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Diodes To Buy Texas Instruments' GFAB Facility In Scotland

Diodes Inc. (DIOD), a manufacturer of high-quality application specific standard products, announced Monday that it has entered into an agreement to acquire Texas Instruments' wafer fabrication facility and operation located in Greenock, Scotland or GFAB. Terms of the agreement were not disclosed.

The company said the transaction meets its criteria for strategic acquisitions, and is expected to be immediately accretive.

The closing of the transaction is subject to customary closing conditions and is expected to be completed at the end of the first quarter of 2019.

Upon closing, Diodes will integrate the Greenock facility and fab operations, including the transfer of all GFAB employees to Diodes. In addition, as part of a multi-year wafer supply agreement, Diodes will continue to manufacture TI's Analog products from GFAB as TI transfers into its other wafer fabs.

TI's 318,782 square-foot facility has a potential capacity of up to 21,666 wafer starts or 256,000 8" equivalent layers per month, depending on product mix.

Diodes manufactures high-quality application specific standard products within the broad discrete, logic, analog and mixed-signal semiconductor markets.

Diodes' President and Chief Executive Officer, Keh-Shew Lu noted that GFAB offers Diodes additional wafer fab capacity to support its product growth, in particular its automotive expansion initiatives, as well as excellent engineering skills and wafer fab know-how to support technical and operational performance expectations.

As part of the activity of a taskforce established in 2016 when the potential closure of the GFAB facility was announced, Scottish Enterprise and Inverclyde Council have proposed significant support for Diodes' future investment in GFAB.

Inverclyde Council Leader and chair of the task force, Councilor Stephen McCabe, said, "Diodes will help protect jobs in the area and is a further endorsement of Inverclyde as a business location. The positive approach of all partners involved in the task force has helped to support this development and we look forward to working together to make sure this is a success."

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