October 26, 2006 – Automation and control technology firm Omron Corp. has agreed to acquire a 200mm CMOS semiconductor factory in Yasu, Shiga, Japan from Yasu Semiconductor Corp., a consolidated subsidiary of Seiko Epson. Terms of the deal were not disclosed.
Omron stated that it plans to “further reinforce” the semiconductor operations, to strengthen its line of semiconductor-equipped products which include custom ICs and MEMS devices such as flow and pressure sensors.
YSC was formed in 2001 as a 50/50 JV with IBM, but earlier this year Seiko exercised an option to buy out IBM’s share in the unit for 9.45 billion yen (US ~$82 million). The unit posted a profit of 167 million yen (~$1.4 million) on sales of 10 billion yen (~$84 million) in its fiscal year ended in March, <1% of Epson's total annual group sales.
The acquisition is not expected to have a significant material effect on Omron’s financial outlook for the current fiscal year, the company said. Omron reported semiconductor-related sales of ~6.6 billion yen (~$55 million) in fiscal 2005.