Vishay Intertechnology Acquires Nexperia’s Newport Wafer Fab for $177 Million
- None.
- None.
Insights
The acquisition of Nexperia's wafer fabrication facility by Vishay Intertechnology represents a strategic expansion in the semiconductor industry, particularly in the silicon carbide (SiC) and gallium nitride (GaN) sectors. These materials are critical for power electronics in applications such as electric vehicles (EVs), renewable energy systems and high-efficiency power supplies. The move to acquire a facility with a capacity of over 30,000 wafers per month suggests Vishay's intention to significantly scale up production to meet growing market demand.
From a market perspective, Vishay's focus on SiC and GaN technologies aligns with industry trends towards higher efficiency and performance in semiconductor devices. These materials offer superior characteristics over traditional silicon, including higher thermal conductivity, greater electron mobility and the ability to operate at higher temperatures. As Vishay integrates the Newport facility into its operations, it could potentially enhance its competitive position in the power semiconductor market, which is expected to grow substantially driven by the aforementioned megatrends.
The financial outlay of $177 million in cash for the acquisition indicates Vishay's commitment to investing in its future growth. Funding the transaction with cash on-hand demonstrates Vishay's solid liquidity position, which is reassuring for investors. The investment in the Newport facility is aimed at driving faster growth and enhancing returns to stockholders by tapping into the expanding markets for SiC and GaN-based products.
Long-term benefits of this acquisition could include increased market share and revenue growth from the burgeoning EV and sustainable energy sectors. However, investors should monitor the integration process and subsequent ramp-up of production for potential risks such as operational inefficiencies or unforeseen costs. The upcoming Investor Day presentation will be a critical event for stakeholders to gauge the strategic direction and potential impact of the acquisition on Vishay's financial performance.
Vishay's acquisition of the Newport wafer fab is a significant development in the semiconductor industry, particularly within the compound semiconductor cluster in South Wales. The facility's automotive certification is particularly noteworthy, as it underscores the importance of high-reliability components in the automotive sector, a key market for SiC and GaN devices. By positioning the facility as a manufacturing excellence center focusing on Net Zero Transformation, Vishay is aligning with global priorities on decarbonization and electrification.
Collaboration with local universities and the Compound Semiconductor Cluster could yield advancements in R&D, potentially leading to innovations in power compound semiconductors. Such collaborations can also provide a talent pipeline and foster a synergistic environment for technological advancements. The strategic focus on SiC MOSFETs and diodes marketplace positions Vishay to take advantage of the shift towards e-mobility, sustainability and connectivity, which are becoming increasingly prevalent in modern technologies.
Acquisition Accelerates Vishay’s SiC Production Plans
MALVERN, Pa., March 06, 2024 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc. (NYSE: VSH) today announced that it has completed the acquisition of Nexperia’s wafer fabrication facility and operations located in Newport, South Wales, U.K. for approximately
The Newport wafer fab, located on 28 acres, is an automotive-certified, 200mm semiconductor wafer fab with capacity to produce more than 30,000 wafers per month. The fab is the UK’s largest semiconductor fab with a long history in supplying components to the automotive and industrial markets. Vishay plans to position the facility as a manufacturing excellence center focusing on Net Zero Transformation of decarbonization and electrification.
As a new member of the Compound Semiconductor Cluster in South Wales, Vishay plans to collaborate with local universities and others in the UK to enhance its research and development efforts on power compound semiconductors.
“The acquisition of Newport aligns with the strategic shift the Board envisioned with its decision to appoint new leadership. Under Joel’s leadership, Vishay is making this shift, investing in technologies and incremental capacity to drive faster growth and enhance returns to stockholders. The goal is to prepare Vishay to capitalize on the megatrends of e-mobility, sustainability, and connectivity,” said Marc Zandman, Executive Chairman of the Board.
“With a Vishay-owned fab to qualify and scale our SiC portfolio, we are accelerating our participation in the SiC MOSFETs and diodes marketplace, as desired by our customers,” said Joel Smejkal, President and CEO of Vishay. “In late 2022, the MaxPower acquisition advanced our SiC intellectual property and MOSFETs product technology. We are excited to further develop our SiC and GaN technology as a new member of the Compound Semiconductor Cluster in South Wales.”
“We welcome the highly skilled and dedicated employees at the Newport wafer fab into the Vishay family. Vishay is committed to investing in Newport to grow capacity, and to accelerate our SiC and GaN production and technology development. We look forward to the contributions of Newport’s employees to our shared success,” added Mr. Smejkal. “With the completion of the acquisition, we are now preparing to share our plans for Newport at our upcoming Investor Day on April 2, 2024.”
The transaction was funded by Vishay with cash on-hand. To affect the transaction, Vishay acquired a
About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.
Forward Looking Statement
Statements contained herein that relate to the Company's future performance, including capital investment, capacity expansion and cash flow generation, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as “will,” “expect,” “focus,” “intend,” “committed,” “goal” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause such material variations include: that the fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; risks of foreign operations, including excessive operation costs, labor shortages, changes in tax rates; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; difficulties in new product development; changes in U.S. or foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; and other factors that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The DNA of tech® is a trademark of Vishay Intertechnology.
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President, Corporate Development
+1-610-644-1300
FAQ
What did Vishay Intertechnology, Inc. acquire?
How much did the acquisition cost?
What is the capacity of the Newport wafer fab?
What is the focus of Vishay's plans for the facility?
What are the megatrends Vishay aims to capitalize on?
How does Vishay plan to enhance its research and development efforts?
How was the transaction funded?
When will Vishay share its plans for Newport?
