VIS to acquire GLOBALFOUNDRIES’ Fab 3E In Singapore

1 min read

Vanguard International Semiconductor (VIS) is to acquire GLOBALFOUNDRIES’ (GF) Fab 3E in Tampines, Singapore in a deal worth $236 million and which is expected to be completed by the end of 2019.

The transaction involves buildings, facilities, and equipment, as well as IP associated with GF’s MEMS business.

GF will continue to operate the facility through the end of 2019, providing a transition period to facilitate technology transfers for VIS and existing GF customers. Fab 3E currently manages a monthly capacity of approximately 35,000 8-inch wafers.

VIS and GF have already reached an agreement on the transfer of Fab 3E’s employees and customers - VIS will extend employment offers to all employees currently working at Fab 3E, as well as continuously provide existing customers at Fab 3E with its foundry service, including MEMS customers.

“I appreciate the support of GF’s board and management team for this transaction, giving VIS an opportunity to continue expanding its capacity and reinforce momentum for future growth,” said Mr. Leuh Fang, Chairman of VIS. “Since its foundation, VIS has already had three separate experiences of successfully transforming a DRAM fab into a foundry fab. We believe this transaction is a win-win for both VIS and GF; and to VIS, it is also a decision that benefits all of our customers, employees, and shareholders.”

“This transaction is part of our strategy to streamline our global manufacturing footprint and increase our focus in Singapore on technologies where we have clear differentiation such as RF, embedded memory and advanced analogue features,” explained GF CEO Tom Caulfield. “Consolidating our 200mm operations in Singapore into one campus will also help reduce our operating costs by leveraging the scale of our gigafab facility in Woodlands. VIS is the right partner to leverage the Fab 3E asset going forward.”