X-FAB Silicon sells wafer fab to Plus Semi

CAMBRIDGE, UK: X-FAB Silicon Foundries Group is selling its wafer fabrication plant, located in Plymouth, the United Kingdom, to Plus Semi, based in Swindon, the UK.

According to a technology-licence agreement signed between X-FAB Silicon Foundries and Plus Semi, the existing operations at X-FAB’s plant in Plymouth will continue.

The closing of the agreement to transfer the ownership of X-FAB Silicon Foundries UK to Plus Semi is expected take place by the end of 2009. The financial details of the sale deal have not yet been revealed.

In a statement, Hans-Jurgen Straub, CEO of X-FAB Silicon Foundries Group, said both companies stand to benefit from the sale.

Earlier, X-FAB Silicon Foundries had, in a move that was apparently aimed at aligning strategically its facilities, decided to either sell or close down its wafer fabrication plant in Plymouth. The facility at Plymouth accounts for less than 5 per cent of the total capacity of X-FAB.

According to Hans-Jurgen Straub, now X-FAB’s plant at Plymouth can, in collaboration with Plus Semi, continue its operation under new ownership of Plus Semi. And, in turn, Plus Semi will be able to expand its business into sales of analogue products since it has in its possession a wafer fabrication plant, which would benefit it both technologically and capacity-wise.

Michael LeGoff, managing director of Plus Semi, said in a press release that the sale deal reached with X-FAB Silicon Foundries is the “culmination of an enormous effort” from all those concerned to bring the two ex-Plessey businesses together again.