ON Semi completes Fairchild acquisition
ON Semiconductor has announced a new organizational structure, which reflects the evolution of its product portfolio to highly differentiated power management, imaging, and analogue solutions from standard products. The new organization is comprised of three reporting units – the Power Solutions Group, headed by Bill Hall, the Analog Solutions Group, headed by Bob Klosterboer, and the Image Sensor Group, headed by Taner Ozcelik. The System Solutions Group has been absorbed in these three reporting units.
“The acquisition of Fairchild is a transformative step in our quest to become the premier supplier of power management and analog semiconductor solutions for a wide range of applications and end-markets,” said Keith Jackson, president and CEO of ON Semiconductor. “Fairchild provides us a platform to aggressively expand our profitability in a highly fragmented industry. With the addition of Fairchild, our industry leading cost structure has further improved in a significant manner and we are now well positioned to generate substantial shareholder value as we integrate operations of the two companies.”
The last step in the process was clearance from the Ministry of Commerce in the People’s Republic of China, and Fairchild was merged with a subsidiary of ON Semi. As a result, Fairchild ceased to be a publicly traded company, its common stock will no longer be listed on NASDAQ, and Fairchild became a wholly owned subsidiary of ON Semiconductor. This marks the end of the Fairchild name, which was originally founded by William Shockley in 1955 and employed the core group that went on to found Intel. The company as bought in 1987 by National Semiconductor, but the name was resurrected in 1997 as an analogue and logic company, adding power capability over the following years.
ON Semiconductor expects to achieve annual cost savings run rate of $160 million by the end of 2017, $200 million by the end of 2018, and $225 million by the end of 2019, based on Fairchild’s 2015 annual results.