onsemi Commemorates Transfer of Ownership of East Fishkill, New York Facility from GlobalFoundries with Ribbon Cutting Ceremony

Rhea-AI Summary

onsemi has acquired GlobalFoundries’ East Fishkill (EFK) fab, the largest U.S. manufacturing site for the company, effective December 31, 2022. This acquisition enables onsemi to enhance its manufacturing capabilities, retaining over 1,000 jobs at the facility. With significant investments exceeding $1.3 billion, the EFK site will focus on power, analog, and sensing technologies. The facility introduces advanced 300 mm capabilities, including 40 nm and 65 nm technology nodes. onsemi's strategy includes collaborating with GF for R&D while contributing to the local economy and semiconductor workforce development.

Positive

• Acquisition of EFK fab enhances onsemi's manufacturing capabilities.
• Retention of over 1,000 jobs at the East Fishkill facility.
• Investment of $1.3 billion to support growth and development.
• Introduction of advanced 300 mm capabilities, including specialized processing.

Negative

• None.

• Acquisition and investments planned for ramp-up at the East Fishkill (EFK) fab create onsemi’s largest U.S. manufacturing site
• EFK enables accelerated growth and differentiation for onsemi’s power, analog and sensing technologies
• onsemi retains more than 1,000 jobs at the site

PHOENIX--(BUSINESS WIRE)-- onsemi (Nasdaq: ON) a leader in intelligent power and sensing technologies, today announced the successful completion of its acquisition of GlobalFoundries’ (GF’s) 300 mm East Fishkill (EFK), New York site and fabrication facility, effective December 31, 2022. The transaction added more than 1,000 world-class technologists and engineers to the onsemi team. Highlighting the importance of manufacturing semiconductors in the U.S., the company celebrated this milestone event with a ribbon-cutting ceremony led by Senate Majority Leader Chuck Schumer (NY), joined by Senior Advisor to the Secretary of Commerce on CHIPS Implementation J.D. Grom. Also in attendance were several other local governmental dignitaries.

Senate Majority Leader Chuck Schumer, alongside onsemi CEO Hassane El-Khoury and J.D. Grom, Senior Advisor to the Secretary of Commerce, cut the ribbon at onsemi's inauguration celebration for their newly acquired East Fishkill site. (Photo: Business Wire)

Over the last three years, onsemi has been focusing on securing a long-term future for the EFK facility and its employees, making significant investments in its 300 mm capabilities to accelerate growth in the company’s power, analog and sensing products, and enable an improved manufacturing cost structure. The EFK fab is the largest onsemi manufacturing facility in the U.S., adding advanced CMOS capabilities - including 40 nm and 65 nm technology nodes with specialized processing capabilities required for image sensor production - to the company’s manufacturing profile. The transaction includes an exclusive commitment to supply GF with differentiated semiconductor solutions and investments in research and development as both companies collaborate to build on future growth.

“With today’s ribbon cutting, onsemi will preserve more than 1,000 local jobs, continue to boost the state’s leadership in the semiconductor industry, and supply ‘Made in New York' chips for everything from electric vehicles to energy infrastructure across the country,” said Senator Schumer. “I am elated that onsemi has officially made East Fishkill home to its leading and largest manufacturing fab in the U.S. onsemi has already hired nearly 100 new people and invested committed $1.3 billion to continue the Hudson Valley’s rich history of science and technology for future generations. I have long said that New York had all the right ingredients to rebuild our nation’s semiconductor industry, and personally met with onsemi’s top brass multiple times to emphasize this as I was working on my historic CHIPS legislation. Thanks to my CHIPS and Science Act, we are bringing manufacturing back to our country and strengthening our supply chains with investments like onsemi’s in the Hudson Valley.”

The EFK facility contributes to the community by retaining more than 1,000 jobs. With the recent passage of the Federal CHIPS and Science Act as well as the New York Green CHIPS Program, onsemi will continue to evaluate opportunities for expansion and growth in East Fishkill and its contribution to the surrounding community. Earlier today, the Rochester Institute of Technology (RIT) announced that onsemi has pledged to donate $500,000 over 10 years to support projects and education aimed at increasing the pipeline of engineers in the semiconductor industry.

“onsemi appreciates Senate Majority Leader Schumer’s unwavering commitment to ensure American leadership in semiconductors and chip manufacturing investments in New York,” said Hassane El-Khoury, president and chief executive officer, onsemi. “With the addition of EFK to our manufacturing footprint, onsemi will have the only 12-inch power discrete and image sensor fab in the U.S., enabling us to accelerate our growth in the megatrends of vehicle electrification, ADAS, energy infrastructure and factory automation. We look forward to working with Empire State Development and local government officials to find key community programs and educational partnerships that will allow us to identify, train and employ the next generation of semiconductor talent in New York.”

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner, and smarter world. onsemi is recognized as a Fortune 500^® company and included in the S&P 500^® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.

Forward-Looking Statements

This press release contains “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “should,” or “anticipates,” and similar expressions. However, all statements, other than statements of historical facts, could be deemed forward-looking statements. All forward-looking statements in this press release are made based on onsemi’s current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Additional factors that could cause results to differ materially from those projected in the forward-looking statements are contained in onsemi’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other of onsemi’s filings with the SEC, respectively. onsemi assumes no obligation to update such information, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230210005319/en/

Parag Agarwal

Vice President - Investor Relations & Corporate Development

onsemi

(602) 244-3437

investor@onsemi.com

Stefanie Cuene

Head of Public Relations

onsemi

(602) 315-3778

stefanie.cuene@onsemi.com

Source: onsemi

FAQ

What is onsemi's recent acquisition related to?

onsemi recently acquired GlobalFoundries' East Fishkill fab to enhance its manufacturing capabilities.

How many jobs were retained after onsemi's acquisition of the EFK facility?

onsemi retained over 1,000 jobs at the East Fishkill facility.

What is the investment amount committed by onsemi for the East Fishkill fab?

onsemi has committed over $1.3 billion for the East Fishkill fab.

What technologies will be enhanced at the East Fishkill site?

The East Fishkill site will enhance power, analog, and sensing technologies.

When was the acquisition of the East Fishkill facility completed?

The acquisition of the East Fishkill facility was completed on December 31, 2022.