Gresham expands ON Semiconductor's manufacturing capabilities - enabling more rapid in-house development of high-performance submicron analog and digital power products
PHOENIX, Ariz. - May 15, 2006 - ON Semiconductor (Nasdaq: ONNN) today announced that its primary operating subsidiary, Semiconductor Components Industries, LLC, has completed the purchase of LSI Logic Corporation's (NYSE: LSI) Gresham, Ore., wafer fabrication facility and certain other semiconductor manufacturing equipment for a total price of approximately $105 million, under terms of a definitive agreement executed on April 5, 2006. The Company paid LSI Logic approximately $90 million in proceeds to date, with the balance due within 90 days of closing according to the agreement.
ON Semiconductor has hired substantially all of the LSI manufacturing employees currently working at the Gresham facility. The purchase of the Gresham wafer facility significantly enhances ON Semiconductor's internal manufacturing capabilities. With the completion of the this transaction, the Company has gained the skilled process development engineers, operational expertise and process development know-how to help enable it to develop a larger mix of high volume, low cost, high-performance submicron analog and digital power products down to the 0.18 micron (µ) level, with toolset capabilities down to the 0.13µ level in the future.
As mentioned during its first quarter earnings call, the Company expects to provide details of the financial impact of the transaction on its results for the second quarter of 2006 in its second quarter earnings release scheduled for the end of July.
About ON Semiconductor
With its global logistics network and strong portfolio of power semiconductor devices, ON Semiconductor (Nasdaq: ONNN) is a preferred supplier of power solutions to engineers, purchasing professionals, distributors and contract manufacturers in the computer, cell phone, portable devices, automotive and industrial markets. For more information, please visit ON Semiconductor's website at www.onsemi.com.