ON Semi is increasing its stake in the 8 inch wafer fab from 10 per cent to 40 per cent. This will increase to 60 per cent by the second half of 2018 with full ownership in the first half of 2020
The two companies entered into an agreement in 2014, with production and ramp-up of wafers starting in June 2015. The additional capacity will allow ON Semiconductor to continue scaling its business based on demand and enable increased supply chain flexibility.
“We believe that transforming into a globally competitive company is the key for the continuous growth of the Aizu 8-inch fab. Furthering our strategic partnership with ON Semiconductor, who provides a broad product portfolio, will enable the Aizu 8-inch fab to secure future growth,” said Kagemasa Magaribuchi, president of Fujitsu Semiconductor. “We believe that the growth of the Aizu 8-inch fab will contribute to maintaining and expanding a strong workforce and assist with the development of the regions.”
“We have had a strong and successful partnership with Fujitsu since announcing our investment in 2014,” said Keith Jackson, president and CEO of ON Semiconductor. “We believe furthering our partnership with Fujitsu Semiconductor will enable us to maintain our industry-leading manufacturing cost structure and also help us optimize our capital spending in coming years. This is a strategic investment for ON Semiconductor to secure additional manufacturing capacity, in support of our accelerated production needs and for revenue growth in coming years.”
Around three quarters of ON Semi's capacity is inhouse, especially following the acquistion of Fairchild Semiconductor and its fabs. Gallium nitride (GaN device designer Transphorm uses the fab for its power semiconductors in partnership with Fujitsu and On Semi on a 6in line.