04.23.19
ON Semiconductor announced that it has entered into a definitive agreement to acquire a 300mm fab located in East Fishkill, NY. The total consideration for the acquisition is $430 million, of which $100 million has been paid at signing of the definitive agreement, and $330 million will be paid at the end of 2022, after which ON Semiconductor will gain full operational control of the fab, and the site’s employees will transition to ON Semiconductor. Completion of the transaction is subject to regulatory approval and other customary closing conditions.
The agreement allows ON Semiconductor to increase its 300mm production at the East Fishkill fab over several years and allows for GLOBALFOUNDRIES to transition its numerous technologies to the company’s three other at-scale 300mm sites. Under the terms of the agreement, GLOBALFOUNDRIES will manufacture 300mm wafers for ON Semiconductor until the end of 2022. The first production of 300mm wafers for ON Semiconductor is expected to start in 2020.
The agreement also includes a technology transfer and development agreement and a technology license agreement. This provides a world-class 300mm manufacturing and development team to enable conversion of ON Semiconductor wafer processes from 200mm to 300mm. ON Semiconductor will also have immediate access to advanced CMOS capability including 45nm and 65nm technology nodes. These processes will form the basis for future technology development at ON Semiconductor.
“The acquisition of 300 mm East Fishkill fab is another major step in our progress towards leadership in power and analog semiconductors,” said Keith Jackson, president and CEO of ON Semiconductor.