US chip manufacturer Atmel Corporation will take over Siemens’ North Tyneside semiconductor factory in northeastern England.
Both partners have agreed to keep the purchase price confidential. The partners are talking about Atmel supplying specific semiconductor products to Siemens.
The supply agreement would help Siemens secure future availability of flash memory chips. Atmel sees the takeover of the North Tyneside chip fab as an opportunity to quickly build up its own production capacity in Europe and boost its market share.
The North Tyneside chip fab was built in 1995. In response to the later worldwide overcapacity in the semiconductor business, production at the facility was closed down at the end of 1998. Since then, Siemens has been in contact with a number of potential buyers.
On the web at <a href=’http://www.siemens.com/’>www.siemens.com</a>.