Elmos sells its wafer fab in Dortmund to Silex Microsystems

Elmos will sell the wafer fabrication activities in Dortmund for EUR 77.5 million, plus around EUR 7 million for the work-in-progress inventory, bringing the total purchasing price to EUR 85 million, a press release from Elmos reads. Silex Microsystems is based in Järfälla, just outside of Stockholm, Sweden, and is a MEMS foundry with manufacturing operations in both Sweden and China. While the transaction is subject to customary closing conditions and regulatory approvals, the companies expect to close the deal in the second half of 2022. Elmos will transfer all assets and contracts that are directly linked to the wafer manufacturing into a newly founded stand-alone foundry operation. At closing, Silex will then acquire 100% of the shares of this entity – this includes the direct and indirect personnel under the leadership of the former management of the Elmos fab. Elmos will remain the owner of the building but will lease the clean room to Silex based on a long-term lease agreement. The testing activities for Elmos products will remain at Elmos Semiconductor SE. In addition, Elmos and Silex have entered into a long-term supply agreement until at least 2027, with Elmos buying processed wafers produced at the fab. “Although Elmos is on a growth path, the customer demand for our 350nm automotive products will decline in the long term, as smaller node size products will be used in the future. Today's agreement with Silex provides a promising and long-term perspective with new products and technologies for this location. We are very happy and convinced that we have found a very good and sustainable solution for our employees, our customers and the Dortmund location,” says Dr. Arne Schneider, CEO of Elmos Semiconductor, in the press release. “The acquisition of this automotive qualified 8-inch wafer fab will be an important milestone in our successful growth strategy. The Elmos fab, with its efficient high quality wafer processing operation and highly experienced team, is a perfect fit for our needs and opens up new possibilities for Silex. This transaction will help us in achieving our goal to become the industry's most advanced and efficient provider of advanced wafer foundry manufacturing. The Silex team is very proud to continue and expand the wafer fabrication operation at this location,” says Dr. Edvard Kälvesten, CEO and Founder of Silex Microsystems.