By Lars Niven

A US firm is on the verge of buying the former Hyundai microchip factory in Dunfermline— but the deal hinges on financial backing from the Scottish Government, The Courier can exclusively reveal.

The unnamed company is understood to have applied to the SNP-led government for millions of pounds worth of investment grant in a move that could create hundreds of jobs in the town.

Speculation has been mounting for weeks that a deal between the building’s owners Freescale Semiconductor and the high-tech buyer is close to being concluded.

However, The Courier has learned the mystery buyer is seeking a regional selective assistance (RSA) grant and if that is approved the deal will go ahead, barring any unforeseen hitches.

A source confirmed a deal was in the offing.

“The sale is dependent on a grant from the Scottish Government and until that goes through the sale won’t be completed,” he said.

“I understand they are in discussions with Scottish Enterprise about that.”

Hyundai was also looking to benefit from government funding but in the end did not receive a single penny of taxpayers’ money.

The Korean company could have pocketed up to £34 million in government grants but the money was directly linked to the creation of jobs.

The news represents a dramatic turnaround in the building’s fortunes over the past 12 months.

Late last year it was suggested the factory was likely to be demolished but a couple of months ago it was announced that a buyer had emerged.

It has lain empty since it was built, after Hyundai announced 11 years ago it planned to invest £2.4 billion and create up to 2000 jobs.

The company intended to create one of the most advanced computer microchip plants in Europe—but blamed a downturn in the semi- conductor market for its decision to mothball the factory shortly after it was completed.

It was never fitted out and failed to produce a single microchip.

The factory was subsequently bought by Motorola and then sold on to Freescale.

A spokeswoman for Freescale declined to comment on the speculation surrounding the buyer, or what point negotiations had reached.

“The site has not been sold and discussions are ongoing at the moment,” she said.

A spokeswoman for Scottish Enterprise said, “We are working with Freescale and their agents to explore options for maximising the potential of this site and ensuring it can make a significant contribution to the continuing development of the Fife economy.”

The Scottish Government would not comment on the mystery buyer’s grant application.

“We regularly publish details of regional selective assistance offers after they have been accepted,” it said in a statement issued yesterday.

“Until then, details of any potential RSA applications and a company’s project remain confidential.”