ON Semi’s acquisition of GF’s East Fishkill, USA fab

East Fishkill Fab 10
“The ATREG team provided key insight in bringing this partnership together. This will allow us to intensify our investments in the differentiated technologies that fuel our growth while securing a long-term future for the Fab 10 facility and our employees. The acquisition of the 300mm East Fishkill fab is another major step in our progress towards leadership in power and analog semiconductors. The acquisition adds capacity over the next few years to support growth in our power and analog products, enables incremental manufacturing efficiencies, and accelerates progress towards our target financial model.”
President & CEO

Challenge

ON Semiconductor Corporation needed to accelerate its transition from 200mm to 300mm manufacturing and establish a long-term company owned source for 300mm supply.

Solution

ATREG delivered a creative solution to ON Semiconductor in the shape of a phased acquisition deal with a reliable U.S.-based operating partner, GLOBALFOUNDRIES, involving a defined multi-year transition period enabling strong factory loading. Of the purchase price of $430 million, $100 million were paid at signing and $330 million are to be paid at the end of 2022, date upon which ON Semiconductor will gain full operational control of the East Fishkill fab and the site’s employees will transition to the new owner. Under the terms of the agreement, GF 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.

Business Result

• ON Semiconductor benefits from a technology transfer and development agreement in addition to a technology license agreement.
• The company retains a world-class technology team with extensive 300mm manufacturing and development experience that will enable the conversion of its wafer processes from 200mm to 300mm.
• ON Semiconductor found a path for high-volume MOSFET and IGBT turnkey capacity, along with immediate access to advanced CMOS capability, including 45nm and 65nm technology nodes.