September 30, 2024 – Semiconductor giant Coherent Corporation announced on September 27th the sale of its wafer fabrication plant located in Newton Aycliffe, County Durham, UK. The divestment is part of the company’s continuous efforts to optimize its operations and streamline its global business footprint.
“The divestiture of the Newton Aycliffe facility aligns with our strategy to optimize our product portfolio and simplify our operations, enabling us to focus our investments and capital on areas that will drive long-term growth and profitability for the company,” said Jim Anderson, CEO of Coherent.
The wafer fabrication plant, covering an area of approximately 28,799.94 square meters, produced gallium arsenide (GaAs) semiconductors used in military technologies such as fighter jets. The buyer, the UK government, has stated that the Newton Aycliffe wafer fab is the only secure domestic manufacturer of semiconductors. Coherent revealed that the acquisition, valued at 20 million pounds, will retain 100 technical jobs.
The plant boasts a rich history, having been established by Fujitsu in 1991 and subsequently acquired by several companies, including Filtronic Compound Semiconductors in 1999, RF Micro Devices in 2008, Compound Photonics in 2013, KaiamCorp in 2017, and finally by the then II-VI Corporation (now Coherent) within a few months.
However, the plant faced the risk of closure or sale earlier this year due to the termination of a significant supply agreement with Apple at the end of the 2023 fiscal year. Apple had been a major customer of the plant, sourcing components for its iPhone Face ID recognition system. The decision by Apple to adopt a new Face ID system resulted in the loss of orders for the plant, leading to financial difficulties. Coherent had warned in May that the plant had lost a crucial source of income, putting its future in jeopardy.
