News

26 January 2009

 

Oerlikon sells Esec and etch business units

Technology group Oerlikon Corp AG of Pfäffikon, Switzerland has agreed to sell two of its semiconductor businesses as it focuses on growth areas such as its solar unit (following profit warnings last year due to the effect of the economic downturn on its textile production unit).

The Esec back-end chip assembly equipment business unit is being sold to BE Semiconductor Industries NV (BESI) of Duiven, The Netherlands, which manufactures die sorting, flip-chip and multi-chip die bonding, packaging and plating equipment. Oerlikon also expects to agree a management buyout of the Etch business from Oerlikon Systems.

“Oerlikon continues to fulfil its commitment to streamline its portfolio,” says group CEO Dr Uwe Krüger. “Oerlikon has significantly reduced its exposure to the cyclical semiconductor market and can focus on its core competence in applications for thin film and coating,” he adds.

Founded in 1968, Esec manufactures die bonding equipment for the semiconductor, telecoms and smart-card industries at its headquarters in Cham, Switzerland, and manufactures and services wire bonding systems from its Singapore assembly facility.

The sale of Oerlikon Esec was motivated by strategic considerations. The backend semiconductor business does not provide any synergies with the group’s core technological competences in the coating/thin-film sector, the firm explains. Economies of scale are also only of limited benefit to the group, it adds.

In contrast, BESI is an established player in the assembly equipment market, with an existing presence in the sale of die bonding systems, and Esec (which has an estimated installed base of more than 9000 systems) will reinforce and expand its market position. BESI intends to retain the Esec brand name. “Esec will be integrated into the operations of an experienced, strategic partner who will continue to utilize the main technologies and products of Oerlikon Esec, as well as the expertise of its employees,” says Krüger.

The transaction is expected to close in April. In parallel, ongoing reorganization measures at Oerlikon Esec will be continued and extended. Of the 280 jobs at the Cham site, about 70 will be affected; in addition, another 80 will be cut from Esec group worldwide. An extension of three months in the current short-time work programme has also been applied for, which involves 70 staff.

BESI says that it targets synergies from the Esec acquisition by (i) using BESI’s Asian manufacturing operations and global supply chain network, (ii) integrating and coordinating R&D activities with BESI's Datacon die handling activities, (iii) leveraging the respective resources of the combined sales and customer support networks, and (iv) sharing and coordinating global IT and general and administrative functions.

With the management buyout of the Etch business, Oerlikon continues the strategic realignment of its Systems business unit to focus on its core physical vapor deposition (PVD) process competence. The business unit will continue to serve select semiconductor and optical disc industry clients, even as it transitions to future applications in ‘clean technologies’ and ‘advanced nanotechnology’.

The sale of the two businesses is accompanied by a continued concentration of Oerlikon group’s structure. Due to its increased significance, Oerlikon Balzers is elevated for the first time from being a business unit of the Oerlikon Coating segment to being a segment of its own, while Oerlikon Coating’s Oerlikon Systems business unit is absorbed into the Oerlikon Components segment (which no longer includes Esec).

Search: Oerlikon Solar Back-end chip assembly Etch
PVD

Visit: www.oerlikon.com

Visit: www.besi.nl