Fairchild Semiconductor to be sold to rival chip maker
Fairchild Semiconductor has agreed to be bought by a fellow chip maker, ON Semiconductor, for $2.4 billion in cash.
San Jose, Calif.-based Fairchild, which has about 650 employees in Maine, announced a month ago it was looking for a buyer, according to the Portland Press Herald.
The Wall Street Journal reported that ON CEO Keith Jackson said the acquisition will bring together two companies with complementary product lines in a rapidly consolidating semiconductor industry. The acquisition will immediately add to ON’s earnings by increasing its presence in the industrial, automotive and smartphone markets, the company said.
The Wall Street Journal reported that Fairchild, which has operations in South Portland, has struggled in recent quarters due to lower demand from the telecom sector, and mobile and appliance customers. The company sells components used in cars, smartphones, appliances and other products
ON said it anticipates annual cost savings of $150 million within 18 months after the transaction’s close, expected in the second quarter of 2016.
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