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Elmos sells Dortmund wafer fab to Littelfuse

Elmos sells Dortmund wafer fab to Littelfuse

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By Peter Clarke

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Mixed-signal automotive chip supplier Elmos has agreed to sell its 200mm wafer fab in Dortmund to discrete components company Littelfuse Inc. for €93 million (about US$101.5 million).

Elmos had agreed to sell the wafer fab to MEMS maker Silex Microsystems for €85 million (about US$92.8 million) in December 2021 before have the deal prohibited on national security grounds by the German government (see Elmos considers legal action over German fab sale ban).

Littelfuse will acquire the Dortmund wafer fab together with approximately 225 employees. All other activities, including testing operations, will remain with Elmos.

The deal is not expected to close until December 31, 2024, and is subject to certain closing conditions and regulatory approvals, among them the investment control procedure under foreign trade law conducted by the German Federal Ministry for Economic Affairs and Climate Action. Elmos will retain full operational control over the wafer fab until the closing date.

In addition, Elmos and Littelfuse have agreed to enter into a multi-year capacity sharing arrangement with an initial term lasting through 2029, with Elmos buying defined volumes of wafers produced at the fab. This long-term agreement supplements the existing supply arrangements with Elmos’ other foundry partners.

“As a fabless company, Elmos will make even greater use of advanced technologies to deliver ground-breaking innovations in mixed-signal semiconductors. Elmos is already the global market leader for certain applications in the automotive industry. We want to use this strong position to shape our future growth,” said Arne Schneider, CEO of Elmos Semiconductor SE, in a statement.

“We are delighted for Littelfuse to further develop the wafer fab in Dortmund for power semiconductors. Our employees are now expecting a quick review procedure by the relevant authorities,” added Schneider.

Following regulatory approvals of the transaction, the buyer will make a payment of approximately €37 million. The remainder of the purchase price will be paid at closing.

“The acquisition of the 200mm Dortmund wafer fab is an important element in our long-term growth strategy for power semiconductors,” said Chad Marak, senior vice president and general manager of Littelfuse’s semiconductor business. “The Dortmund fab complements our current footprint, adding a highly experienced team and an efficient high-quality wafer processing operation. We are excited about the future prospects of our combined teams and capabilities, which I am confident will continue to position us for long-term profitable growth.”

Related links and articles:

www.elmos.de

www.littelfuse.com

News articles:

Elmos considers legal action over German fab sale ban

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