onsemi to acquire GT Advanced Technologies
onsemi and GT Advanced Technologies, a producer of silicon carbide (SiC), announced that they have entered into a definitive agreement under which onsemi will acquire GTAT for USD 415 million in cash.
Founded in 1994, GTAT has significant experience in crystalline growth, including SiC. SiC is a key material for next-generation semiconductors that provide technical benefits in SiC power switching devices, significantly improving system efficiency in electric vehicles (EVs), EV charging and energy infrastructure.
“This transaction reflects our confidence and stated commitment to meaningfully invest in silicon carbide solutions to support the creation ofintelligent power and sensing technologies to help build a sustainable future,” said Hassane El-Khoury, president and chief executive officer of onsemi.
onsemi plans to invest in expanding GTAT’s research and development efforts to advance 150mm and 200mm SiC crystal growth technology, while also investing in the broader SiC supply chain, including Fab capacity and packaging.
The transaction, which has been unanimously approved by the Boards of Directors of onsemi and GTAT, is expected to close in the first half of 2022. Completion of the transaction is subject to regulatory approvals and other customary closing conditions. Approval of onsemi’s stockholders is not required in connection with the proposed transaction.
The company expects the transaction to be marginally dilutive to its non-GAAP earnings per share in the immediate term and to be accretive within one year after close.