Engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA has acquired Kaiam Laser Ltd, a 6-inch wafer fabrication plant in Newton Aycliffe, UK, for $80m in cash reserves. The acquisition is expected to be breakeven at the EBITDA level within 12 months.
The 300,000ft facility has a 100,000ft cleanroom designed for high-volume manufacturing of compound semiconductor devices based on gallium arsenide (GaAs), silicon carbide (SiC) and indium phosphide (InP) materials.
“This facility hosts one of the best cleanrooms in the entire compound semiconductor industry and augments our capabilities at a time when industry capacity is rapidly becoming fully subscribed,” notes II-VI’s president & CEO Dr Chuck Mattera. “Given the demand we anticipate, this acquisition will allow us faster time to market than building a proprietary green-field site,” he adds. “It adds to our in-house capacity for VCSELs [vertical-cavity surface-emitting lasers], and is also as part of a broader strategic move to provide a versatile 6” wafer fab for GaAs-, SiC- and InP-based devices. This acquisition will significantly expand our capacity and is expected to enable us over time to penetrate high-growth markets driven by, for example, 3D sensing, 5G wireless, the electrification of the car, and data-center communications,” he adds.