Chinese companies were among the main buyers at the bankruptcy auction for BelGaN's high-tech machinery, Belgium’s last industrial chip manufacturer. In total, it raised over €23 million on Friday, according to its creditors.
The company, based in Oudenaarde, East Flanders, went out of business three months ago, leaving over 400 employees jobless. The company specialised in the production of innovative gallium nitride semiconductors.
After a number of offers, creditors failed to find a buyer, leading to the liquidation of the assets. The online auction, which began at the end of November, included around 1,800 lots, with some starting at half a million euros.
Most of the buyers are foreign companies, including those from Germany, the USA, and China. A substantial amount of high-tech machines will be shipped to China, pending export permits.
While creditors noted that the most substantial bids came from the United States and Germany, with less interest from China, it appears now that Chinese companies purchased the largest share of the high-tech equipment, amounting to approximately €8.5 million.
The last owner, Chinese national Zhou Zhen Hong, abandoned the Belgian chip company last year due to cash flow issues. While most items can be exported without issue, some machines, especially those with potential defence applications, require special export documentation from the government.
Slow profitability
BelGaN has a forty-year history, first known as Mietec and later as Onsemi. The company supplied chips for chargers and electric vehicles, specialising in energy-efficient components based on gallium nitride. Experts predict this market will grow exponentially in the coming years, but the turnaround was not profitable quickly enough.
The revenue of the Oudenaarde-based company suffered a blow, dropping from about €120 million in 2021 to just under €75 million in 2022. Although it recovered to over €81 million in 2023, this was insufficient to cover ongoing expenses. At the end of July, the management was forced to file for bankruptcy.
BelGaN’s total assets, including premises being sold separately through a private tender, are estimated to be worth €5 million. This value exceeds the highest offer from a potential buyer to continue operations, which led creditors to decide in September to auction all assets off.
Several less specialised auctions will conclude next week. The company premises are expected to fetch an additional €15 million.
