The producer of semiconductors, BelGaN, has filed for bankruptcy, with 440 people working at the company now faced with losing their jobs at the headquarters in Oudenaarde, Flanders.
The company has been around for more than 30 years, but its attempt to embrace a new chip technology could not pay off fast enough. It has been facing a shortage of cash flow and can no longer keep the site where more than 400 people work open.
"We have continuously executed our business plan and continued on that path. Until today," said general manager Rob Willems. "We have worked with heart and soul for 33 years and started something new. This is a hard sell that is hard to deal with."
The company had switched from producing classic silicon chips to gallium nitride (GaN) chips, which can be used in electric chargers, electric cars and data centres, among others. In addition, GaN chips are also used in higher-quality audio, in driving LED lighting and Lidar sensors, and even in space travel.
However, the promising technology could not be marketed fast enough to pay for the necessary investments. Management points to high labour and energy costs.
"The year 2023 was dramatic in terms of energy costs. We are fortunate to be among the most efficient companies. So we were able to partly compensate for that," it echoes. ‘But it is one of the reasons why we were looking for new high-value-added technologies. The advent of gallium nitride technology was a godsend."
In BelGaN's original press release, the management "regrets that the great story in Flanders seems to be coming to an end," but that does not mean that a relocation of production is being considered, Willems clarifies. "It was rather a statement to politicians. To ask for conditions in which industry can survive in Belgium."
Meeting today
BelGaN’s management will hold an inaugural meeting on Wednesday evening to discuss the future of the stricken Oudenaarde chip manufacturer, following the declaration of bankruptcy.
General Manager Rob Willems confirmed the bankruptcy, adding that administrators have been appointed. The board has withheld further information regarding the meeting with these administrators.
BelGaN finds itself in financial difficulty after a risky investment in gallium nitride (GaN) chips. This promising technology is used in electric chargers, electric cars, and data centres, but also in high-quality audio, LED lighting, Lidar sensors, and even space travel.
There is potential for interested buyers to come forward. In the interim, the company’s production department, which employs around 300 people, will halt operations.
Staff were reportedly devastated by the news and management has given time to digest the situation. "Some see the opportunities that remain for us. There could be a solution. But perhaps not for everyone. This is a sentiment echoed by many." a union source shared with Belga News Agency on Wednesday.
