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#News(General) [ via IoTForIndiaGroup ]
ON Semiconductor and Globalfoundries announced a $430 million agreement to transfer ownership of Globalfoundries 300mm Fab 10 in East Fishkill, New York, to ON Semiconductor. While the deal is still pending regulatory approval and closing conditions, I wanted to give my quick take on the news.
The dealThe transition of ownership of the East Fishkill “Fab 10” is expected to happen over the next several years. The deal was sealed with a $100 million initial payment to GF, with full operational control expected to be given to ON Semi at the end of 2022 when the final payment of $330 million is made.
This deal comes with the benefit of a technology transfer and development agreement between the two companies—GF’s highly experienced 300mm team will aid in the conversion of ON Semiconductor’s wafer processes from 200mm to 300mm, with ON Semiconductor expected to begin production of its own 300mm wafers in 2020. GF says it will continue to manufacture 300mm wafers at Fab 10 for ON Semi until 2022, when the final payment is made. At that time, the site’s employees will transition to employment with ON Semi. The companies say that none of the approximately 1,300 jobs will be lost as a part of this deal, and additionally, ON Semi says it will add approximately 150 more well-paying jobs to the region.
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