VIS’ acquisition of GlobalFoundries’ Tampines, Singapore fab

GLOBALFOUNDRIES Tampines, SG fab
“We had been looking for a 200mm facility that could meet our needs for extra capacity. ATREG assisted us and leveraged its deep knowledge of the market to locate and work with us to secure this unique asset at a time when 200mm fabs are in limited supply. Since its foundation, VIS has already had three separate experiences of successfully transforming a DRAM fab into a foundry fab. We believe this transaction is a win-win for both VIS and GF. It is also a decision that benefits all of our customers, employees, and shareholders. VIS will uphold its philosophy and principles to continue satisfying customers’ demands in capacity and technology, sustaining profitability and growth, and rewarding our shareholders.”
Chairman

Challenge

Vanguard International Semiconductor Corporation (VIS) needed to accelerate expansion to meet an urgent need for extra 200mm capacity.

Solution

The ATREG team was retained to assist with the global search for a suitable 200mm manufacturing facility and identified GF’s Fab 3E in Tampines, Singapore as a good match. The transaction includes buildings, facilities, and equipment, as well as intellectual property (IP) associated with GF’s MEMS business. GF will continue to operate the facility through the end of 2019, providing a transition period to facilitate technology transfers for VIS and existing GF customers. The deal also includes the transfer of all Fab 3E’s employees and customers to VIS. This transaction is also part of GF’s strategy to streamline its global manufacturing footprint and increase its focus in Singapore on technologies where the company has clear differentiation such as RF, embedded memory, and advanced analog features. Consolidating its 200mm operations in Singapore into one campus will also help reduce the company’s operating costs by leveraging the scale of its gigafab facility in Woodlands, Singapore.

Business Result

• VIS quickly accelerated capacity expansion, leading to the production of more than 400,000 eight-inch wafers per year in the future.
• This acquisition ensured continuity of production for VIS customers in 2019.
• The company retained an experienced 200mm foundry workforce ensuring a smooth transition.
• VIS benefited from a MEMS intellectual property (IP) transfer.