LONDON – LFoundry GmbH, a specialist foundry that announced it was closing its wafer fab in Landshut, Germany in 2011, has made a return to profitability during the second quarter of 2012.
Despite the closure of the German wafer fab LFoundry continued operations based on its French wafer fab LFoundry Rousset SAS where it makes analog and mixed-signal ICs on 200-mm diameter wafers with a manufacturing capacity of about 20,000 wafers starts per month.
The company has announced that LFoundry Rousset had 2Q12 sales revenue of 23.7 million euro (about $28.7 million) and the earnings before interest, tax, depreciation and amortization was 1.5 million euro (about $1.8 million).
This compares to first quarter sales 2012 of 23.8 million euro (about $28.8 million) that produced an EBITDA loss of 2.5 million euro (about $3.0 million).
"The fact that our EBITDA is now positive and reaches 6 percent of our revenue validates our business model, concentrated on fast growing market segments and applications," said Jean-Pierre Delesse, president of LFoundry Rousset, in a statement. "For further support to our business model, we managed to finalize our new technology and, at the same time, we optimized our production and improved our customer service performance,"
During the quarter, LFoundry announced the availability of its LF110 process development kit for the production of semiconductors in its 110-nm CMOS process. The PDK was released after two years of development that cost 5 million euro.
I think the issue was that legacy fabs that become foundries....tend to get given supply contracts from the original fab owner.
As those contracts wind down over two or three years, if the foundry cannot replace with other customers then the outcome is inevitable.
It looks like Rousset has work and so the closure of Landshut has helped restore profitability.
LFoundry GmbH, a specialist foundry that announced it was closing its wafer fab in Landshut, Germany in 2011, has made a return to profitability during the second quarter of 2012.
That is a very fast time to turn things around. It is possible they got a non-compete contract to keep them going. And then they made this profit.
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