Mercuria plan to buy up old Japanese fabs for foundry

Author: EIS Release Date: Nov 7, 2022

Onsemi has sold an old fab to the Japanese investment fund Mercuria which will use it to make power semiconductors on a foundry business, reports the Nikkei. Mercuria is said to be in the market for further Japan-based fabs to be used for foundry manufacturing.

 

Onsemi put the fab up for sale in September.

 

The fab, in  Niigata, already makes power semiconductor chips as well as other onsemi-designed ICs.  Mercuria is said to be spending $135 million on the purchase cost and on additional equipment.

 

Production under the new regime is said to be starting in December with all of the 600 staff retained.

 

Mercuria will buy the plant jointly with financial advisory firm Sangyo Sosei Advisory and Fukuoka Capital Partners. The deal is backed by the Development Bank of Japan and Itochu.

 

With 84 ageing fabs in Japan, the legacy of its glory years when it had six companies in the world semiconductor top ten, there is a hope that Mercuria will succeed in finding a new business model for some of the fabs re-purposed as low-tech foundries..