LONDON Ė Alpha and Omega Semiconductor Ltd., a power semiconductor IC vendor with strong connections in China, has said it intends to buy a 200-mm wafer fab owned by Integrated Device Technology Inc. and located in Hillsboro, Oregon.
Under a foundry supply agreement with IDT (San Jose, Calif.) Alpha and Omega (AOS) has the option to acquire the fab for $26 million if it exercises the option between Sept. 1 and Nov. 15, 2011. AOS is officially based in Hamilton, Bermuda, but has a main office in Sunnyvale, Calif.
AOS has hitherto been a fabless vendor of power semiconductors and reportedly has used Hua Hong NEC in China to manufacture its chips, which are distributed in Asia and sold extensively into the notebook, netbook and mobile phone sectors. In the financial year to June 30, 2011 AOS made a net income of $37.8 million on sales revenue of $361.3 million.
"The expected acquisition of this wafer fabrication facility will enable us to transition from our current fabless business model to a fab-lite model to support our expected growth beyond the current level," said Mike Chang, chairman and CEO of AOS, in statement. "Other benefits that we expect include quicker response to customer demands and enhanced relationships with strategic customers."
"We initiated our relationship with IDT under a foundry service arrangement, and through close collaboration, we were able to transfer certain products to, as well as develop new technologies at, the IDT facility. Accordingly, we believe that the production ramp-up period following the acquisition would be shortened as we are already receiving production wafers in low volume from IDT," said Ephraim Kwok, CFO of AOS.
"This announcement marks an important phase in IDT's transition to a fabless
semiconductor company. Our system solution strategy requires access to a wide
variety of process technologies and an ecosystem of outsourced manufacturing
partners. Two years ago, IDT entered into a product fabrication agreement with
TSMC and we are nearing completion of the transfer of our products and process
technologies to their fabs." said Ted Tewksbury, president and chief
executive officer at IDT, in a separate statement issued by IDT. "The transformation to a
fabless model will enable IDT to focus our resources and investments on
innovative new product definition and development, while outsourcing
manufacturing to industry leading foundry partners."
AOS and IDT said they expect to close the transaction prior to Jan. 31, 2012.Related links and articles:
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