Analysis

Additional share purchase of eight inch wafer fab

2nd October 2018
Alex Lynn

 

On 1st October 2018, ON Semiconductor and Fujitsu Semiconductor announced that ON Semiconductor will complete the incremental 20% share purchase of Aizu Fujitsu Semiconductor Manufacturing Limited, Fujitsu's eight inch wafer fab in Aizu-Wakamatsu.

ON Semiconductor will hold a 60% majority ownership in the joint venture, and a brand transition will occur following the 1st October close. Consequently, the company name of Aizu Fujitsu Semiconductor Manufacturing Limited will transition to ON Semiconductor Aizu Co., Ltd on 1st October, 2018. 

The two companies entered into an agreement in 2014 under which ON Semiconductor obtained a ten percent ownership interest in Fujitsu's Aizu eight inch fab. Initial transfers began in 2014, and successful production and ramp up of wafers began in June 2015. In October 2017, the two companies further agreed an incremental share purchase of Fujitsu's Aizu eight inch fab by ON Semiconductor, and based on the agreement ON Semiconductor increased its ownership interest in Fujitsu's Aizu eight inch fab to 40% in April 2018. 

ON Semiconductor continues to increase production at the Aizu eight inch fab, and both companies believe that further strategic partnership will maximise the value for both companies. ON Semiconductor plans to increase its ownership to 100% in the first half of 2020. This additional capacity will allow ON Semiconductor to continue to scale its operations to meet forecasted demand and enable increased supply chain flexibility.

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