According to Elmos' official website, on June 28th, Elmos announced that it had agreed to sell the wafer factory for a net purchase price of approximately 93 million euros (approximately 737 million yuan).

According to the agreement, Littelfuse will acquire the Dortmund wafer factory and its technical team of about 225 employees. All other activities, including testing operations, will be handled by Elmos.

It is understood that as early as December 2021, Elmos signed a sales agreement with the Swedish MEMS foundry Silex Microsystems AB to transfer the manufacturing activities of the Dortmund factory. However, the plan to sell the 200mm wafer factory was later blocked by the German Federal Cabinet.

Through the acquisition of the Dortmund wafer factory, Littelfuse has enhanced its capacity in power semiconductors, which is suitable for high growth power conversion applications such as renewable energy, energy storage and electric vehicle charging infrastructure.

"Today's agreement is a milestone in the production of Dortmund Semiconductor, which will strengthen Germany's position as a high-tech country. As a fabless company, Elmos will make more use of advanced technology to achieve breakthrough innovation in the field of mixed signal semiconductors. Elmos has become a global market leader in some applications in the automotive industry. We hope to use this strong position to shape our future growth." Dr. Arne Schneider, CEO of Elmos Semiconductor, said in a press release.

Litteluse currently operates in over 20 countries and has approximately 18000 employees worldwide. In Germany, Litteluse operates multiple manufacturing, sales, and research and development bases.

The delivery of this transaction is expected to take effect on December 31, 2024, and is subject to certain delivery conditions and regulatory approval.

If the acquisition proceeds smoothly, after the regulatory authorities approve the transaction, the buyer will pay approximately 37 million euros (equivalent to approximately 293 million RMB). The remaining portion of the purchase price will be paid at the end of the transaction. The transaction has no significant impact on Earnings before interest and taxes in FY2023. Elmos will retain full operational control of the wafer factory until the transaction is completed.

In addition, Elmos and Litteluse have agreed to a clear multi-year capacity sharing arrangement, with an initial period lasting until 2029, for Elmos to purchase a certain number of wafers produced by the wafer factory.