International Rectifier acquires sub-micron fab

March 19, 2002 – El Segundo, CA – International Rectifier Corp. (IR) has acquired the assets of European Semiconductor Manufacturing and its sub-micron semiconductor manufacturing facility in Newport, Wales, to further support the growth in IR’s proprietary products.

IR’s revenues from the analog ICs, advanced circuits, and power systems grew 30% in the last 12 months and accounts for half of total sales.

The $81 million cash acquisition supplements IR’s manufacturing operations with approximately 80,000 square-feet of sub-micron wafer fab capacity as well as experienced engineers and operating staff. The facility offers mixed-signal and analog process capabilities. Including future expansion at the Newport facility, IR plans overall capital expenditures of less than 10% of revenues annually.

International Rectifier CEO Alex Lidow said, “The acquisition represents an excellent value, and it positions IR to meet the demand for our proprietary products over the next several years, as well as our goal of 30% overall revenue growth in fiscal 2003. We plan to invest up to $125 million more over the next five years, in line with growth needs and market conditions to bring this facility to full capacity. At this level, we expect the fab will be able to generate $750 million of revenue annually.”


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