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