Fairchild Semiconductor of the US has bought the power device production unit of Samsung Electronics for $450m. Fairchild officials told a press conference all procedures have been completed and Samsung’s power device production unit in Kihung, which has 1,200 employees, will now operate under the name Fairchild Korea.
The disposal of the unit marks another step in the restructuring of Samsung Electronics, the world’s largest DRAM maker, as it fights to get back to its core businesses and improve cash flow.
A Fairchild official said the company has so far concentrated solely on the American and European markets, and views its latest deal as a means to expand its horizon into new territories.
The acquisition means we now have 200 experienced research personnel in Korea, the first employed by Fairchild outside of the US, making it possible to develop new products here,” the official said. Fairchild is committed to spending about 10% of the projected sales of $400m this year on research and development.
