If it exercises the option between September 1st and November 15th, Alpha and Omega (AOS) has the option to acquire the fab for $26 million.
Thus far, AOS has been a fabless vendor of power semiconductors. AOS made a net income of $37.8 million on sales revenue of $361.3 million in the financial year to June 30th.
"The expected acquisition of this wafer fabrication facility will enable us to transition from our current fabless business model to a fab-lite model to support our expected growth beyond the current level," Mike Chang, chairman and CEO of AOS, explained in statement.
"Other benefits that we expect include quicker response to customer demands and enhanced relationships with strategic customers," Mr Chang added in his statement.
Posted by Andre Dixon
