GlobalFoundries and ON Semiconductor signed a final agreement on Monday to buy the 300mm GlobalFoundries factory in East Fishkill, New York. In addition to the manufacturing facility, ON Semiconductor will receive a team of experienced engineers from GlobalFoundries as well as technology transfer, development and licensing agreements.
The total price for the acquisition of Fab 10 amounts to 430 million US dollars. GlobalFoundries today received $ 100 million in signing the contract. $ 330 million will be paid out by the end of 2022 when ON Semiconductor takes full operational control of the factory. Staff at the facility will also join ON Semiconductor. Meanwhile, ON will be putting Fab services into operation. Such a long transition period is not unusual for the industry, as in this case, GlobalFoundries can complete the order processing of its current customers.
GlobalFoundries first received Fab 1
Currently, ON Semiconductor uses factories that process 200 mm wafers so GlobalFoundries engineers will help. The company transfers technologies for transporting 200mm to 300mm wafers.
Overall, this is the latest move by GlobalFoundries to curtail the company as it targets production with more specialized process nodes. After Thomas Caulfield became CEO of GlobalFoundries last March, the company hired the development of state-of-the-art manufacturing technologies. Then, the company began consolidating its production capacity and sold one of its 200mm factories in Singapore (Fab 3E) to Vanguard as part of the MEMS business.
For Fab 3E and Fab 10, GlobalFoundries will receive $ 666 million ($ 336 million in 2019). The company will use the procedures to finance its specialized production technologies.
"ON Semiconductor is an ideal partner to GlobalFoundries and this agreement is a transformative step in our quest to develop GlobalFoundries into the world's leading specialty foundry," said Tom Caulfield. GlobalFoundries CEO: "Through this partnership, GlobalFoundries can further optimize our assets worldwide and strengthen our investment in differentiated technologies that drive our growth while ensuring a long-term future for the Fab 10 facility and our employees." Related: