On Semiconductor Corporation · NASDAQ:ON
On Semiconductor — Merger or Acquisition (April 2019)
6 slides from On Semiconductor's merger presentation, Apr 22, 2019
Slide 1: Planned Acquisition of 300mm East Fishkill, NY Fab from GlobalFoundries
PLANNED Acquisition of 300mm East Fishkill, NY FAB from GlobalFoundries April 22, 2019 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements related to the consummation and benefits of the acquisition by ON Semico
Slide 3: Strategic rationale
Strategic rationale Attractive deal structure Allows ON Semiconductor to increase loadings in the fab in a measured manner Reduces risk of underutilization burden on income statement Accelerates progress towards target financial model Highly competitive manufacturing cost structure 300mm wafer produ
Slide 4: 300mm fab addition will add significant capacity
300mm fab addition will add significant capacity Building space 212k sqft of fab clean room and 70k sqft of backend clean room space Total EXPECTED investment $700m (Includes total purchase price of $430m) over several years Revenue potential $2.2 billion per year Start of ON’s production 2020 Full
Slide 5: Transaction Summary
Transaction Summary Purchase price $430M Total Consideration ($100M at signing, followed by $330M at end of 2022) EXPECTED Capex Savings Approximately $1B over several years EXPECTED Financial Impact Accelerates progress towards target model Financing Cash on hand and revolving line of credit other
Slide 6: Anticipated Deal Timeline
ANTICIPATED Deal Timeline Q2 2019 ON Semiconductor and GlobalFoundries sign definitive agreement for ON Semiconductor to Acquire 300mm East Fishkill fab 2020 GlobalFoudries to manufacture wafers for ON Semiconductor – ON Semiconductor begins production ramp while GlobalFoundries begins to ramp down
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