U.S. ON Semiconductor to buy East Fishkill fab for $430 million

U.S. chipmaker ON Semiconductor Corp. has agreed to purchase a 300 millimeters (mm) fab located in East Fishkill, New York from peer GlobalFoundries for a total consideration of $430 million.

Of the total investment, $100 million has been paid at the signing of the definitive agreement, and $330 million will be paid at the end of 2022.

After making the final payments, ON Semiconductor will gain full operational control of the fab, and the site's employees will transition to ON Semiconductor.

As part of the deal, GlobalFoundries will manufacture 300 mm wafers for ON Semiconductor until the end of 2022. Closing of the move is subject to regulatory approval and other customary closing conditions.