onsemi Divests Wafer Manufacturing Sites as Part of Fab-Liter Strategy

PHOENIX – Feb. 28, 2022 – onsemi

Share

Company entered into definitive agreement to sell its South Portland, Maine fab and closed sale of Belgium fab

PHOENIX – Feb. 28, 2022 – onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, is executing on its fab-liter manufacturing strategy with the ultimate goal of sustainable financial performance through gross margins expansion.

Last week the company signed a definitive agreement to divest its South Portland, Maine fab. Earlier this month, onsemi closed on the sale of its wafer fabrication facility in Oudenaarde, Belgium. As onsemi transitions production to more efficient fabs within its network, it will improve its cost structure by eliminating fixed costs associated with the sold fabs and lowering its unit costs.

“The proposed divestitures show that we are well on our way to achieve an optimized manufacturing network while supporting our customers with long-term assurance of supply,” said Hassane El-Khoury, president and chief executive officer of onsemi. “The transactions provide employees at the affected fabs with continued employment and growth opportunities while allowing onsemi to transition production from these fabs to other manufacturing sites in an orderly manner.”

onsemi and Diodes Incorporated entered into a definitive agreement for the divestiture of onsemi’s wafer fabrication facility and operations in South Portland, Maine. Diodes plans to expand on its 200mm wafer fab capacity in support of its analog product growth. The transaction is expected to close in the second quarter of 2022.

On February 8, 2022, onsemi completed the sale of its manufacturing facility in Oudenaarde, Belgium to BelGaN Group BV, a consortium of investors and executives with extensive expertise in semiconductors, BelGaN plans to become a leading 6-inch and 8-inch gallium nitride (GaN) foundry in Belgium.

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. With a highly differentiated and innovative product portfolio, onsemi creates intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way in creating a safer, cleaner, and smarter world.

###

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.

If you are a member of the press and are interested in receiving onsemi press releases via email, please complete the form below.

* Full Name

* Email

* Media you represent

* Press Category

*Required fields

Choose your prefered language. You can choose more than one.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.