onsemi Divests Wafer Manufacturing Sites as Part of Fab-Liter Strategy

Company entered into definitive agreement to sell its South Portland, Maine faband closed sale of Belgium fab

PHOENIX – March. 02, 2022 – onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, is executing on its fab-liter manufacturing strategy with the ultimate goal of sustainable financial performance through gross margins expansion.

Last week the company signed a definitive agreement to divest its South Portland, Maine fab. Earlier this month, onsemi closed on the sale of its wafer fabrication facility in Oudenaarde, Belgium. As onsemi transitions production to more efficient fabs within its network, it will improve its cost structure by eliminating fixed costs associated with the sold fabs and lowering its unit costs.

“The proposed divestitures show that we are well on our way to achieve an optimized manufacturing network while supporting our customers with long-term assurance of supply,” said Hassane El-Khoury, president and chief executive officer of onsemi. “The transactions provide employees at the affected fabs with continued employment and growth opportunities while allowing onsemi to transition production from these fabs to other manufacturing sites in an orderly manner.”

onsemi and Diodes Incorporated entered into a definitive agreement for the divestiture of onsemi’s wafer fabrication facility and operations in South Portland, Maine. Diodes plans to expand on its 200mm wafer fab capacity in support of its analog product growth. The transaction is expected to close in the second quarter of 2022.

On February 8, 2022, onsemi completed the sale of its manufacturing facility in Oudenaarde, Belgium to BelGaN Group BV, a consortium of investors and executives with extensive expertise in semiconductors, BelGaN plans to become a leading 6-inch and 8-inch gallium nitride (GaN) foundry in Belgium.