KIRCHHEIM, Germany -- Dialog Semiconductor Plc today said it will receive about 6 million euros ($5.3 million) from International Rectifier Corp.'s acquisition of European Semiconductor Manufacturing Ltd., a sub-micron silicon foundry company based in Wales. On Monday, U.S.-based IR announced it was buying the assets of ESM for $81 million in cash to expand its production of mixed-signal and power semiconductors (see March 13 story).
Dialog Semiconductor, a fabless mixed-signal ASIC supplier based near Stuttgart, had written off its 42 million euro ($40 million) investment in ESM during the fourth quarter of 2001 after the U.K. foundry went into bankruptcy. Dialog said it could recoup additional money from its investment, depending upon the final receivership settlement.
Dialog Semiconductor has secured a supply of foundry wafers from multiple sources and expects a continuing business relationship with IR after the El Segundo, Calif., company takes over the EMS fab in Newport, Wales.
The German ASIC house said it now expects revenues to be 19 million euros ($16.7 million) in the first quarter, and taking into account the recovery of 6 million euros from its investment, the company expects to post 0.01 per share in Q1. Dialog's revenues in the fourth quarter of 2001 were 23.8 million ($20.9 million).