Monday, April 22nd 2019

GlobalFoundries and ON Semi Partner to Transfer Ownership of East Fishkill NY 300mm Fab

ON Semiconductor Corporation and GLOBALFOUNDRIES today announced that they have entered into a definitive agreement for ON Semiconductor to acquire a 300 mm fab located in East Fishkill, New York. The total consideration for the acquisition is $430 million, of which $100 million has been paid at signing of the definitive agreement, and $330 million will be paid at the end of 2022, after which ON Semiconductor will gain full operational control of the fab, and the site's employees will transition to ON Semiconductor. Completion of the transaction is subject to regulatory approval and other customary closing conditions.

The agreement allows ON Semiconductor to increase its 300 mm production at the East Fishkill fab over several years, and allows for GLOBALFOUNDRIES to transition its numerous technologies to the company's three other at-scale 300 mm sites. Under the terms of the agreement, GLOBALFOUNDRIES will manufacture 300 mm wafers for ON Semiconductor until the end of 2022. First production of 300 mm wafers for ON Semiconductor is expected to start in 2020.

The agreement also includes a technology transfer and development agreement and a technology license agreement. This provides a world class, experienced 300 mm manufacturing and development team to enable conversion of ON Semiconductor wafer processes from 200 mm to 300 mm. ON Semiconductor will also have immediate access to advanced CMOS capability including 45 nm and 65 nm technology nodes. These processes will form the basis for future technology development at ON Semiconductor.

"We are pleased to welcome the GLOBALFOUNDRIES Fab10 team to ON Semiconductor's team. The acquisition of 300 mm East Fishkill fab is another major step in our progress towards leadership in power and analog semiconductors," said Keith Jackson, president and chief executive officer of ON Semiconductor. "The acquisition adds additional capacity over the next few years to support growth in our power and analog products, enables incremental manufacturing efficiencies, and accelerates progress towards our target financial model. I am very excited about the opportunity this acquisition creates for customers, shareholders, and employees of the two companies and look forward to a successful partnership with GLOBALFOUNDRIES in the coming years."

"ON Semiconductor is an ideal partner for GLOBALFOUNDRIES and this agreement is a transformative step in our journey to build GLOBALFOUNDRIES into the world's leading specialty foundry," said Tom Caulfield, CEO at GLOBALFOUNDRIES. "This partnership enables GLOBALFOUNDRIES to further optimize our assets globally and intensify our investments in the differentiated technologies that fuel our growth while securing a long-term future for the Fab 10 facility and our employees."

"We are excited to support ON Semiconductor's expansion to the Mid-Hudson Region, which will keep high paying manufacturing jobs in New York State and support the company's plan for future growth and development," said Howard Zemsky, president and CEO at Empire State Development.
Add your own comment

14 Comments on GlobalFoundries and ON Semi Partner to Transfer Ownership of East Fishkill NY 300mm Fab

#1
Unter_Dog
ON Semi has shorted my company so many parts over the last year its nuts. Nothing like hearing the lead time yesterday was 8 weeks now its 60. Anything they can do to get their crap together to meet demand is welcome.
Posted on Reply
#2
TheLostSwede
GloFo's flagship factory, so definitely no 7nm from them...
Posted on Reply
#3
R-T-B
TheLostSwede said:
GloFo's flagship factory, so definitely no 7nm from them...
They admitted to giving up on that a bit ago, IIRC
Posted on Reply
#4
TheLostSwede
R-T-B said:
They admitted to giving up on that a bit ago, IIRC
Indeed they did, but now they don't even have a fab that could do it, as this was the one that was meant to be modified/added to, for 7nm, if I remember correctly.
Posted on Reply
#5
seronx
TheLostSwede said:
GloFo's flagship factory, so definitely no 7nm from them...
East Fishkill(aka IBM Building 323)/Fab 10 is not the flagship. Malta@(Luther Forest Technology Campus, Saratoga County, New York)/Fab8 is the flagship.

The 7nm and beyond Expansion plan(Fab 8.2/EUV/Next-Gen(3nm GAAE/GAAP licensing)) has been diverted into the 12FDX Expansion plan, going from Chengdu, Dresden, and Malta.
Posted on Reply
#6
rtwjunkie
PC Gaming Enthusiast
TheLostSwede said:
GloFo's flagship factory, so definitely no 7nm from them...
I thought their flagship was the one near Saratoga Springs?
Posted on Reply
#8
Flyordie
There is still a small push to go into 7nm but it won't happen till after 2022, the first FAB to get it will be Malta, NY. You'll hear more about it in 2Q 2021.

The issue is, the price of oil. The price of oil literally ended GlobalFoundries 7nm attempt. Had it stayed around $90-100/barrel.. they would not have abandoned the effort.
Posted on Reply
#9
lexluthermiester
rtwjunkie said:
I thought their flagship was the one near Saratoga Springs?
Neither. Their flagship fab is in Dresden, Germany.
Posted on Reply
#10
rtwjunkie
PC Gaming Enthusiast
R-T-B said:
Same one that made the PowerPC 970 AKA "G5" right?

https://en.wikipedia.org/wiki/PowerPC_970

God, it's been a while...
I believe it was, although many of their NY facilities were chip producers.

