Vishay completes acquisition of Nexperia Newport wafer fab with UK government approval

Vish, a discrete semiconductor and passive electronic component manufacturer located in Malvern, Pennsylvania, USA, has successfully completed the acquisition of the wafer manufacturing facilities and operations of Nexperia BV (Nexperia) in the Netherlands in Newport, South Wales, UK, for an amount of approximately 1.77 billion in net cash. The acquisition was made subject to UK government approval.

Covering 28 acres and capable of producing more than 30,000 200mm diameter wafers per month, the Newport fab is the UK's largest semiconductor factory and has a long history of supplying components to the automotive and industrial markets. Vishay plans to position the factory as a "manufacturing center of excellence focused on decarbonization and electrification in the net-zero transition." As a new member of the South Wales Compound Semiconductor Cluster, Vishay plans to collaborate with local universities and other institutions in the UK to strengthen its R&D capabilities in power compound semiconductors.

Vishay Executive Chairman Marc Zandman said: "The acquisition of Newport is consistent with the strategic shift envisioned by the Board of Directors when appointing new leadership." Vishay President and CEO Joel Smejkal also said that the acquisition is complementary to the company's capital expenditure investment strategy and will The addition of Newport Wafer Fab to the company's manufacturing footprint will help achieve its goal of expanding capacity for customers and accelerate the company's SiC (silicon carbide) strategy.

Smejkal also said: “We aim to protect the position of our highly skilled and dedicated employees and invest the necessary capital to produce our SiC trench MOSFETs and diodes. With its strong balance sheet and ample liquidity, Vishay will Immediately bringing stability and reliable cash flow generation to the Newport facility to ensure the facility becomes a fully operational and profitable fab."

This acquisition is of great significance to Vishay, not only expanding the company's manufacturing capabilities, but also enabling it to better meet the market needs brought about by the megatrends of electric transportation and sustainable development. Zandman stressed: "Vishay is making this shift, investing in technology and incremental capacity to drive faster growth and improve shareholder returns. Our goal is to prepare Vishay to take full advantage of e-mobility, sustainability and The megatrend of interconnection.”

To complete the transaction, Vishay acquired the legal entity Neptune 6 Ltd and its operating subsidiary Nexperia Newport Ltd, which owns and operates the Newport plant. Neptune 6 Ltd is expected to change its name to Vishay UK Holdings Ltd, while Nexperia Newport Ltd will change its name to Vishay Newport Ltd.

Notably, the acquisition was approved following a review by the UK government under the National Security and Investment Act 2021. The acquisition was subject to strict scrutiny by the British government as the plant may involve national security-related technology and expertise. Ultimately, the UK government concluded that Vishay was a suitable buyer who could ensure the future operation and development of the plant was in the UK's national interest.