Although Globalfoundries has been denying the company is for sale this is second disposal of a wafer fab this year (see GloFo sells MEMS business, fab to Taiwan's Vanguard ).
The East Fishkill fab will be transferred to On Semi over three years. The first $100 million of the sale price has been paid at the signing of the definitive agreement, and the remaining $330 million will be paid at the end of 2022, when On Semi will gain full control of the fab.
The fab was originally constructed IBM but was acquired by Globaldfoundries in 2015.
Globalfoundries will continue to manufacture 300mm wafers for On Semiconductor until the end of 2022 while On Semi's production is expected to start in 2020.
The agreement allows On Semi to increase production at the East Fishkill wafer fab while Globalfoundries can transfer its numerous technologies to its three other 300mm wafer fabs in Malta, New York; Dresden, Germany and Singapore. The technologies include 65nm and 45nm CMOS, RFSOI and photonic silicon.
The agreement also includes a technology transfer and development agreement and a technology license agreement that will allow On Semi to transfer wafer processes from 200mm wafers to 300mm. On Semiconductor will also have immediate access to advanced CMOS capability including 45nm and 65nm technology nodes. These processes will form the basis for future technology development at ON Semiconductor.
"The acquisition of 300 mm East Fishkill fab is another major step in our progress towards leadership in power and analog semiconductors," said Keith Jackson, CEO of On Semi, in a statement. "The acquisition adds additional 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."
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