IDT’s successful transition from IDM to fabless

Former IDT Hillsboro, OR fab
“ATREG’s advisory expertise in the semiconductor industry is second to none. The team knows the active buyers and sellers in the market, and which high-level industry relationships to leverage to meet objectives and timelines. I would highly recommend them.”
Vice President & CFO

Challenge

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.

Solution

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 Value-Add

• 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).