IR to Buy ESM Wafer Fab for $80 Million

March 18, 2002 by Jeff Shepard

International Rectifier Corp. (El Segundo, CA) has announced plans to acquire the semiconductor wafer fab of European Semiconductor Manufacturing (ESM, Newport, Wales), formerly known as Newport Wafer Fab, for $81.0 million. ESM was running the fab as an independent foundry. The company was placed into receivership at the start of the year. IR plans to invest a further $125.0 million in the fab over the next five years and it will support growth in the company’s mixed-signal and analog IC business.

"We expect to invest up to $125.0 million more over the next five years in line with growth needs and market conditions to bring this facility to full capacity. At this level, we expect the fab will be able to generate $750.0 million of revenue annually," said IR CEO Alex Lidow.