Diodes acquires Scottish wafer fab GFAB from Texas Instruments

  Analog semiconductor manufacturer Diodes has announced that it has signed an agreement with Texas Instruments to acquire the latter's wafer fabrication plant and operations unit (GFAB) in Greenock, Scotland. The terms of the acquisition agreement have not been disclosed, and the completion of the transaction depends on customary closing conditions and is expected to be completed by the end of the first quarter of 2019.

Upon completion of the acquisition, Diodes will integrate the Greenock plant and fab operations, including the transfer of all GFAB employees to Diodes. In addition, as part of the multi-year wafer supply agreement, when TI moves to other fabs, Diodes will continue to manufacture TI's analog products from GFAB. The GFAB plant has a capacity of 21,666 to 256,000 8-inch equivalent wafers per month, depending on the product mix.

Dr. Keh-Shew Lu, President and CEO of Diodes, said that GFAB's proposed acquisition is in line with the company's strategic plan for significant revenue and profit growth in the coming years. “GFAB provides Diodes with additional wafer fabrication capabilities to support our product growth, especially automotive expansion plans, while outstanding engineering and wafer fabrication expertise supports our technical and operational performance expectations. This transaction is in line with our The strategic acquisition criteria, we expect it will immediately bring added value."

He added that the GFAB team is expected to enter the Diodes family. In addition, I am grateful to the Scottish Government, the Scottish Development International and the Inverclyde Committee for their commitment to promoting this transaction.

In 2016, TI intends to gradually close the GFAB plant by 2019. When it acquired the National Semiconductor in 2011, it merged with 200mm and 150mm wafer capacity. In 2017, there were about 365 employees. The Scottish Enterprise and the Inverclyde Committee expressed significant support for the Diodes program's investment in GFAB. Inverclyde's Board of Directors and Chairman of the Working Group, City Councillor Stephen McCabe said: "This is a good result for both Inverclyde and Scotland. Diodes (acquisition of GFAB) will help protect employment in the region. Participation in the acquisition The positive attitude of all partners in the group helps support this development and we look forward to working together to ensure the success of the transaction."