onsemi retained ATREG to help dispose of its operational 200mm manufacturing facility based in Pocatello, ID, USA as part of the deployment of its fab-liter strategy. The company’s ultimate objective was to reach sustainable financial performance through gross margins expansion and the shedding of older, trailing edge assets.
ATREG brought a buyer to the table that would take advantage of the fab’s trusted status and use it to create a brand-new independent U.S. foundry. Buyer LA Semiconductor is a U.S.-owned/operated, fully operational 180nm-capable pure-play foundry for analog, mixed signal, and power products. This arrangement ensures continued product supply for onsemi.
• ATREG enabled a fab-lite strategy that showed a significant gross margin improvement and a major financial upside for the client (increase of 2025 targeted gross margin from 48% to 50%).
• Structural changes of the last 18 months have significantly improved the predictability of onsemi’s financial results.
• Total fixed cost reductions from all smaller fab exits are expected to drive about $125 to $150 million of fixed costs over the next few years.
