Micron Agrees To Sell Italian Wafer Plant To LFoundry

Micron Technology, Inc. and LFoundry are announcing that they have reached agreements for LFoundry to acquire Micron Technology Italia, Srl. and all of Micron’s semiconductor fab assets in Avezzano, Italy.  Micron has a current four-year supply agreement with Aptina to manufacture image sensors at the 200mm Avezzano facility that it will also assign to LFoundry.  LFoundry will be granted a restricted technology license by Micron.  The deal is expected to close later this spring, however specific financial details are not disclosed.

LFoundry’s CEO Gunther Ernst states: “The manufacturing capabilities of Micron’s fab in Avenzzano, Italy, together with our own existing fab and technologies, make this a winning combination and an important part of our strategic goal in building LFoundry’s business into a premier analog mixed signal and specialty foundry partner of our customers.”

According to Micron CEO Mark Duncan, “This transaction provides a long-term bridge toward a successful future for the Avezzano facility.  The transaction not only preserves the facility and jobs at Avezzano, but it also supports a stable and long-term wafer supply for Aptina, further enhancing the value of Micron’s equity holdings in Aptina.”

Micron’s press release on the agreement can be viewed here, while LFoundry’s release is available here.