Various Semiconductor (ON Semiconductor) has announced to about $2.4 billion in total, to buy the same feat analog and power of Semiconductor wafer (Fairchild Semiconductor), for the Semiconductor industry in this year's "whole and crazy" add new cases.

ON Semi said to the two companies current total annual revenue of $5 billion to estimate, after the merger of the company will become the second largest supplier in the field of power semiconductor devices, mainly focus ON the automotive, industrial and application domains such as smart mobile phone in the end. Announcing the deal ON Semi President and chief executive officer Keith Jackson said ON a conference call, the main purpose is to promote the company in the field of medium/high power semiconductor technology ability, and expansion of analogy and the whole power chip market territory.

Jackson said: "the two companies in the complementary product line, we can further through across the power range of solutions, strengthen to the customer value proposition and distribution partner."

According to mutual agreement ON Semi to $20 per share in cash for Fairchild, quick stock is the amount in the United States time ON November 17, 12% of closing quotation price premium; The merger is expected to completed in the second quarter of 2016. On Semi and pointed out that after completion of the merger in 18 months, can achieve the effect of the cost savings of $150 million a year.

The news came in the last month, Fairchild is seeking buyers for the company; And ON Semi Jackson reaffirmed that the company like the profits back to shareholders, usually used instead of cash ON hand to buy other companies, but given industry is unprecedented and tide, plus Fairchild also intended to sell, this deal is follow.

"The industry competition situation is rapidly changing," Jackson said: "the whole and will significantly change our competitive advantage; since there is a process, but there is one company look set to be sold, we think from the point of competition is should to deal, rather than just wait." His agitation and predicted that the semiconductor industry consolidation will continue to happen, so long as the financial market interest rates remain at a relatively low level, the overall semiconductor industry growth momentum is also low, there will be more consolidation.

Fairchild semiconductor industry is one of the oldest companies, its founding can be traced back to 1957 (reference); In 1987, Fairchild once by National Semiconductor (National Semiconductor) behemoth, but later became an independent company in 1997.