FILTRONIC PLC
2 August 1999
FILTRONIC PLC: UK ACQUISITION FROM FUJITSU LTD
HEADS OF AGREEMENT TO PURCHASE SEMICONDUCTOR FACILITY IN DURHAM
Filtronic plc ('Filtronic'), a world leader in microwave technology and
manufacturing telecoms components for cellular base stations and cellular
handset products, announces that it has entered into heads of agreement with
Fujitsu Limited to acquire its semiconductor facility at Newton Aycliffe,
County Durham for an undisclosed consideration.
The agreement is conditional upon Filtronic receiving financial assistance
from the Department of Trade and Industry ('DTI') on terms satisfactory to
Filtronic. Completion is scheduled for the end of August.
The Newton Aycliffe facility is 310,000 square feet in size situated on a 106
acre site. The facility contains a very high quality 100,000 square foot
Class 10 clean room, enabling manufacture of advanced high resolution
semiconductors.
Filtronic already owns a first class 3 inch Gallium Arsenide ('GaAs')
fabrication and semiconductor design facility at a US subsidiary, Filtronic
Solid State ('FSS') in Santa Clara, acquired in October 1998. Over the last
several months, Filtronic has been looking at options to expand its GaAs
manufacturing capacity. Subject to obtaining appropriate support from the
DTI, Filtronic believes that the Newton Aycliffe facility offers the best
available option. Filtronic intends to utilise the proprietary materials
technology and design expertise developed at FSS to establish volume GaAs
Pseudomorphic High Electron Mobility Transistor ('PHEMT') semiconductor
fabrication at the Newton Aycliffe facility. Manufacture at Newton Aycliffe
will be on 6 inch GaAs wafers for sale as discrete semiconductors and for
incorporation into proprietary designed integrated products developed for the
mobile cellular handset and wireless infrastructure markets.
Professor J David Rhodes, OBE FRS FREng, Executive Chairman of Filtronic plc,
said: 'We are delighted to agree terms with Fujitsu for the acquisition of
such a high quality facility, which will rank amongst the first and largest 6
inch GaAs foundries in the world. I believe that GaAs will have the same
impact on the information technology and communications revolution as silicon
has had in the past.'
He added: 'The facility gives us the opportunity to utilise our outstanding
GaAs materials technology in FSS and to apply it to volume opportunities
presented by the cellular handset and wireless infrastructure markets. We
estimate that this development will lead to the creation of over 500 new jobs
within five years. The acquisition is dependent upon financial support from
the DTI. We shall continue to work closely with the DTI and other members of
the local economic support network who, to date, have all reacted positively
to our proposals, to complete the acquisition successfully.'
Enquiries:
Christopher Schofield, Director, Filtronic plc 01274 530622
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.