Sensing and power semiconductor technology specialist, Allegro MicroSystems, says that it has finalised the sale of its manufacturing facility in Thailand (AMTC” to Innolight Technology.
The AMTC purchase price was approximately USD 27 million before fees and expenses. This sale is an important milestone in the execution of Allegro’s manufacturing transformation to streamline back-end operations and enhance gross margin.
Allegro previously announced its facility consolidation plans as part of a multi-year strategic transformation to optimise the company’s manufacturing footprint and reduce fixed costs. In 2020, it was made official that the company had successfully transferred production from AMTC into its Manila, Philippines facility (AMPI), one quarter earlier than initially planned.
“This transaction takes us one step further toward our long-term goal of a fabless, asset-light operating model,” says Thomas Teebagy, Senior VP of Operations and Quality in a press release. “By consolidating integrated circuit assembly and testing into a single site, we’re streamlining manufacturing flows and lowering our back-end costs, while simultaneously reducing our energy consumption and minimizing waste—important steps toward our vision of moving the world toward a safer, more sustainable future.”