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Elmos Semiconductor SE, one of the world’s leading suppliers of mixed-signal automotive semiconductors, and Littelfuse, Inc., USA, entered into a definitive agreement on the sale of the Elmos wafer fab at the Dortmund site to Littelfuse. Elmos has agreed to sell the wafer fab at a net purchase price of approximately 93 million Euro. Under the agreement, Littelfuse will acquire the Dortmund wafer fab with a highly skilled technology team of approximately 225 employees. All other activities, including testing operations, will remain with Elmos.
In acquiring the Dortmund wafer fab, Littelfuse enhances its capabilities in power semiconductors for high-growth power conversion applications like renewables, energy storage, and e-Mobility charging infrastructure.
“Today’s agreement is a milestone for semiconductor production in Dortmund and it will strengthen Germany’s standing as a high-tech location. As a fabless company, Elmos will make even greater use of advanced technologies to deliver groundbreaking innovations in mixed-signal semiconductors. Elmos is already the global market leader for certain applications in the automotive industry. We want to use this strong position to shape our future growth,” says Dr. Arne Schneider, CEO of Elmos Semiconductor SE.
Headquartered in Chicago, Illinois, United States, Littelfuse, Inc. is a diversified, industrial technology manufacturing company empowering a sustainable, connected and safer world. The company operates across more than 20 countries, and with approximately 18,000 global associates. Its products are found in a variety of industrial, transportation and electronics end markets. In Germany, Littelfuse operates various manufacturing, sales and R&D sites.
The closing of the transaction is expected to be effective December 31, 2024, and is subject to certain closing conditions and regulatory approvals, among them the investment control procedure under foreign trade law conducted by the German Federal Ministry for Economic Affairs and Climate Action. Elmos will retain full operational control over the wafer fab until the closing date.
In addition, Elmos and Littelfuse have agreed to enter into a defined multi-year capacity sharing arrangement with an initial term lasting through 2029, with Elmos buying defined volumes of wafers produced at the fab. This long-term agreement supplements the existing supply arrangements with Elmos’ other foundry partners and ensures that Elmos has the necessary capacities to meet projected customer demand.
“This is good news for the Elmos wafer fab team. We are delighted for Littelfuse to further develop the wafer fab in Dortmund for power semiconductors. Our employees are now expecting a quick review procedure by the relevant authorities,” says Dr. Schneider.
Following regulatory approvals of the transaction, the buyer will make a payment of approximately 37 million Euro. The remainder of the purchase price will be paid at closing. The transaction has no major effects on EBIT in fiscal year 2023, which is why the current forecast for the full-year EBIT margin in 2023 (25% ± 2 percentage points) continues to apply.
Cash flow is expected to be positively influenced in fiscal year 2023 by the payment of approximately 37 million Euro after regulatory approvals. Irrespective of the transaction, Elmos continues to increase its efforts to expand testing capacities for future growth. The company now anticipates capital expenditures of approximately 19% ± 2 percentage points of sales in fiscal year 2023 (previously: 17% ± 2 percentage points). As a result, Elmos now expects a negative operating adjusted free cash flow in 2023.
Original – Elmos Semiconductor
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Kulicke and Soffa Industries, Inc. announced the launch of several new systems and capabilities serving high-volume semiconductor and fast-growing power-semiconductor applications.
POWERCOMM™ and POWERNEXX™ represent the next evolution in advanced wire bonding systems and are designed with a new generation of intuitive advanced process capabilities which deliver maximum levels of performance, efficiency, and productivity. Additionally, both systems deliver enhanced mean time between assists (MTBA), with automated recovery features that improve the machine to operator ratio and better support localization of semiconductor assembly.
The POWERCOMM™ advanced wire bonding solution is designed to support high-volume discrete and low-pin count devices commonly used in applications such as data centers, automotive, industrial automation, smartphones, wearables and connected devices.
The POWERNEXX™ advanced wire bonding solution is optimized for higher density QFN packages with widths of up to 100mm. The improved illumination design on POWERNEXX™ allows faster alignment time through its Pattern Recognition System (PRS). Faster alignment and advanced process capabilities deliver the industry leading UPH and lowest Cost-of-Ownership.
In addition to the new POWERCOMM™ and POWERNEXX™ systems, K&S extends its leadership in wedge bond applications with new High-Power-Interconnect (HPI) capabilities addressing the emerging needs of power devices. HPI capabilities are becoming increasingly necessary to assemble applications such as inverters, battery assembly and charging infrastructure which support the growth and increasing efficiency requirements of sustainable energy and electric vehicle applications. The need for more efficient and higher-current applications are driving rapid changes to the power semiconductor market by increasing demand in emerging compound semiconductors, such as Silicon Carbide (SiC) and Gallium Nitride (GaN), but are also demanding new capabilities to support next-generation battery assembly and are accelerating the transition from aluminum wire and ribbon, to copper wire and ribbon. Next generation HPI capabilities are being introduced across Kulicke & Soffa’s leading wedge bonder portfolio today.
“Our rich history of innovation and ongoing development priorities are enabling us to provide additional value to the increasingly critical assembly process. This recent set of new wire bonding systems and capabilities will better enable customers to optimize productivity, improve material handling capabilities and significantly lower cost-of-ownership,” said Shawn Sarbacker, Kulicke and Soffa’s Vice President of Ball Bonder Business Unit.
Original – Kulicke and Soffa Industries
