeguard the positions of the highly skilled and dedicated employees and to invest the necessary capital to set up production for our SiC trench MOSFETs and diodes. With its solid balance sheet and ample liquidity, Vishay will immediately bring stability and its reliable cash flow generation to ensure the facility becomes a fully operational and profitable fab,” he reckoned.
Neptune 6 Limited is expected to be renamed “Vishay UK Holdings Limited” and Nexperia Newport Limited is expected to be renamed “Vishay Newport Limited”.
