Thursday, April 6, 2006

ON Semiconductor Buys LSI Fab

Phoenix, Arizona-based ON Semiconductor is buying LSI Logic's Gresham, Oregon wafer fabrication facility in a $105M deal. ON Semiconductor (ONNN) said today that its subsidiary, Semiconductor Components Industries LLC will buy the facility, and has paid LSI Logic $10.5M in a deposit, will pay $79.5M at closing, and the remaining balance 90 days after closing. LSI Logic maintains an 83 acre campus and roughly 500,000 square feet of facility in Gresham. ON Semiconductor said that it will offer employment to "substantially all" of its manufacturing employees at the facility. As part of the deal, LSI Logic will enter a commitment to purchase $200M in wafer supply and test services over the next two years.