The recent $2.4bn acquisition of Fairchild Semiconductor marked the end of the company’s second life as a power company as the company has been divided up by ON Semi. This has created a major player in power that is looking to take on market leader Infineon Technologies.
“What we think we have done is gone from a nobody in power to a strong number two so we changed the name of the group as 75% of it is now power, that’s $1.7bn,” said Bill Hall, Executive Vice President of the Power Solution Group. “We have about half of ON Semi’s revenue and that gives ON Semi a different meaning to our customers and the market.”
“We are the centre of the universe with the power switching so when a designer starts the project they look at what devices they need to use and build the rest of the stuff around it,” he said. ”For example, a laptop maker wanting the best in class product starts with the battery and moves to the adaptor to make the adaptor small and add a battery so they have extra space for the rest of the design.”
Fittingly for a deal around Fairchild Semiconductor, there is a lot of industry history. “I’m an ex-Fairchild guy and so is our CEO Keith Jackson – we worked together there in the 1980s. There was no better fit to what ON Semi already had, so from a business standpoint it made total sense – yes we have friends there and history there but it was business led.”
“Unlike other acquisitions where we left them alone for a couple of years, with this one, on day one we integrated them at the division level,” said Hall. “Below me I have five divisions, with business units some headed by Fairchild guys, and some by ON guys, so we can quickly be complementary so we are not going