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GlobalFoundries sells 300mm New York Fab to ON Semiconductor

GlobalFoundries and ON Semiconductor on Monday signed a final agreement for the latter to buy GlobalFoundries 300mm fab in East Fishkill, New York. In addition to the production facility, ON Semiconductor will receive a team of experienced engineers from GlobalFoundries as well as a technology transfer, development and license agreement. The total value of the Fab 10 takeover is $ 430 million. GlobalFoundries today received $ 100 million on signing the contract, while $ 330 million will be paid by the end of 2022 when ON Semiconductor will have full control of the factory. The employees of the plant will also join the ON Semiconductor. Meanwhile, ON will start using fab's services by 2020. Such a long transition period is not uncommon for the industry, as in this case it will allow GlobalFoundries to complete replenishment orders from its current customers. GlobalFoundries first received Fab 1 0 as part of the acquisition of IBM's microelectronics assets in 2015. Fab is used to process 300 mm wafers with various technologies, including 45 nm and 65 nm technological nodes (as well as their 40 nm and 55 nm versions). According to the agreement, these technologies will be licensed to ON Semiconductor and will form the basis of the later upcoming process technology. Currently, ON Semiconductor uses fabs that process 200 mm wafers, so the engineers from GlobalFoundries will help the company transfer the machining technology from 200 mm to 300 mm wafers. Overall, this is GlobalFoundry's latest move to slimming down the…

GlobalFoundries and ON Semiconductor on Monday signed a final agreement for the latter to buy GlobalFoundries 300mm fab in East Fishkill, New York. In addition to the production facility, ON Semiconductor will receive a team of experienced engineers from GlobalFoundries as well as a technology transfer, development and license agreement.

The total value of the Fab 10 takeover is $ 430 million. GlobalFoundries today received $ 100 million on signing the contract, while $ 330 million will be paid by the end of 2022 when ON Semiconductor will have full control of the factory. The employees of the plant will also join the ON Semiconductor. Meanwhile, ON will start using fab’s services by 2020. Such a long transition period is not uncommon for the industry, as in this case it will allow GlobalFoundries to complete replenishment orders from its current customers.

GlobalFoundries first received Fab 1

0 as part of the acquisition of IBM’s microelectronics assets in 2015. Fab is used to process 300 mm wafers with various technologies, including 45 nm and 65 nm technological nodes (as well as their 40 nm and 55 nm versions). According to the agreement, these technologies will be licensed to ON Semiconductor and will form the basis of the later upcoming process technology.

Currently, ON Semiconductor uses fabs that process 200 mm wafers, so the engineers from GlobalFoundries will help the company transfer the machining technology from 200 mm to 300 mm wafers.

Overall, this is GlobalFoundry’s latest move to slimming down the company because it is turning to producing with more specialized process nodes. After Thomas Caulfield became CEO of GlobalFoundries in March of March, the company ceased to develop bleeding manufacturing technology. Then, the company began consolidating its production capacity and selling one of its 200 mm fabs in Singapore (Fab 3E) to Vanguard as part of the exciting MEMS company.

For Fab 3E and Fab 10, GlobalFoundries will receive $ 666 million in total (with $ 336 million in 2019). The company will use the procedure to finance its specialized production technology.

“ON Semiconductor is an ideal partner for GlobalFoundries and this agreement is a transformational step in our journey to building GlobalFoundries into the world’s leading specialty goods,” said Tom Caulfield, CEO of GlobalFoundries. “This partnership enables GlobalFoundries to further optimize our assets globally and intensify our investments in the differentiated technology that burns our growth while ensuring a long-term future for the Fab 10 plant and our employees.”

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Source: GlobalFoundries

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