Company News
On Semiconductor
Imec shows
acquires California
new GaN-on-
Micro Devices
Si FET
architecture
ON Semiconductor and California Micro penetration of CMD’s overall product
Devices have announced the signing of portfolio with market-leading IMEC has presented a simple and
a definitive merger agreement pursuant customers. robust GaN-on-Si double
to which ON Semiconductor will This should enable us to accelerate heterostructure FET (field effect
acquire California Micro Devices (CMD) revenue growth for CMD’s products and transistor) architecture for GaN-on-Si
through a cash tender offer of $4.70 increase market share. We also believe power switching devices. The
per share. CMD’s products and operations will architecture meets the normally-off
Issue VIII 2009
With net cash, cash equivalents benefit from ON Semiconductor’s requirements of power switching
square4
and short-term investments of world-class manufacturing capabilities.” circuits and is characterized by low
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approximately $45 million at the end “California Micro Devices leakage and high breakdown voltage,
of November 2009, the transaction becoming a part of ON Semiconductor both essential parameters to reduce
value of CMD represents an enterprise represents a compelling opportunity the power loss of high-power
value of approximately $63 million for our customers, employees switching applications.
and an equity value of approximately and shareholders,” said Robert High-voltage power devices are
$108 million, based on common Dickinson, president and CEO of CMD. traditionally based on Si-MOSFET
stock outstanding and issued. “To compete successfully in today’s structures. However, for a number of
oasiasemiconductor
The proposed transaction and global marketplace, size and scale are
.eur
related merger agreement have been very important so we are pleased to
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approved by each company’s board of become part of a leading global
directors. company in the semiconductor sector.
9
“The acquisition of California Micro Combining our leading-edge protection
Devices will significantly strengthen our technology with ON Semiconductor’s
offering of application specific world-class operational capabilities,
integrated passive (ASIP) devices to supply chain and global customer and
protect products in the wireless, channel footprint will enable CMD’s
computing and consumer electronics products to better penetrate the applications, Si power devices have
end-markets,” said Keith Jackson, ON mobile, consumer, laptop and lighting reached the intrinsic material limits.
Semiconductor president and CEO. “In end-markets.” GaN-compounds are nowadays the
addition, CMD’s expertise in protection “This acquisition is directly aligned best candidates to replace Si power
solutions for the high brightness LED with both our strategic and financial devices, thanks to their high band
(HBLED) market, as well as their goals,” said Donald Colvin, ON gap (excellent transport properties)
strengths in LC-based EMI Semiconductor executive vice president and their high electrical breakdown
(electromagnetic interference) filtering and CFO. field. However, the cost of GaN power
and low capacitance ESD (electrostatic “The transaction value represents devices is high. GaN-epilayers offer a
discharge) protection, complement our approximately 1.6 times trailing twelve lower cost possibility.
existing portfolio of protection and month sales plus cash. We also believe IMEC obtained a high-breakdown
lighting solutions. ON Semiconductor’s operational voltage of almost 1000V combined
With technology and process strengths will significantly benefit with low on-resistance by growing an
development expertise in ESD and the revenue and margin potential of SiN/AlGaN/GaN/AlGaN double
EMI protection, CMD is highly CMD. Given the significant synergies heterostructure FET structure on a Si
differentiated in the marketplace – as we expect to realize from this substrate.
demonstrated by their strong combination, we anticipate that Within IMEC’s program on GaN-
relationships with leading global the acquisition will be accretive to on-Si technology, there is focus on the
customers across multiple large and earnings per share within the first year development of GaN technology for
growing applications. post the transaction close. We intend both power conversion and solid state
Combined with ON to provide further details on the lighting applications with a goal to
Semiconductor’s global sales channel acquisition and our fourth quarter 2009 lower GaN technology cost. Imec
footprint and effective channels of results on our regularly scheduled invites both manufacturers and
distribution, we expect to be able to quarterly earnings conference call in compound semiconductor industry to
support a broader and deeper February 2010.” join the program.
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