LSI Logic Corporation (NYSE: LSI) today announced it has completed the sale of its Gresham, Oregon semiconductor manufacturing facility to Semiconductor Components Industries, LLC, the primary operating subsidiary of ON Semiconductor Corporation (Nasdaq: ONNN), for $105 million, under terms of a definitive agreement executed on April 5, 2006.
The facility purchased by the ON Semiconductor subsidiary consists of a campus measuring approximately 83 acres, multiple buildings with approximately 500,000 square feet of floor space, including approximately 98,000 square feet of cleanroom space, and a 200 millimeter-capable toolset and equipment that can produce 18,000 8-inch wafers per month.
Related to the transaction, the ON Semiconductor subsidiary has entered into additional agreements with LSI, including a multi-year wafer supply and test agreement, intellectual property license agreement, transition services agreement and a facilities use agreement. The ON Semiconductor subsidiary has also hired substantially all of the LSI manufacturing employees based at the Gresham site, with the remaining non-manufacturing workforce continuing their employment with LSI.
In September, 2005, LSI adopted a fabless manufacturing strategy intended to better serve its global customer base, reduce production costs and adopt leading-edge process technologies. The closing of this transaction completes the company’s transition to a fully fabless model while providing uninterrupted service to customers.
LSI has received approximately $90 million in proceeds to date, with the balance due within 90 days of closing according to the agreement.
Editor's Notes:
1. All LSI Logic news releases (financial, acquisitions, manufacturing, products, technology etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsi.com.
2. The LSI Logic logo design is a registered trademark of LSI Logic Corporation.
3. All other brand or product names may be trademarks or registered trademarks of their respective companies.
The facility purchased by the ON Semiconductor subsidiary consists of a campus measuring approximately 83 acres, multiple buildings with approximately 500,000 square feet of floor space, including approximately 98,000 square feet of cleanroom space, and a 200 millimeter-capable toolset and equipment that can produce 18,000 8-inch wafers per month.
Related to the transaction, the ON Semiconductor subsidiary has entered into additional agreements with LSI, including a multi-year wafer supply and test agreement, intellectual property license agreement, transition services agreement and a facilities use agreement. The ON Semiconductor subsidiary has also hired substantially all of the LSI manufacturing employees based at the Gresham site, with the remaining non-manufacturing workforce continuing their employment with LSI.
In September, 2005, LSI adopted a fabless manufacturing strategy intended to better serve its global customer base, reduce production costs and adopt leading-edge process technologies. The closing of this transaction completes the company’s transition to a fully fabless model while providing uninterrupted service to customers.
LSI has received approximately $90 million in proceeds to date, with the balance due within 90 days of closing according to the agreement.
Editor's Notes:
1. All LSI Logic news releases (financial, acquisitions, manufacturing, products, technology etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsi.com.
2. The LSI Logic logo design is a registered trademark of LSI Logic Corporation.
3. All other brand or product names may be trademarks or registered trademarks of their respective companies.
