Anson's $430 million acquisition of the Gexin Fab10 fab will further optimize the core global assets

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/ 2019-04-24 / News

On April 22, the company announced that it will sell its 300mm (12-inch) Fab 10 fab in East Fishkill, New York, to ON Semiconductor.

Anson US$430 million acquisition of Gexin Fab 10

Gexin and ON Semiconductor They announced that they have reached a definitive agreement on the acquisition of Gexin's 300mm wafer fab in East Fishkil, New York. The total cost of the acquisition is $430 million, of which $100 million has been paid at the time of signing the final agreement and will be paid $330 million by the end of 2022.

After the transaction is completed, ON Semiconductor will gain full operational control of the plant and its employees will transition to ON Semiconductor. The completion of the transaction is subject to regulatory approval and other customary closing conditions.

In addition, the agreement allows ON Semiconductor to add 300mm of production at the East Fishkill facility within a few years and allows Gexin to transfer its many technologies to the company. Three-scale 300mm factory. Gexin will produce 300mm wafers for ON Semiconductor until the end of 2022. The first 300mm wafer production from ON Semiconductor is expected to begin in 2020.

The acquisition agreement also includes technology transfer and development agreements and technology licensing agreements, which provide an experienced 300mm manufacturing and development team to enable ON Semiconductor wafer fabrication Convert from 200mm to 300mm. ON Semiconductor will also immediately receive advanced CMOS features, including 45nm and 65nm technology nodes. These processes will form the basis for the future technological development of ON Semiconductor.

For this acquisition, ON Semiconductor’s President and CEO, Case Jackson, saidThe acquisition of the Gexin East Fishkill 300mm fab is another major step in the company's leadership in power and analog semiconductors. He said the acquisition will increase additional capacity in the coming years to support the company's growth in power and analog products, achieve incremental manufacturing efficiency, and accelerate the process of achieving the target financial model.

I am very excited about the opportunity to create opportunities for the customers, shareholders and employees of the two companies, and look forward to success with the grid in the next few years. Cooperation. 

Gexin further streamlines layout and optimizes assets

Since last year, grid A series of contraction adjustments began.

In August 2018, Gexin announced that it will shelve the 7nm FinFET project and adjust the corresponding R&D team to support the enhanced product portfolio.Platinum Vice President and General Manager of Greater China, Bai Nong, later said at the event that after the 7nm research and development was put on hold, the new development direction of the grid core is to focus on providing special process platforms and products with differentiated features.

In October 2018, Gexin and Chengdu partners signed an amendment to the investment cooperation agreement, announcing that the original process technology (180nm/130nm) will be cancelled. The first phase of the project investment. At the same time, the project schedule will be revised to better adjust production capacity to meet China-based demand for differentiated products, including the core 22FDX technology.

In January 2019, the world's advanced and Gexin announced that the world's advanced will purchase the Fab 3E 8-inch fab plant and plant of the company in Tampines, Singapore. Facilities, machinery and equipment, and MEMS intellectual property rights and business. The transaction amounted to a total of $236 million and is expected to be delivered on December 31, 2019. Gexin said that this is part of the core global optimization strategy for manufacturing blueprints.

For the sale of the Fab 3E plant in Singapore, Gexin said that this is a decision based on strategic transformation to continue to focus on technology investment and provide maximum value to customers. This will enable the core to streamline its footprint in global manufacturing, focusing the Singapore business on technologies that have significant differentiation, such as RF, embedded storage and advanced analog functions.

The New York 300mm fab is now being sold. According to Gexin, this is a personalized step in making Gexin the world's leading professional foundry. It can further optimize the core global assets, strengthen investment in differentiated technologies, and promote growth.

Regular adjustments, some insiders believe that this means that the financial situation of the grid is not very optimistic, the industry also guessed that the core still has May be for sale. However, not long ago, Gexin publicly denied that it would sell the Singapore Fab factory and solemnly stated that ““Any rumors about the sale of the Fab 7 plant and the sale of the grid are nonsense, and emphasize that its current financial position is stable.

Sheikh Mohamed bin Zayed, the principal of Abu Dhabi Mubadala Investment Company, who is a major shareholder of the company, was also visiting After the grid plant in Singapore, Gexin will continue to be an integral part of Mubadala's core portfolio.

Overview of the global foundry market, global market research firm TrendForce Tuanbang Consulting's Tuoba Industrial Research Institute report statistics, wafers in the first quarter of 2019 Among the industrialists, TSMC's global market share was 48.1%, ranking first, and Gexin's global market share was 8.4%, ranking third. UMC's global market share was 7.2%, ranking fourth.

Ansonmei 4.The $300 million acquisition of the Gexin Fab10 fab will further optimize the core global assets

From the data point of view, TSMC is far ahead, but the gap between the market share of Gexin and UMC is not big, and Gexin can be said to have a strong enemy after the king. With shrinking fronts, streamlining layouts, focusing on differentiation to break the deal, or phasing out of the foundry market, it will take time to verify.

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