LSI to Sell Gresham Fab to ON Semiconductor for $105 Million

LSI Logic Corporation announced that it has signed a definitive agreement to sell its Gresham, Oregon semiconductor manufacturing facility to ON Semiconductor Corporation's primary operating subsidiary, Semiconductor Components Industries, LLC, for approximately $105 million in cash.

The agreement calls for ON Semiconductor's subsidiary to purchase the 83 acre wafer fabrication facility campus, consisting of multiple buildings with approximately 500,000 square feet of floor space, including an estimated 98,000 square feet of cleanroom space. The assets to be purchased also include a 200 millimeter-capable toolset and equipment that can produce 18,000 8-inch wafers per month.

Under the terms of the agreement, ON Semiconductor's subsidiary will offer employment to substantially all of the LSI manufacturing employees based at the Gresham site, with the remaining non-manufacturing workforce expected to continue their employment with LSI. ON Semiconductor's subsidiary will also enter 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.

"We are very pleased to have secured a buyer interested in both the advanced manufacturing capabilities and the experienced workforce associated with our Gresham facility," said Abhi Talwalkar, president and chief executive officer, LSI Logic. "As a result of today's agreement, we anticipate providing uninterrupted service to customers while enhancing LSI competitiveness as we continue to execute our fabless manufacturing strategy."