–ATREG, Inc. (Advanced Technology Resource Group), a Seattle-based global advisory firm to the semiconductor industry, announced today that it acted as exclusive financial advisor to Renesas Electronics America Inc. in the recently announced sale of its 200mm semiconductor fab to TELEFUNKEN Semiconductors International LLC for an estimated US$53 million. Wafra Capital Partners L.P. and Somerset Capital Group Ltd. helped TELEFUNKEN finance the transaction. TELEFUNKEN will use the Roseville, Calif. facility to manufacture its own analog / mixed-signal high-voltage products as well as products for strategic foundry partners. The buyer has also entered into a supply agreement with Renesas Electronics for manufacturing services at the Roseville factory, and kept the site’s entire workforce.
Renesas Electronics had been considering and implementing various measures to improve manufacturing efficiency by promoting larger wafers, finer process node, and production concentration. In line with these measures, the company decided to sell its Roseville, Calif. facility to TELEFUNKEN Semiconductors International, which had been searching for a new manufacturing facility to expand its semiconductor business.
“We were on an aggressive timeline for completing this transaction by the end of our fiscal year,” explains Yutaka Emoto, executive manager, corporate structure planning department, corporate planning division at Renesas Electronics Corporation based in Tokyo, Japan. “ATREG provided us with the expert financial advice, the key industry relationships, and the market knowledge we needed in order to move quickly and achieve a successful sale.”
“We are very pleased to see an international company making a significant investment in manufacturing in America,” comments Barnett Silver, senior vice president and principal at ATREG. “We are currently witnessing increasing investment in what are perceived as higher-cost regions where semiconductor companies can rely on higher available capacity, more affordable assets, strong IP protection, a highly trained workforce, and wage stability. The Renesas transaction is a perfect example of that unfolding trend.”