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PHOENIX, Ariz., US. and YOKOHAMA, Japan – Oct. 1, 2018 – ON Semiconductor Corporation (Nasdaq: ON), and Fujitsu Semiconductor Limited today announced that ON Semiconductor will complete the incremental 20 percent share purchase of Aizu Fujitsu Semiconductor Manufacturing Limited, Fujitsu’s 8-inch wafer fab in Aizu-Wakamatsu, on Oct. 1, 2018. ON Semiconductor will hold a 60 percent majority ownership in the joint venture, and a brand transition will occur following the Oct. 1 close. Consequently, the company name of Aizu Fujitsu Semiconductor Manufacturing Limited will transition to ON Semiconductor Aizu Co., Ltd on Oct. 1, 2018.
The two companies entered into an agreement in 2014 under which ON Semiconductor obtained a 10 percent ownership interest in Fujitsu’s Aizu 8-inch fab. Initial transfers began in 2014, and successful production and ramp up of wafers began in June 2015. In Oct. 2017, the two companies further agreed an incremental share purchase of Fujitsu’s Aizu 8-inch fab by ON Semiconductor, and based on the agreement ON Semiconductor increased its ownership interest in Fujitsu’s Aizu 8-inch fab to 40 percent in April 2018. ON Semiconductor continues to increase production at the Aizu 8-inch fab, and both companies believe that further strategic partnership will maximize the value for both companies.
ON Semiconductor plans to increase its ownership to 100 percent in the first half of 2020. This additional capacity will allow ON Semiconductor to continue to scale its operations to meet forecasted demand and enable increased supply chain flexibility.
About Fujitsu Semiconductor
Fujitsu Semiconductor Group includes a system memory group that is focused on high quality, high performance Ferroelectric random access memory (FRAM), wafer foundry group that has excellent technology and support, and the sales business of Fujitsu Electronics and overseas sales companies. Headquartered in Yokohama, we established as a subsidiary of Fujitsu Limited on March 21, 2008. Through its global sales and development network, with sites in Japan and throughout Asia, Europe, and the Americas, we offer semiconductor solutions to the global marketplace. For more information, visit http://www.fujitsu.com/jp/fsl/en/.
This press release contains forward-looking statements, such as those relating to the acquisition of ownership interests in this joint venture, within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, could be deemed forward-looking statements, particularly statements about investment in the joint venture, the manufacturing capacity of the joint venture, future demand for ON Semiconductor products, ON Semiconductor’s cost structure and the future financial performance of ON Semiconductor. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans” or “anticipates,” or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Among these factors are any regulatory review and approval processes; effects of exchange rate fluctuations; the cyclical nature of the semiconductor industry; our ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality for our current products; legislative, regulatory and economic developments; changes in manufacturing yields; risks associated with acquisitions and dispositions; risks associated with our substantial leverage and restrictive covenants in our debt agreements that may be in place from time to time; risks associated with our worldwide operations, including foreign employment and labor matters associated with unions and collective bargaining arrangements, as well as man-made and/or natural disasters affecting our operations and finances/financials; the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally; risks related to new legal requirements, including laws, rules and regulations related to taxes; and risks involving environmental or other governmental regulation. Additional factors that could affect our future results or events are described in the annual report on Form 10-K filed with the SEC on February 21, 2018 (“2017 Form 10-K”), Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You should carefully consider the trends, risks and uncertainties described in this document, our 2017 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information except as may be required by law.