ON Semiconductor and GLOBALFOUNDRIES (GF) have struck a deal where ON Semiconductor will acquire GF’s 300 mm fab in East Fishkill, New York. ON will pay $430 million for the fab, paying $100 million when the agreement was signed and the remaining $330 million at the end of 2022. With the final payment, ON will have full operational control of the fab, and the site’s employees will transfer to ON.

GF will manufacture 300 mm wafers for ON until the end of 2022, with the first production expected to start in 2020. The timing enables ON to increase its 300 mm production at the East Fishkill fab over several years, while GF moves its process technologies to three other 300 mm sites.

The agreement includes technology transfer, development and licensing, providing an experienced 300 mm manufacturing and development team to convert ON’s wafer processes from 200 to 300 mm. The agreement gives ON immediate access to GF’s advanced CMOS capabilities, including 45 and 65 nm nodes, which will enable technology development at ON.

The transaction requires regulatory approval and has other closing conditions.

“We are pleased to welcome the GLOBALFOUNDRIES Fab10 team to ON Semiconductor’s team. The acquisition of 300 mm East Fishkill fab is another major step in our progress towards leadership in power and analog semiconductors. 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. I am very excited about the opportunity this acquisition creates for customers, shareholders and employees of the two companies and look forward to a successful partnership with GLOBALFOUNDRIES in the coming years.” — Keith Jackson, president and CEO of ON Semiconductor

”ON Semiconductor is an ideal partner for GLOBALFOUNDRIES, and this agreement is a transformative step in our journey to build GLOBALFOUNDRIES into the world's leading specialty foundry. This partnership enables GLOBALFOUNDRIES to further optimize our assets globally and intensify our investments in the differentiated technologies that fuel our growth, while securing a long-term future for the Fab 10 facility and our employees.” — Tom Caulfield, CEO of GLOBALFOUNDRIES

“We are excited to support ON Semiconductor’s expansion to the Mid-Hudson Region, which will keep high paying manufacturing jobs in New York State and support the company’s plan for future growth and development.” — Howard Zemsky, president and CEO at Empire State Development