Expected to enable AOS expand into new serviceable available markets and introduce high-value products
Alpha and Omega Semiconductor (AOSL), a designer, developer and supplier of power semiconductors said it intends to exercise an option to acquire certain assets associated with a 200mm wafer fabrication facility from Integrated Device Technology (IDT).
AOS expects that the acquisition will enable them to expand into new serviceable available markets and introduce high-value products.
AOS chairman and CEO Mike Chang said the expected acquisition of this wafer fabrication facility will enable them to transition from their current fabless business model to a "fab-lite" model to support their expected growth beyond the current level.
AOS CFO Ephraim Kwok said this new fab-lite model will give them flexibility in capacity management and geographic diversification of their wafer supply chain.
AOS said it intends to allocate its wafer manufacturing requirement between its internal facility and outsourced capacity, under the fab-lite model.
As per the existing foundry service arrangement with IDT, AOS has the option to acquire these assets for $26m between 1 September 2011 and 15 November 2011.
AOS expects to exercise this option before the 15 November 2011 deadline and close the transaction before 31 January 2012.