- The transaction is expected to better position onsemi to secure and grow supply of SiC and meet rapidly growing customer demand for SiC-based solutions in the sustainable ecosystem
- Onsemi plans to invest in expanding GTAT’s research and development efforts to advance 150mm and 200mm SiC crystal growth technology
Onsemi has announced that they have entered into a definitive agreement under which onsemi will acquire GTAT for $415 million in cash. The transaction is expected to better position onsemi to secure and grow supply of SiC and meet rapidly growing customer demand for SiC-based solutions in the sustainable ecosystem. This includes EVs, EV charging and energy infrastructure.
They said, ” Combining onsemi’s manufacturing capabilities with GTAT’s technical expertise will accelerate SiC development and position onsemi to better serve customers as the sustainable ecosystem rapidly ramps up over the next decade. This enhanced SiC capability will allow onsemi to assure customers of supply of critical components and to further commercialise intelligent power technologies.”
Onsemi plans to invest in expanding GTAT’s research and development efforts to advance 150mm and 200mm SiC crystal growth technology. It will also invest in the broader SiC supply chain, including Fab capacity and packaging.
Hassane El-Khoury, president and chief executive officer of onsemi said, “This transaction reflects our confidence and stated commitment to meaningfully invest in silicon carbide solutions to support the creation of intelligent power and sensing technologies to help build a sustainable future. We are focused on deepening our leadership and innovation in game-changing technologies that support the automotive and industrial sectors, and GTAT brings outstanding technical capabilities and expertise in developing wafering-ready silicon carbide, which we intend to accelerate and expand to better empower customers in our high-growth end markets. We look forward to welcoming GTAT’s talented employees to the onsemi team and driving innovation together.”
“Today’s announcement marks the start of a new chapter for GTAT and is a testament to the value created by the hard work and strength of our team,” said Greg Knight, president and chief executive officer of GTAT. “onsemi is strategically positioned to scale our capabilities, providing the resources and platform to maximize the potential of our cutting-edge production techniques and ensure we remain on the forefront of advanced crystalline growth.”
Fund the transaction through cash on hand and available capacity under its existing revolving credit facility
Onsemi had previously stated, capital expenditures are expected to be approximately 12 per centof revenue in 2022 and 2023, as onsemi invests to drive differentiation and leadership, including in SiC. The transaction is not expected to impact the company’s 2025 target financial model.
Onsemi intends to fund the transaction through cash on hand and available capacity under its existing revolving credit facility. The company expects the transaction to be marginally dilutive to its non-GAAP earnings per share in the immediate term and to be accretive within one year after close.
Greg Knight, president and chief executive officer of GTAT said, “Today’s announcement marks the start of a new chapter for GTAT and is a testament to the value created by the hard work and strength of our team. onsemi is strategically positioned to scale our capabilities, providing the resources and platform to maximize the potential of our cutting-edge production techniques and ensure we remain on the forefront of advanced crystalline growth.”
