Vishay Acquires Newport Wafer Fab in Strategic Move

Vishay Acquires Newport Wafer Fab

Vishay, a leading semiconductor manufacturer, has finally reached an agreement to acquire Newport Wafer Fab after years of uncertainty surrounding its ownership. The acquisition comes after a prolonged dispute over whether the fab could be owned by Nexperia, a company owned by the Chinese firm Wingtech.

Vishay has paid a substantial amount of $177 million in cash to secure the purchase of Newport Wafer Fab. Interestingly, Nexperia had acquired the fab in 2021 for a significantly lower price of $63 million. With this acquisition, Vishay plans to establish a Silicon Carbide (SiC) production line to manufacture Trench MOSFETs and diodes.

"Adding Newport Wafer Fab to our manufacturing footprint will play a crucial role in achieving our goal of expanding capacity for our customers and accelerating our SiC strategy," stated Vishay's CEO, Joel Smejkal. "Vishay will bring immediate stability and reliable cash flow generation to ensure the facility becomes a fully operational and profitable fab."

Nexperia's UK country manager, Toni Versluijs, expressed confidence in the agreement with Vishay, stating, "Of all options, this agreement with Vishay is the most viable one to secure the future of the site, as Vishay – like Nexperia – has a solid customer base for the fab's capabilities."

The acquisition of Newport Wafer Fab by Vishay marks a significant milestone in the semiconductor industry. Vishay's expertise and financial strength, combined with the fab's capabilities, are expected to create new opportunities for growth and innovation. The establishment of a SiC production line will enable Vishay to meet the increasing demand for advanced semiconductor devices.