Silex Microsystems, a Swedish-Chinese chip company, is showing interest in the assets of the bankrupt Belgan plant. Several parties are coming forward to revive the plant.
Since Belgan’s bankruptcy last summer, the machinery at the Oudenaarde plant has been gathering dust. In recent months, several parties have come forward to buy the assets. The latest candidate is Silex Microsystems, a Swedish-Chinese concern that develops micro-electromechanical chip technology, reports De Tijd this morning.
This type is not the most technologically advanced chip, but it is widely used in the automotive and aerospace industries, among others. Silex Microsystems is seeking additional production capacity in Europe. Other bidders come from Middle East and India. A Scandinavian concern Spirit Ventures had auctioned thirty million euros for the plant, but pulled out because of lack of progress.
Geopolitically sensitive
An acquisition by Silex Microsystems may be sensitive because the originally Swedish company is Chinese-owned. Silex previously caught bone when it tried to take over a plant in Germany. In the broader geopolitical context, Europe just wants to be less dependent on Chinese technology. This does require sufficient production on its own soil and so a vacant factory is not interesting either.
The Flemish government is not involved in a possible takeover, but via Belga, Prime Minister Matthias Diependaele (N-VA) said he is closely monitoring the situation because of the strategic importance of the chip industry. The government was widely criticized for making little or no contribution to keep the plant alive.
For decades, the Belgan plant in Oudenaarde was the only active production site for chip technology in Belgium. The plant was founded in 1983. After a takeover by an American company in 2022, the plant shifted its focus to GaN semiconductors: an expensive and unsuccessful gamble that proved fatal to the company. As no acquirer was found, Belgan closed its books for good last September.