Yesterday, ON Semiconductor announced that it has reached a definitive agreement to acquire Globalfoundries' 300mm factory in East Fishkill, New York, USA. The total purchase price is US$430 million, of which US$100 million is paid when the final agreement is signed, and the the remaining $330 million will be paid by the end of 2022. Upon completion of the acquisition, ON Semiconductor will receive full ownership of the plant and its employees will be transferred to ON Semiconductor.

The agreement will allow ON Semiconductor to increase its 300mm capacity at its East Fishkill facility. Under the terms of the agreement, Globalfoundries will produce 300mm wafers for ON Semiconductor until the end of 2022. The production of the first 300mm wafers for ON Semiconductor is expected to start in 2020.

Keith Jackson, President and CEO of ON Semiconductor, said: "The acquisition of the 300mm East Fishkill fab is another important step in our leadership in power and analog semiconductors. The acquisition adds additional capacity in the next few years to Support the growth of our power and analog products, achieve incremental manufacturing efficiency, and accelerate the process of achieving the target financial model."