ON Semiconductor Corporation and GLOBALFOUNDRIES have entered into a definitive agreement for ON Semiconductor to acquire GLOBALFOUNDRIES’ 300mm fab located in East Fishkill, New York. The total consideration for the acquisition is estimated to be about $430 million,
Further, the terms of the agreement state, 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. GLOBALFOUNDRIES will manufacture 300mm wafers for ON Semiconductor until the end of 2022 of which the first production 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, experienced 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.
Keith Jackson, president, and chief executive officer of ON Semiconductor, said, “The acquisition adds additional capacity over the next few years to support growth in our power and analog products, enables incremental manufacturing efficiencies, and accelerates progress towards our target financial model. I am very excited about the opportunity this acquisition creates for customers, shareholders, and employees of the two companies and look forward to a successful partnership with GLOBALFOUNDRIES in the coming years.”
Tom Caulfield, CEO at GLOBALFOUNDRIES added, “This partnership enables GLOBALFOUNDRIES to further optimize our assets globally and intensify our investments in the differentiated technologies that fuel our growth while securing a long-term future for the Fab 10 facility and our employees.”
ON Semiconductor will host a conference call for the financial community at 9:00 a.m. Eastern Standard Time (EST), on April 22, 2019, to discuss this announcement.