#United States #Semiconductor #Pocatello #LA Semiconductor

LA Semiconductor Initiates Sale Process

LA Semiconductor LLC, a prominent U.S. semiconductor foundry, has announced it is officially launching the sale of its wafer fabrication facility located in Pocatello, Idaho. This strategic move aims to bolster domestic manufacturing capabilities in the semiconductor sector. The company has engaged Macquarie Group, a well-known financial services provider, to oversee the marketing and sale process of the facility, which includes advanced backend production capabilities.

Facility Highlights

The Pocatello facility is situated on a sprawling 31-acre campus and symbolizes LA Semiconductor's commitment to enhancing U.S.-based semiconductor manufacturing. With an existing footprint that allows for eventual expansion, the site currently produces a diverse range of technologies, operating within a technological spectrum from 0.18µm to 1.5µm across digital, analog, and mixed-signal products. The facility boasts impressive infrastructure, featuring:

• - 57,000+ square feet of cleanroom space
• - An additional 16,000 square feet available for future cleanroom expansion
• - 554,000 square feet of total building space

These specifications ensure that the Pocatello fab is capable of meeting growing demands while also providing room for further development.

Market Readiness

According to Tony Little, Co-General Manager of LA Semiconductor, the Pocatello fab is currently operating at its most efficient level since the acquisition from onsemi in October 2022. This improvement can be attributed to ongoing process enhancements and the introduction of proprietary technologies, including advanced capacities at 0.35µm and 0.5µm. These advancements not only benefit the facility's current operations but also increase its attractiveness to potential buyers seeking reliable mixed-signal capacity without the execution risks often associated with new builds.

Pat Sedlmayer, Co-General Manager, emphasized that buyers are increasingly favoring ready-to-run brownfield fabs, like the Pocatello facility, which can start production faster compared to greenfield sites. This trend aligns perfectly with LA Semiconductor's strategic goals of optimizing operations while focusing on being an ITAR-registered, onshore foundry capable of serving key markets such as automotive, aerospace, medical, and industrial sectors.

Industry Demand

The timing for this sale is crucial, given the heightened focus on reshoring semiconductor manufacturing in the United States. Recent global supply chain disruptions have underscored the need for domestic production facilities that can quickly respond to market demands. Brian Lee, Associate Director at Macquarie Group, stated, "The demand for onshoring semiconductor manufacturing in the United States has never been stronger." He noted that this environment presents an excellent opportunity for investors looking to leverage government incentives and advanced manufacturing technologies.

Macquarie's experienced team, with over 25 years in the semiconductor industry and extensive backgrounds in sales and equipment remarketing, is well-equipped to facilitate this sale and ensure a smooth transition for all stakeholders involved.

Conclusion

As LA Semiconductor continues to focus on providing high-quality semiconductor solutions, this sale not only reflects its dedication to operational efficiency but also highlights the growing importance of domestic manufacturing in the semiconductor space. With a commitment to serving diverse industries and a robust facility ready for acquisition, LA Semiconductor is poised to make significant strides in the American semiconductor landscape.

For further inquiries regarding the sale, interested parties can contact Brian Lee or Thomas Luscher at Macquarie Group.