ST, GloFo interested in Newport wafer fab, says report

News | June 11, 2023

By Peter Clarke

Analog wafer Power Management

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Chipmakers STMicroelectronics and GlobalFoundries have both expressed a potential interest in buying a wafer fab in Newport, South Wales, according to a Telegraph newspaper report.

Although not operating at the leading edge and small, the power fab is the UK’s most advanced chip manufacturing facility.

The two chip companies are amongst as many as 10 potential bidders now that Nexperia BV (Nijmegen, The Netherlands) has been told it must sell the 200mm wafer fab. However, it is quite usual in such circumstances for competitors to make enquiries and gain insight into a firm’s costs, liabilities and operational details before walking away from a purchase.

So a high profile acquisition is not necessarily the most likely outcome.

ST and GlobalFoundries have just agreed details on a jointly-operated 300mm wafer fab to be constructed in Crolles, France (see GloFo, ST finalize terms for €7.5 billion wafer fab at Crolles).

Private equity

Nexperia acquired Newport Wafer Fab Ltd. in July 2021 despite concerns raised at the time over Nexperia’s ownership (see China’s Nexperia buys Newport Wafer Fab amid concerns).

In November 2022 the UK government ruled that Nexperia – which is owned by Chinese company Wingtech – should sell at least 86 percent of its stake in the South Wales wafer fab under national security legislation. Nexperia has appealed against the ruling (see Nexperia lawyers up for fight over Newport Wafer Fab).

Drew Nelson, a former CEO of IQE plc, was involved with a company called Neptune 6 Ltd. that acquired the Newport-based facility in 2018 with other investors from its then German owners Infineon Technologies AG.

It has been reported that a private equity group Palladian Investment Partners LLP, Irish venture capital firm Atlantic Bridge and Headlight Technology Partners Ltd. are each interested in taking stakes in a newly-independent Newport Wafer Fab.