ESM Ltd, a company billed as Europe’s top independent chip foundry has been given a second lease of life by a 100m pound ($161.6m) management buy-out organized by Apax Partners & Co Ventures Ltd, and backed by several major customers, including Dialog Semiconductors GmbH.
ESM, then known as Newport Wafer-Fab Ltd, was forced into administration last December when the ongoing $200m investment of its Hong Kong-based owner, QPL International, collapsed in the face of chip industry turmoil and the Asian economic melt-down. The company, which employs 500 people at its plant in Newport, South Wales, has remained at 65% of capacity, producing around 16,000 wafers per month since then. Now though, with the rescue deal in place, chief executive officer Steve Byars says the company is set to complete the implementation of a new 8 wafer, 0.25 micron production line, and to achieve full utilization and profitability in around one year.
ESM’s goal is to be the dominant player in Europe in the independent foundry market, says Byars, who claims it is already on par with its nearest rival, the Israeli foundry, Tower. The company is focused on the market for analog/mixed signal parts, which market analyst company Dataquest says is growing at 17% compound per annum, and which it predicts will be worth $40bn by 2002.
The Welsh company is more or less guaranteed a fair share of this market by the commitments of several investors, such as Dialog, to back their funding with orders. However, Byars said the company is committed to maximizing its capacity and expects to recruit 300 new staff once its new, third production line is brought up to full production.
