ON Semi to Sell Japanese Power Fabs
Power device giant ON Semiconductor seeks to sell two wafer fabs in Niigata, Japan.
ON Semiconductor Corporation recently announced plans to sell its 1.1 million-square-foot manufacturing facility in Niigata, Japan. The move is part of the company’s effort to optimize its manufacturing operations and scale its power, analog and sensor segments.
Image courtesy of ON Semiconductor.
Located on a 40-acre campus, the facility is the site of two 5-inch and 6-inch wafer fabs. The plant came with ON Semi’s acquisition of SANYO Semiconductor in 2011.
The Arizona-headquartered semiconductor giant has grown its presence in Japan in recent years. In 2018, the company acquired an 8-inch wafer fab in Aizu, Japan, from Fujitsu Semiconductor Limited. Elsewhere in Japan, ON Semi runs two design centers in Gunma and Gifu, as well as a solutions engineering center in Tokyo.
In announcing plans to sell its Niigata fabs, ON Semi reaffirmed its ongoing commitment to expand its footprint in Japan.
“ON Semiconductor plans to continue to invest in its various functional groups, such as field service, research and development, solution engineering centers, and manufacturing plants to better serve its customers in Japan,” the announcement stated.
In its recent second-quarter earnings report, ON Semiconductor recorded $1.21 billion in revenue, a decrease of 5% from Q1 2020 and down 10% from Q2 2019 revenue. In the Q2 earnings announcement, ON Semi President and CEO Keith Jackson stated that the company had increased the pace of its manufacturing optimization to reach its gross margin target.
Keeping with that goal, ON Semi recently ramped up 300mm wafer production at its manufacturing facility in East Fishkill, New York.
Jackson added another update about the company’s power segment, saying, “Our design win pipeline continues to expand rapidly with multiple strategic wins for our power, analog and sensor products in automotive, industrial, and cloud-power applications.”