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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.

Carved from Onsemi in 2022, Belgan aimed to turn the Oudenaarde manufacturing site into a foundry for 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.

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.

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 on July 31.

Editor：Vicky

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