ON Semiconductor sells Niigata factory in Japan to JS Foundry K.K

ON Semiconductor continues to execute its "fab-liter" strategy and has completed the sale of its Niigata factory in Japan to JS Foundry K.K. A fab-liter strategy aims to expand a company's gross margin and predictably improve its financial performance by reducing fixed costs. JS Foundry K.K. and Sangyo Sosei Advisory Corporation Inc. (SSA) jointly established JS Foundry K.K. as a Japanese foundry to supply semiconductors to Japanese customers.

ON Semiconductor President and CEO Hassane El-Khoury said in a release: "After an intensive search for a buyer over the past two years, we are confident that we have found the right partner for JS Foundry K.K. "When making decisions about our manufacturing structure and facilities, we consider the well-being of our employees and seek to create a smooth transition for all involved. We look forward to a bright future for JS Foundry K.K. and we thank them for their hard work and commitment to ON Semiconductor." "

JS Foundry K.K. is planning to use the project as the basis for its new foundry business in Japan. To ensure continued supply to existing customers, ON Semiconductor has entered into a wafer supply agreement with the new owner.