GlobalFoundries and ON Semiconductor on Monday signed a definitive settlement for the latter to purchase GlobalFoundries’ 300-mm fab in East Fishkill, New York. In addition to the manufacturing facility, ON Semiconductor will get a staff of skilled engineers from GlobalFoundries in addition to a know-how switch, growth, and license agreements.
The whole consideration for the Fab 10 takeover is $430 million. GlobalFoundries obtained $100 million at this time upon the signing of the settlement, whereas $330 million will probably be paid on the finish of 2022 when ON Semiconductor will acquire full operational management of the fab. Employees of the ability will even be a part of ON Semiconductor. Meanwhile, ON will begin utilizing the fab’s companies in 2020. Such an extended transition interval is just not uncommon for the business, as on this case it’s going to permit GlobalFoundries to complete filling orders from its present prospects.
GlobalFoundries first obtained Fab 10 as a part of its acquisition of IBM’s microelectronics belongings in 2015. The fab is used to course of 300-mm wafers utilizing varied applied sciences, together with 45nm and 65 nm know-how nodes (in addition to their 40 nm and 55 nm variations). Under the phrases of the settlement, these applied sciences will probably be licensed to ON Semiconductor and would be the foundation for the latter’s upcoming course of applied sciences.
At current ON Semiconductor makes use of fabs that course of 200-mm wafers, so the engineers from GlobalFoundries will assist the corporate to transit it course of applied sciences from 200-mm to 300-mm wafers.
Overall that is the most recent transfer by GlobalFoundries to slim down the corporate because it pivots in the direction of producing with extra specialised course of nodes. After Thomas Caulfield turned CEO of GlobalFoundries final March, the corporate ceased growth of bleeding-edge manufacturing applied sciences. Then the corporate began to consolidate its manufacturing capacities, promoting considered one of its 200-mm fabs in Singapore (Fab 3E) to Vanguard as a part of exiting MEMS enterprise.
For its Fab 3E in addition to Fab 10, GlobalFoundries will get $666 million in whole (with $336 million in 2019). The firm will use the proceedings to fund its specialised manufacturing applied sciences.
“ON Semiconductor is a perfect companion for GlobalFoundries and this settlement is a transformative step in our journey to construct GlobalFoundries into the world’s main specialty foundry,” mentioned Tom Caulfield, CEO at GlobalFoundries. “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.”
Source: GlobalFoundries
