ON Semiconductor Completes Additional Share Purchase of Fujitsu’s 8-inch Wafer Fab

ON Semiconductor Corporation (Nasdaq: ON), and Fujitsu Semiconductor Limited today announced that ON Semiconductor will complete the incremental 20 percent share purchase of Aizu Fujitsu Semiconductor Manufacturing Limited, Fujitsu’s 8-inch wafer fab in Aizu-Wakamatsu, on Oct. 1, 2018. ON Semiconductor will hold a 60 percent majority ownership in the joint venture, and a brand transition will occur following the Oct. 1 close. Consequently, the company name of Aizu Fujitsu Semiconductor Manufacturing Limited will transition to ON Semiconductor Aizu Co., Ltd on Oct. 1, 2018.

The two companies entered into an agreement in 2014 under which ON Semiconductor obtained a 10 percent ownership interest in Fujitsu’s Aizu 8-inch fab. Initial transfers began in 2014, and successful production and ramp up of wafers began in June 2015. In Oct. 2017, the two companies further agreed an incremental share purchase of Fujitsu’s Aizu 8-inch fab by ON Semiconductor, and based on the agreement ON Semiconductor increased its ownership interest in Fujitsu’s Aizu 8-inch fab to 40 percent in April 2018. ON Semiconductor continues to increase production at the Aizu 8-inch fab, and both companies believe that further strategic partnership will maximize the value for both companies.

ON Semiconductor plans to increase its ownership to 100 percent 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.