Expanding production capacity and improving supply chain flexibility

Fujitsu Semiconductor and ON Semiconductor announced that they have agreed to a 40% ownership stake in Fujitsu's 8-inch wafer fab line located in Aizu-Wakamatsu, with ON Semiconductor acquiring an incremental 30% stake.

Under an agreement signed between the two companies in 2014, ON Semiconductor acquired a 10% stake in Fujitsu's Aizu 8-inch fab. Initial transfers began in 2014, and successful wafer production and semiconductor volume production commenced in June 2015. As ON Semiconductor continues to increase production at the Aizu 8-inch fab, both companies believe that this strategic partnership will maximize the mutual business value.

ON Semiconductor plans to further increase its global market share by increasing its ownership to 60% by the second half of 2018 and 100% by the first half of 2020. This expanded production capacity will allow ON Semiconductor to further expand its business in response to industry demand, thereby enhancing supply chain flexibility.

“We believe that in order to achieve continued growth at our Aizu 8-inch fab, we must transform into a globally competitive company,” said Kagemasa Magaribuchi, President of Fujitsu Semiconductor. “Our strategic partnership with ON Semiconductor, which offers a broad product portfolio, will enable the Eyes 8-inch fab to maintain its growth momentum going forward,” he said. “We expect the growth of the Eyes 8-inch fab to contribute to the development of the region by maintaining and expanding employment.”

“We have enjoyed a strong and successful partnership with Fujitsu since 2014,” said Keith Jackson, President and CEO of ON Semiconductor. “We believe this partnership with Fujitsu Semiconductor will optimize our capital expenditures for years to come while maintaining our industry-leading manufacturing cost structure. This strategic investment will enable ON Semiconductor to continue to build the production capacity to support our revenue growth and accelerating production needs.”