Summary
Microchip Technology Inc. (MCHP) announced on July 17, 2002, its agreement to acquire a semiconductor manufacturing facility located in Gresham, Oregon, from Fujitsu Microelectronics, Inc. (FMI). The acquisition, valued at $183.5 million in cash, includes a substantial campus with extensive clean room space and manufacturing equipment, intended for MCHP's semiconductor production. This strategic move signifies an expansion of MCHP's manufacturing capabilities. The company plans to fund the purchase using its existing cash reserves. The closing of the transaction is contingent upon several conditions, notably the qualification of the facility under Oregon's Strategic Investment Program, which could provide tax exemptions. The deal is expected to close by October 31, 2002, with an option for Fujitsu to accelerate the closing to the end of August 2002.
Key Highlights
- 1Microchip Technology Inc. is acquiring a semiconductor manufacturing facility in Gresham, Oregon from Fujitsu Microelectronics, Inc.
- 2The purchase price for the facility is $183.5 million in cash.
- 3The acquired assets include a 196-acre campus with approximately 826,500 square feet of buildings, including 200,000 square feet of clean room space.
- 4Microchip intends to utilize the facility for its own semiconductor manufacturing operations.
- 5The acquisition will be funded by Microchip's existing cash and cash equivalent balances.
- 6Closing of the transaction is subject to conditions, including qualification for Oregon's Strategic Investment Program for potential tax benefits.
- 7The expected closing date is October 31, 2002, with an early closing option for Fujitsu by the end of August 2002.