Fujitsu Semiconductor and ON Semiconductor become strategic partners

On July 31, Fujitsu Semiconductor Limted and ON Semiconductor announced that they have reached a foundry service agreement. Under the terms of the agreement, Fujitsu will manufacture wafers for ON Semiconductor at its 8-inch (200mm) pre-process semiconductor wafer fabrication facility in Aizuwakamatsu, Fukushima Prefecture, Japan. The initial production of wafers is expected to start within one year from July 31. ON Semiconductor will have the opportunity to obtain more production capacity from the Aizuwakamashi wafer factory in the future.

It is reported that in order to establish a stronger cooperation, the two companies also signed a definitive agreement; according to this agreement, ON Semiconductor will receive 10% of Fujitsu's new branch (which will include Fujitsu's 8-inch Aizuwakamatsu fab) ownership. ON Semiconductor will pay a price of 700 million yen (about 7 million U.S. dollars) for this minority interest. The transaction is expected to be completed in the fourth quarter of 2014 or early 2015. This transaction is still subject to the approval of specific regulatory agencies and other transaction conditions.

"We believe that the growth of the new company will help the development of the region and maintain employment. We expect that this foundry service agreement and ON Semiconductor's acquisition of an 8" wafer fab minority shareholding agreement will be substantial," said Okada Semiconductor, president of the Fujitsu Semiconductor Group. Promote the business of the two companies."

Keith Jackson, president and chief executive officer of ON Semiconductor, said: "This strategic agreement gives ON Semiconductor additional manufacturing capacity to meet our production needs and revenue growth over the next few years. We believe These agreements with Fujitsu Semiconductor will enable us to maintain the industry-leading manufacturing cost structure and help optimize our capital expenditures in the coming years."

Related introduction:

About Fujitsu Semiconductor Co., Ltd.

Fujitsu Semiconductor Co., Ltd. designs and manufactures semiconductor products to provide highly reliable, optimized solutions and support to meet the different needs of customers. The company's products and services include custom SoCs (ASICs), foundry services, application-specific standard products (ASSPs) and Ferroelectric Random Access Memory (FRAM), with extensive expertise in applications such as mobile, imaging, automotive, and high-performance applications. technology. Fujitsu Semiconductor also promotes energy efficiency and environmental initiatives. Fujitsu Semiconductor is headquartered in Yokohama, Japan and was established on March 21, 2008 as a subsidiary of Fujitsu Limited. The global sales and development network is distributed throughout Japan, Asia, Europe and North America to provide semiconductor solutions for the global market.

About ON Semiconductor

ON Semiconductor (NASDAQ: ONNN) is committed to promoting innovation in energy-efficient electronics, enabling customers to reduce global energy use. The company's comprehensive portfolio of energy-efficient power and signal management, logic, discrete and custom solutions helps design engineers solve their unique design challenges in automotive, communications, computing, consumer electronics, industrial, LED lighting, medical, military/aerospace and power applications. . The company operates a keen, reliable, world-class supply chain and quality program, and operates a network of manufacturing plants, sales offices and design centers in key markets in North America, Europe and Asia Pacific.