ON Semiconductor has put another fab up for sale are resulting showing reducing losses.
The sale of the plant in Niigata follows a similar deal for its fab in Oudenaarde, Belgium announced in February
Like the former AMI fab, the Niigata facility is an automotive qualified facility which meets the IATF 16949 global industry standard for quality management. The two co-located 200mm-capable wafer fabs have 215,000 square feet of clean room space on a 40 acre campus with 1.1 million square feet of building space acquired from Sanyo.
The company will begin searching for strategic buyers to enter into a mutually beneficial arrangement that is expected to facilitate an orderly transition of products from its facility in Niigata to other facilities in its network, including the 300mm fab in East Fishkill, New York.
ON Semi says it remains committed to growing its presence in Japan, adding a large eight-inch wafer fab in Aizu to its manufacturing footprint.
“This announcement comes on the heels of our announcement in February regarding our plan to transition production from our 6-inch automotive-centric fab in Belgium,” said Keith Jackson, CEO of ON Semi. “With manufacturing optimization plans we've announced thus far, we expect to see significant improvement in our manufacturing cost structure and gross margin. Our 300mm manufacturing capability in the East Fishkill fab has afforded us significant flexibility which has enabled us to optimize our network.
“During the second quarter, we started our first 300mm wafer production at the East Fishkill fab. We are currently sampling our 300-millimeter products to customers, and we expect to recognize our first 300-millimeter revenue in the third quarter,” he said. “We are very pleased with our accelerated progress in ramping our 300-millimeter manufacturing processes. The yields have been spectacular and we expect to see a meaningful positive impact on our gross margins as our 300-millimeter manufacturing ramps up in the coming years.”
The 300mm fab can produce 20