Wednesday, January 17, 2007
As well as looking at strategic options for a wafer fab in Jerusalem, Intel Corp. could be looking to sell its flash wafer fab, Fab18, at Kiryat Gat, which employs 3500 people. Sony Ericsson Mobile Communications AB is said to be in talks concerning the flash memory wafer fab, according to a Globes report.
Israel will shut down Fab 8 in Jerusalem, which currently employs around 600 workers, but sell Fab 18 at Kiryat Gat with an announcement due in a matter of days, according to the report.
Sony Ericsson would either step in as a buyer or as an investor in partnership with a private equity fund. If the flash memory activity is sold in full, the price tag will be around $1.5 billion, on the basis of operating performance only, the report said.
That would leave Intel with only one wafer fab in Israel, Fab28, in Kiryat Gat, which will make devices using a 45-nm process on 300-mm diameter wafers and which is expected to come on line during the second half of 2008. It received a grant of $525 million from the Israeli government, given under initiatives to encourage capital investments in the country's high technology sector.
By: DocMemory
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