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© dmitriy shironosov dreamstime.com General | April 24, 2019

ON Semiconductor and Globalfoundries strike win-win with sale of New York facility

ON Semiconductor Corporation has agreed to purchase a 300 mm fab in East Fishkill, New York, from Globalfoundries, which creates a mutually beneficial deal that will position both companies for growth.

Under terms of the agreement, ON Semiconductor will pay a total of USD 430 million, with USD 100 million turned over at signing. The balance of USD 330 million will be paid at the end of 2022, at which time ON Semiconductor will gain full operational control of the fab and the site’s employees will join ON Semiconductor. The deal will mean an increase of ON Semiconductor’s 300 mm production at the East Fishkill fab over several years, as well as give Globalfoundries a path to transitioning its various technologies to the company’s three other at-scale 300 mm sites. Additional terms of the agreement call for Globalfoundries to manufacture 300 mm wafers for ON Semiconductor until the end of 2022. First production of 300 mm 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, enabled by an experienced 300 mm manufacturing and development team that will convert ON Semiconductor wafer processes from 200 mm to 300 mm. ON Semiconductor will also have immediate access to advanced CMOS capability including 45 nm and 65 nm technology nodes, processes that will form the basis for future technology development at ON Semiconductor.
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September 20 2019 5:48 pm V14.4.1-1