SMIC Subsidiary LFoundry Changing Ownership
LFoundry Srl and SMIC (Semiconductor Manufacturing International Corporation) reported that Jiangsu CAS-IGBT Technology Co., Ltd., has agreed to purchase 100% of the shares of the SMIC subsidiary LFoundry.
The Italian firm, LFoundry, offers 150nm and 110nm processing and IP for the fabrication of components for low-power, high-voltage, and RF applications. Jiangsu CAS-IGBT Technology Co., Ltd. is a Chinese-foreign joint venture focusing on the research, design, and development of new power and electronic chips such as IGBTs and Fast Recovery Diodes (FRDs).
The stock purchase if the first stage in Jiangsu CAS-IGBT Technology's acquisition of LFoundry, which is expected to be finalized at the end of June.
Compensation for Jiangsu CAS-IGBT Technology's acquisition of LFoundry includes about US$113 Million for the company assets including the newly set up 200mm wafer fabrication facility. The stock purchase agreement includes payments of US$60 Million and two payments of about US$26 million. Additionally, the purchasing company will pay about US$63 Million, LFoundry's loan settlement price.
"We are setting the stage for a new era and we are satisfied with it," said Sergio Galbiati and Guenther Ernst, respectively Vice-Chairman and CEO of LFoundry. "The technological and production capacity of the Avezzano plant (specially focused on the automotive sector, but also on security and industrial field with applications such as CMOS image sensors, smart power, embedded memory and others) will provide Jiangsu CAS-IGBT a unique platform from which to grow existing and new Lines of Businesses that will allow for the potential of a brighter future in Avezzano by serving a more diverse set of applications."
Beginning next week LFoundry will hold meetings between management and employees regarding the expected acquisition.