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ON Semiconductor To Acquire 300mm Fab In New York For $430 Mln - Quick Facts

ON Semiconductor Corp. (ON) has entered into a definitive agreement with GlobalFoundries to acquire a 300mm fab located in East Fishkill, New York, for $430 million, the two companies said Monday.

Of the total consideration, ON Semiconductor has paid $100 million at signing of the definitive agreement. The remaining $330 million will be paid by the company 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.

ON Semiconductor noted that the agreement will allow it to increase its 300mm production at the East Fishkill fab over several years, and allow 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. First production of 300mm wafers for ON Semiconductor is expected to start in 2020.

The agreement also includes a technology transfer and development agreement as well as a technology license agreement. This will enable conversion of ON Semiconductor wafer processes from 200mm to 300mm. In addition, ON Semiconductor will have immediate access to advanced CMOS capability, including 45nm and 65nm technology nodes.

"We are pleased to welcome the GLOBALFOUNDRIES Fab10 team to ON Semiconductor's team. 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 chief executive officer of ON Semiconductor.

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