IDT needed to sell its relatively small (10,000 wafers / month) 200mm fab located in Hillsboro, Oregon to another company that would preserve the existing workforce and ensure continuity of supply as IDT transitioned to a fabless company.
IDT retained ATREG to carry out a divestiture of its operational 200mm Hillsboro fab. Following the unexpected withdrawal of the first buyer, ATREG quickly structured a transaction with a back-up buyer. Due to the new buyer’s unique constraints, ATREG put together a creative deal structure involving a reverse supply agreement.
• ATREG enabled a successful transition for IDT from IDM to fabless.
• The entire workforce was retained and continuity of supply was ensured.
• The recovery of invested capital was maximized and substantial costs associated with fab shutdown (decontamination / decommissioning) were avoided.
• When the lead buyer defected just prior to closing, ATREG was able to quickly conclude a sale with another interested party.
• ATREG marketed the asset to existing semiconductor manufacturers in addition to less obvious candidates, leading to the ultimate fab sale to fabless company Alpha & Omega Semiconductor Limited (AOS).