The curators of bankrupt chip manufacturer BelGaN in Oudenaarde, East Flanders, have reached an agreement with a European investor who plans to invest between 200 and 250 million euros. Chip production would be restarted at the site.
The new chip production at the site, possibly providing jobs to 500 people, would not involve gallium nitride chips – the technology that did not pay off quickly enough for BelGaN. BelGaN got into financial problems after it switched its production from traditional silicon chips to those gallium nitride chips, which can be used in electric chargers, electric cars and data centres. It’s a promising technology but the company faced a lack of cash flow and had to file for bankruptcy last year.
The new owner will take over the premises in Oudenaarde for 20.35 million euros, but no machinery from the former BelGaN. It was not yet disclosed which investor signed the deal, at the request of the interested party. “I suspect that negotiations are still ongoing about the manner and extent of the investment,” curator Ali Heerman said. “But it’s confirmed that it concerns chip production.” To verify the seriousness of the transaction, an advance payment of 2 million euros was requested – and paid.
Photonic chip production
“There is a business plan for photonic chip production,” Heerman specified. “That is a totally different type of production than what used to be done at BelGaN. The new technology would mainly have applications in AI, data centres and the automotive industry.”
Besides the European buyer, there were two other bidders: a Chinese and an Indian company. Their proposals remain confidential. The enterprise court has already given the green light for the sale of the building in Oudenaarde, with two large cleanrooms, which are also suitable for the new type of chip production.
