Bidders line up for Belgian chip production site

Three bidders from different regions are reportedly in contention for a recent semiconductor-related acquisition, according to industry sources. Among them, two are from Asia, while one represents European interests. One notable contender is Silex Microsystems AB, a Sweden-based company under Chinese ownership. As the largest dedicated foundry specializing in MEMS components, Silex Microsystems has a strong presence in the global semiconductor industry and is looking to expand its operations through strategic acquisitions.

In a related development, OnSemi previously decided to offload its wafer fabrication facility in Oudenaarde, Belgium, in a move aimed at restructuring its business. The facility was acquired by BelGaN Group BV, a Belgium-based entity headquartered in Mechelen, with the intention of converting it into a gallium nitride (GaN) production site. This decision aligned with the industry's broader shift toward advanced semiconductor materials, particularly GaN, known for its superior efficiency and performance in power electronics.

Despite its promising vision, BelGaN Group BV faced significant financial hurdles. The company had backing from Chinese venture capital investors, but securing the necessary funds to complete the transition to GaN manufacturing proved to be a challenge. Without sufficient investment to support the conversion process, the company struggled to sustain operations, ultimately leading to financial distress.

As a result of its financial difficulties, BelGaN Group BV was forced to file for bankruptcy in August 2024. This marked a major setback for the company, as its ambitious plans for GaN production came to an abrupt halt. The semiconductor industry, which had been closely watching the transition, saw this as yet another example of how capital-intensive the sector can be, requiring substantial financial backing for technological advancements to succeed.

Following the bankruptcy filing, the company's assets, including high-value chip manufacturing equipment, were put up for auction in January 2025. The auction generated significant interest from multiple bidders, ultimately raising over €23 million. This sale highlights the continued demand for semiconductor manufacturing assets, as industry players look to repurpose equipment for new production lines and technological innovations.