ON Semiconductor Invests $15.78 million USD to Expand Production at its Wafer Manufacturing Facility in Belgiu

ON Semiconductor Invests $15.78 million USD to Expand Production at its Wafer Manufacturing Facility in Belgium

Production capacity is expected to be increased by approximately 40 percent by early 2011

OUDENAARDE, Belgium – Sept. 10, 2010 – ON Semiconductor (Nasdaq: ONNN) a premier supplier of high performance, energy efficient silicon solutions for green electronics, recently announced plans to expand production capacity at its 6-inch (150mm) wafer manufacturing facility in Oudenaarde, Belgium, by approximately 40 percent with a total equipment investment in 2010 of 12.3 million EUR (or $15.78 million USD). The Belgium factory specializes in the manufacture of application specific high-voltage technologies for the automotive and industrial industry, and in integrated and discrete standard products for a wide range of market segments.

The 12.3 million EUR being invested in additional manufacturing equipment at the Belgium facility is part of the company’s overall plan to maximize its in-house manufacturing operations. The additional production equipment being installed at the Oudenaarde facility will assist ON Semiconductor in meeting the increasing customer demand for its semiconductor components utilized by the automotive and industrial industries. Equipment installation efforts are underway, and are expected to increase production at the Belgium wafer fab by 40 percent by early 2011. The company expects to locally hire additional blue collar and white collar labor in support of the expansion.

“Our customers have had great success in utilizing products fabricated in ON Semiconductor’s Oudenaarde facility in order to gain market share over their competitors,” said Brent Wilson vice president of European manufacturing operations for ON Semiconductor. “We have seen quarter-on-quarter demand increases during the previous four consecutive quarters and the forecast continues to show strong growth. Here in Belgium, the majority of the expansion funds are aimed at the most complex products produced in this facility – which continue to be well received by our customers for new designs.”

ON Semiconductor’s Oudenaarde, Belgium, site employs approximately 500 people. In addition to the manufacturing teams, there are local teams focused on product research and development, IC design, sales and marking for the company’s Automotive, Industrial and Foundry business units, as well as business and support staffs. ON Semiconductor also operates a site in Vilvoorde, Belgium, where an additional 50 automotive business unity employees work.

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