July 9, 2025 /SemiMedia/ — The closure of BelGaN’s GaN power semiconductor factory in Belgium last year led to 417 layoffs and a 9% increase in the unemployment rate in the city of Oudenaarde. In response, Belgian authorities requested support from the European Globalisation Adjustment Fund (EGF) in February 2025 to assist affected workers. The proposal is currently awaiting approval by the European Parliament and Council.

The aid package, exceeding €1.1 million, aims to fund job counseling, skills training, and job placement services. About 85% of the funding (€930,000) will be covered by the EGF, while the remaining 15% (€170,000) will come from VDAB, the Flemish employment and training agency. The support will be retroactively applied to measures implemented following the layoffs in August 2024.

Originally established by Mietec and later acquired by onsemi, the fab was sold to BelGaN in February 2022 and focused on automotive power device production.

Despite the shutdown, interest in repurposing the facility remains high. Three business consortia—two from Asia and one from Europe—have reportedly shown interest in acquiring the plant for photonics manufacturing. Among them is Sweden-based Silex Microsystems, a Chinese-owned pure-play MEMS foundry.

According to bankruptcy administrator Ali Heerman, a European investment group placed a €2 million deposit in April 2025 toward a €20 million acquisition deal. The buyer intends to convert the site into a photonic chip production facility, with an existing business plan already under discussion.

Heerman noted that while investment details are still being finalized, the site's future use in chip manufacturing is confirmed.