ATREG, Inc., which specializes in helping global companies divest and acquire infrastructure-rich advanced technology cleanroom assets, announced today that it has successfully advised Cypress Semiconductor Corp. (CY) on the sale of the subsidiary that owns its operational 200mm semiconductor manufacturing facility based in Bloomington, Minn., USA. Under the terms of the agreement, SkyWater Technology Foundry, backed by Minn.-based holding company Oxbow Industries, LLC, purchased the capital stock of the subsidiary to operate the fab as a stand-alone specialized foundry. The company will continue to manufacture wafers for Cypress under a multi-year supply agreement while attracting new foundry customers. The transaction allows Cypress to reduce its manufacturing footprint and cost structure while increasing the utilization of its Fab 25 located in Austin, Texas, in line with the company’s plan to improve gross margins.
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“Selling our Minnesota fab supports the continued execution on our gross margin improvement plan while ensuring an uninterrupted wafer supply to our current customers. It also gives our Minn. employees the opportunity to help the new business flourish and continue the fab’s tradition of quality U.S. manufacturing,” explains Joe Rauschmayer, executive vice president of manufacturing for Cypress. “ATREG was valuable in all phases of the transaction. Their deep semiconductor market knowledge combined with their long-standing executive industry relationships have really made a positive difference in how our disposition was structured.”
“We are pleased that Cypress chose to leverage our 16-year fab divestment experience to structure a beneficial transaction for all parties,” adds Stephen Rothrock, founder and CEO of ATREG. “We have been seeing renewed interest in 200mm production assets lately. Given the lack of 200mm equipment in the secondary market, integrated device manufacturers (IDMs) and foundries are acquiring operational 200mm fabs to satisfy growing 200mm production needs.”
About ATREG, Inc.
Headquartered in Seattle, USA with offices in Tokyo, Japan, ATREG specializes in helping companies divest and acquire infrastructure-rich advanced technology manufacturing assets, including front-end and back-end semiconductor fabs, cleanroom facilities, and technology campuses. For more information, please visit us online at www.atreg.com, read our blog, or follow us on LinkedIn and Twitter.