It brings back good memories! I had the security contract with them as the biggest client and regularly had to visit all of them, from East Fishkill to Poughkeepsie and Endicott in New York, and Essex Junction in Vermont. All very impressive facilities, although even in the 90’s they were starting to age.
Posted on Reply
#11
R-T-B
rtwjunkie said:
I believe it was, although many of their NY facilities were chip producers.

It brings back good memories! I had the security contract with them as the biggest client and regularly had to visit all of them, from East Fishkill to Poughkeepsie and Endicott in New York, and Essex Junction in Vermont. All very impressive facilities, although even in the 90’s they were starting to age.
The wikipedia article for the PPC970 actually mentions East Fishkill NY as having been renovated for that purpose (or earlier it did anyways), so yep, she's been around the block.
Posted on Reply
#12
seronx
lexluthermiester said:
Neither. Their flagship fab is in Dresden, Germany.
...flagship Fab 8 plant in Malta, New York...
- https://www.theregister.co.uk/2013/01/09/globalfoundries_2bn_fab_8_investment/
...the flagship Malta, N.Y. fab...
- http://semimd.com/blog/2017/09/29/globalfoundries-turns-the-corner/
...Malta Fab 8 Visit
Fab 8 is GF's flagship site and the home of their most advanced technology development efforts. ...
- https://www.semiwiki.com/forum/content/5169-globalfoundries-visit-part-1-s-all-about-execution.html
...the company’s flagship Fab 8 in Malta, New York. ...
- http://www.appliedmaterials.com/nanochip/nanochip-fab-solutions/october-2017/5g-wireless-driving-nex-gen-technologies

Dresden isn't their flagship as all nodes are developed at Malta first. 22FDX? Done at Malta first, 12FDX? Done at Malta first, 14LPP? Only at Malta, etc. Also, the cancelled nodes are all Malta first; 20LPM, 14XM/10XM, 7LP.
Flyordie said:
The price of oil literally ended GlobalFoundries 7nm attempt.
I think it was more that overall GlobalFoundries wasn't in positive net revenue. With the loss of initial customers on the 7nm node that killed it.
Posted on Reply
#13
lexluthermiester
seronx said:
...flagship Fab 8 plant in Malta, New York...
- https://www.theregister.co.uk/2013/01/09/globalfoundries_2bn_fab_8_investment/
...the flagship Malta, N.Y. fab...
- http://semimd.com/blog/2017/09/29/globalfoundries-turns-the-corner/
...Malta Fab 8 Visit
Fab 8 is GF's flagship site and the home of their most advanced technology development efforts. ...
- https://www.semiwiki.com/forum/content/5169-globalfoundries-visit-part-1-s-all-about-execution.html
...the company’s flagship Fab 8 in Malta, New York. ...
- http://www.appliedmaterials.com/nan...2017/5g-wireless-driving-nex-gen-technologies
Oh? Hold that thought..
seronx said:
Dresden isn't their flagship as all nodes are developed at Malta first. 22FDX? Done at Malta first, 12FDX? Done at Malta first, 14LPP? Only at Malta, etc. Also, the cancelled nodes are all Malta first; 20LPM, 14XM/10XM, 7LP.
And yet Globalfoundries themselves do not agree.
https://www.globalfoundries.com/about-us/contact-us/worldwide-locations
According to that info direct from the company website, the Burlington plant does much more than Malta which isn't a "Trusted" plant, a "Design Center", nor is it an "R&D" site. Hardly a flagship plant, thus the sale. Globalfoundaries isn't loosing anything from the sale. So yeah another example of media sites saying something that isn't correct. When referring the Dresden plant being the flagship, it was to say that it is the largest volume plant for the company.
Posted on Reply
#14
rtwjunkie
PC Gaming Enthusiast
seronx said:
...flagship Fab 8 plant in Malta, New York...
- https://www.theregister.co.uk/2013/01/09/globalfoundries_2bn_fab_8_investment/
...the flagship Malta, N.Y. fab...
- http://semimd.com/blog/2017/09/29/globalfoundries-turns-the-corner/
...Malta Fab 8 Visit
Fab 8 is GF's flagship site and the home of their most advanced technology development efforts. ...
- https://www.semiwiki.com/forum/content/5169-globalfoundries-visit-part-1-s-all-about-execution.html
...the company’s flagship Fab 8 in Malta, New York. ...
- http://www.appliedmaterials.com/nanochip/nanochip-fab-solutions/october-2017/5g-wireless-driving-nex-gen-technologies

Dresden isn't their flagship as all nodes are developed at Malta first. 22FDX? Done at Malta first, 12FDX? Done at Malta first, 14LPP? Only at Malta, etc. Also, the cancelled nodes are all Malta first; 20LPM, 14XM/10XM, 7LP.I think it was more that overall GlobalFoundries wasn't in positive net revenue. With the loss of initial customers on the 7nm node that killed it.
Exactly The one I was thinking of, right near Saratoga Springs. The Burlington (Essex Junction) facility is a Trusted Plant, and used to also do R&D under IBM, but has grown out of date.
Posted on Reply
Add your own comment