ON Semiconductor spins off fab as part of Fab-Liter strategy

[Introduction]March 1, 2022 – Onsemi (ON), a leader in smart power and intelligent sensing technologies, is executing its fab-liter manufacturing strategy with the ultimate goal of expanding gross margins by Achieve sustainable financial performance.

Last week, the company signed a definitive agreement to divest its South Portland, Maine, U.S. plant. Earlier in February, ON semiconductor completed the sale of its wafer fabrication facility in Oudenaarde, Belgium. As production moves to more efficient fabs within its global manufacturing network, ON Semiconductor will improve its cost structure by eliminating fixed costs associated with sold fabs and reducing the company’s manufacturing unit cost.

“This proposed divestiture demonstrates that we are achieving an optimized manufacturing network while providing our customers with long-term supply assurances,” said Hassane El-Khoury, ON Semiconductor President and CEO. “These transactions provide continued employment and development opportunities, while also allowing ON Semiconductor to transition production from these plants to our other manufacturing plants in an orderly manner.”

ON Semiconductor and Diodes Incorporated have reached a definitive agreement to divest ON Semiconductor’s wafer fabrication facility and operations in South Portland, Maine. Diodes plans to expand its 200mm fab capacity to support growth in its analog products. The transaction is expected to close in the second quarter of 2022.

On February 8, 2022 US time, ON Semiconductor completed the sale of its production facility in Oudenaarde, Belgium, to BelGaN Group BV, a consortium of investors and executives with extensive expertise in the semiconductor field. BelGaN plans to be the leading 6- and 8-inch gallium nitride (GaN) foundry in Belgium.

About Onsemi

ON Semiconductor (Nasdaq: ON) is driving disruptive innovation to help build a better future. Focused on the automotive and industrial end markets, the company is accelerating changes driving megatrends, including the electrification of automotive functions and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. With a highly differentiated portfolio of innovative products, ON Semiconductor creates smart power and sensing technologies to solve the world’s most complex challenges and lead the way in creating a safer, cleaner and smarter world. For more information, please visit: http://www.onsemi.cn.

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