Cypress Semiconductor Corp. has cut a deal to sell its 200mm fab in Bloomington, Minn., for $30 million.
Under the terms of the deal, Cypress will sell a subsidiary that owns the fab to a startup foundry, SkyWater Technology Foundry, backed by a Minnesota-based holding company. SkyWater will operate the fab, manufacturing wafers for Cypress and for other chip firms, Cypress said.
Cypress initially put the fab up for sale in 2015. Cypress originally acquired the fab from Control Data VTC in 1990.
Cypress said the sale of the fab would allow it to reduce its manufacturing footprint and cost structure while increasing the utilization of its Fab 25 in Austin, Texas.
Seattle-based ATREG Inc., a specialist vendor of wafer fabs and other technology assets, acted as Cypress’ advisor on the fab sale.
“The sale of Fab 4 in Minnesota allows us to reduce our manufacturing costs as we exit the fab while using the proceeds to pay down debt,” said Hassane El-Khoury, Cypress president and CEO, in a press statement.
El-Khoury added that the deal would allow Cypress to maintain uninterrupted wafer supply for our products manufactured at the fab and give former employees in Minnesota “the opportunity to help the new business flourish and continue the fab’s tradition of quality U.S.-based manufacturing.”