onsemi Completes Acquisition of GT Advanced Technologies

Rhea-AI Summary

onsemi has successfully completed its acquisition of GT Advanced Technologies, enhancing its silicon carbide (SiC) capabilities. This strategic move aims to meet customer demand for SiC solutions, vital for electric vehicles and energy infrastructure. The acquisition will enable onsemi to provide end-to-end power solutions and assure customers of a steady supply of critical components. Additionally, onsemi plans to invest in expanding GTAT's manufacturing and R&D efforts to bolster the SiC supply chain, reinforcing its commitment to sustainable, high-growth technologies.

Positive

• Completion of acquisition of GT Advanced Technologies increases silicon carbide (SiC) capabilities.
• Enhances customer supply of critical SiC components for electric vehicles and energy infrastructure.
• Plans to invest in expanding manufacturing and R&D for SiC technology, promoting growth.

Negative

• Integration risks associated with the acquisition may impact expected benefits.

Strengthens onsemi’s ability to drive innovation and to invest in disruptive, high-growth technologies

Accelerates onsemi’s silicon carbide (SiC) capabilities to meet customer demand for SiC-based solutions

Assures customers supply of SiC devices to support the rapid growth of the sustainable ecosystem

PHOENIX--(BUSINESS WIRE)-- onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, today announced that it has completed its acquisition of GT Advanced Technologies (“GTAT”), a producer of silicon carbide (SiC). The acquisition enhances onsemi’s ability to secure and grow supply of SiC.

onsemi’s customers will benefit from GTAT’s extensive experience in crystalline growth as well as its impressive technical capabilities and expertise in the development of wafering-ready SiC. SiC is a key component of next-generation semiconductors that provide technical benefits and improve system efficiency in many applications, including electric vehicles (EVs), EV charging and energy infrastructure. onsemi intends to scale and accelerate GTAT’s development of SiC to assure customers supply of critical components and further commercialize intelligent power technologies.

“We are thrilled to have completed this acquisition, which enables us to boost SiC supply as we carry out our mission of building a sustainable future,” said Hassane El-Khoury, president and chief executive officer of onsemi. “As we move to a carbon free economy, SiC technology is a key driver to enable zero emissions in high efficiency electric vehicles, renewable energy and charging infrastructure. By integrating GTAT, onsemi can now provide end-to-end power solutions from SiC crystal growth to fully integrated intelligent power modules.”

El-Khoury continued, “We are proud to welcome GTAT’s incredibly talented employees to the onsemi family. Their experience and insights in the SiC space are second to none, and we look forward to working together to drive important new innovations that are critical to the growth of the sustainable ecosystem.”

The acquisition reinforces onsemi’s commitment to make substantial investments in disruptive, high-growth technologies to drive differentiation and leadership, including in the SiC ecosystem. onsemi plans to invest in expanding GTAT’s manufacturing facilities, supporting research and development efforts to advance 150mm and 200mm SiC crystal growth technology, while also investing in the broader SiC supply chain, including Fab capacity and packaging.

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. With a highly differentiated and innovative product portfolio, onsemi creates intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way in creating a safer, cleaner, and smarter world. 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 Web site in this news release, such information on the Web site is not to be incorporated herein.

Cautions Regarding Forward-Looking Statements

Certain statements in this press release, including, among others, the expected closing of the transactions and the potential effects thereof, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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. Among these, such risks and uncertainties include, but are not limited to, risks relating to the integration of GTAT, including the potentially accretive and synergistic benefits and that expected benefits may not materialize as expected. Additional factors that could cause results to differ materially from those projected in the forward-looking statements are contained in onsemi’s 2020 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. 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/20211101005252/en/

Media Contacts:

Stefanie Cuene

Corporate Communications

onsemi

+1 (602)-244-3402

stefanie.cuene@onsemi.com

Finsbury Glover Hering for onsemi

+1 (646)-805-2000

onsemi@fgh.com

Investor Contact:

Parag Agarwal

Vice President - Investor Relations & Corporate Development

onsemi

+1 (602)-244-3437

investor@onsemi.com

Source: onsemi

FAQ

What is the significance of onsemi's acquisition of GT Advanced Technologies?

The acquisition enhances onsemi's silicon carbide capabilities, crucial for electric vehicles and sustainable energy solutions.

How will the acquisition affect onsemi's customers?

Customers will benefit from an assured supply of critical SiC components and improved power solutions.

What are onsemi's plans for GT Advanced Technologies post-acquisition?

onsemi plans to invest in expanding GTAT's manufacturing facilities and support R&D for SiC technology.

When did onsemi complete the acquisition of GT Advanced Technologies?

onsemi completed the acquisition recently, as announced in the press release.

What potential risks does onsemi face after acquiring GT Advanced Technologies?

onsemi faces integration risks that may affect the expected benefits from the acquisition.