Succession of the business of ON Semiconductor Niigata Corporation to an investment fund
🟦 Onsemi sells Niigata plant to investment fund Mercuria
Onsemi will sell its plant in Niigata Prefecture to an investment fund funded by Japan Development Bank of Japan. The investment fund Mercuria plans to invest more than 20 billion yen to convert the Niigata Plant into a foundry base for power semiconductors. Investment in domestic power semiconductor manufacturing is booming Japan partly due to subsidies from the government.
- Investment in power semiconductors in Japan
- Mitsubishi Electric Fukuyama Plant 130 billion yen
- Fuji Electric Tsugaru Plant: 190 billion yen
- Renesas Kofu Plant: 90 billion yen
🟦 Onsemi’s Fab Writer Strategy
Onsemi had announced that it was considering selling its Niigata plant in 2020. Onsemi has a fab-liter strategy to reduce the number of factories and increase gross margins. The Niigata Plant was established by the former Sanyo Electric (now Panasonic) in 1985 and acquired by Onsemi in 2011 to manufacture the previous generation 200mm wafers. OnSemi plans to sell its fab of the previous generation of 200mm wafers while shifting to 300mm production capacity.
Onsemi sells its Niigata plant of old-generation 200mm wafers to an investment fund as a fablite strategy
It would be good if the horizontal division of labor in power semiconductors would proceed in Japan.