onsemi divests Niigata, Japan fab
onsemi continues to execute its "fab-liter" strategy and has completed of the sale of its Niigata, Japan facility to JS Foundry K.K.
The fab-liter strategy aims to expand the company's gross margin and improve predictably of its financial results by reducing its fixed cost footprint.
JS Foundry K.K. was founded through a partnership between Mercuria Investment Co., Ltd. (Mercuria) and Sangyo Sosei Advisory Corporation Inc. (SSA). Together they established JS Foundry K.K. to be a Japanese-owned Foundry company to supply semiconductors to Japanese customers.
“After an in-depth search for a buyer for the last two years, we are confident to have found the right partner for the facility in JS Foundry K.K.,” says Hassane El-Khoury, president and CEO of onsemi in a press release. “As always, when making decisions about our manufacturing structure and facilities across the globe, we consider the well-being of employees and seek to create a smooth transition for everyone involved. We look forward to a bright future for JS Foundry K.K. and Niigata employees, who we thank for their hard work and commitment to onsemi.”
JS Foundry K.K. is planning to use the site as the foundation for its new foundry business in Japan. To ensure continuity of supply to its existing customers, onsemi has entered into a wafer supply agreement with the new owner to continue existing wafer fabrication at the site.