ATREG ADVISES CYPRESS ON MINN. FAB SALE
The ATREG Team is pleased to announce that it has successfully advised Cypress Semiconductor Corp. (Nasdaq: CY) on the sale of the subsidiary that owns its operational 200mm semiconductor manufacturing facility based in Bloomington, Minn., USA.
Under the terms of the agreement, SkyWater Technology Foundry, backed by Minn.-based holding company Oxbow Industries, LLC, purchased the capital stock of the subsidiary to operate the fab as a stand-alone specialized foundry. The company will continue to manufacture wafers for Cypress under a multi-year supply agreement while attracting new foundry customers. The transaction allows Cypress to reduce its manufacturing footprint and cost structure while increasing the utilization of its Fab 25 located in Austin, Texas, in line with the company’s plan to improve gross margins.
“We are pleased that Cypress chose to leverage our 16-year fab divestment experience to structure a beneficial transaction for all parties,” adds Stephen Rothrock, founder and CEO of ATREG. “We are seeing renewed interest in 200mm production assets. Given the lack of 200mm equipment in the secondary market, integrated device manufacturers (IDMs), foundries, and even financial sponsors are acquiring operational 200mm fabs to satisfy growing 200mm production needs.”
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DOES YOUR COMPANY NEED BACK-END ASSETS?
ATREG is actively involved in the divestment and acquisition of front-end fabs. But did you know that clients also increasingly hire us to conduct similar work related to back-end semiconductor facilities?
In 2010 and 2014 respectively, two companies retained ATREG to survey the market and explore the acquisition of existing back-end facilities potentially available for purchase. In 2012, our team assisted Micron in the sale of their back-end facility located in Cavite, Philippines to Optis. In 2015, we represented Qualcomm in the sale of its cleanroom facility based in Longtan, Taiwan to TSMC who is now operating the fab as an advanced packaging facility. In addition, ATREG will close the sale of an advanced packaging facility in Japan in Q2 2017.
Should your company be considering divesting or acquiring a back-end facility this year, we would welcome the opportunity to discuss your needs. To set up a consultation, please contact Senior Vice President Eric Larsen by phone at +1.206.268.7805 or by email.
SEE YOU AT UPCOMING INDUSTRY EVENTS
- SEMICON China, March 14-16, Shanghai, China
- The ConFab, May 14-17, San Diego, USA
Please contact us to set up an appointment with one of our advisors to discuss your manufacturing asset needs. We look forward to seeing you there!