PHOENIX – Dec. 1, 2022 – onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, today announced the completion of the sale of its Niigata, Japan facility to JS Foundry K.K. The divestiture aligns with onsemi’s fab-liter strategy to expand gross margin and improve predictably of its financial results by reducing fixed cost footprint.
JS Foundry K.K. was founded through a partnership between Mercuria Investment Co., Ltd. (Mercuria) and Sangyo Sosei Advisory Corporation Inc. (SSA). Mercuria, a subsidiary of Mercuria Holdings Co., Ltd. (a listed company on the Prime Market of the Tokyo Stock Exchange) is one of the leaders in the Japanese alternative investment space and its investments cover different industries including manufacturing and service industries. SSA is the first financial advisor in Japan specializing in the technology, media and telecommunications (TMT) industry, with world-class financial advice and a network of cross-border transactions connecting domestic and international clients on a variety of transformational projects. Through their partnership, they established JS Foundry K.K. to be a Japanese-owned Foundry company to supply semiconductors to Japanese customers.
“After an in-depth search for a buyer for the last two years, we are confident to have found the right partner for the facility in JS Foundry K.K.,” said Hassane El-Khoury, president and chief executive officer of onsemi. “As always, when making decisions about our manufacturing structure and facilities across the globe, we consider the well-being of employees and seek to create a smooth transition for everyone involved. We look forward to a bright future for JS Foundry KK and Niigata employees, who we thank for their hard work and commitment to onsemi.”
JS Foundry K.K. is planning to use the site as the foundation for its new foundry business in Japan. To ensure continuity of supply to its existing customers, onsemi has entered into a wafer supply agreement with JS Foundry K.K. to continue existing wafer fabrication at the site.
Cautions Regarding Forward-Looking Statements
Certain statements in this press release, including, among others, the expected closing of the transactions and the potential effects thereof, are “forward-looking statements”, as that term is defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “should,” or “anticipates,” and similar expressions. All forward-looking statements in this press release are made based on onsemi’s current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Additional factors that could cause results to differ materially from those projected in the forward-looking statements are contained in onsemi’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other of onsemi’s filings with the SEC, respectively. onsemi assumes no obligation to update such information, except as may be required by law.