\nFounded in 1994, GTAT has significant experience in crystalline growth, including SiC. SiC is a key material for next-generation semiconductors that provide technical benefits in SiC power switching devices, significantly improving system efficiency in electric vehicles (EVs), EV charging and energy infrastructure.\n<\/p>\n
\nThe transaction is expected to better position onsemi<\/b> to secure and grow supply of SiC and meet rapidly growing customer demand for SiC-based solutions in the sustainable ecosystem, including EVs, EV charging and energy infrastructure. Combining onsemi<\/b>\u2019s manufacturing capabilities with GTAT\u2019s technical expertise will accelerate SiC development and position onsemi<\/b> to better serve customers as the sustainable ecosystem rapidly ramps up over the next decade. This enhanced SiC capability will allow onsemi<\/b> to assure customers of supply of critical components and to further commercialize intelligent power technologies.\n<\/p>\n
\n\u201cThis transaction reflects our confidence and stated commitment to meaningfully invest in silicon carbide solutions to support the creation ofintelligent power and sensing technologies to help build a sustainable future,\u201d said Hassane El-Khoury, president and chief executive officer of onsemi<\/b>. \u201cWe 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\u2019s talented employees to the onsemi<\/b> team and driving innovation together.\u201d\n<\/p>\n
\n\u201cToday\u2019s 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,\u201d said Greg Knight, president and chief executive officer of GTAT. \u201consemi<\/b> 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.\u201d\n<\/p>\n
\nThe acquisition also reinforces onsemi<\/b>\u2019s commitment to make substantial investments in disruptive, high-growth technologies, consistent with the company\u2019s recently announced 2025 target financial model described during its Analyst Day presentation. As onsemi<\/b> previously stated, capital expenditures are expected to be approximately 12% of revenue in 2022 and 2023, as onsemi <\/b>invests to drive differentiation and leadership, including in SiC. The transaction is not expected to impact the company\u2019s 2025 target financial model.\n<\/p>\n
onsemi<\/b> plans to invest in expanding GTAT\u2019s research and development efforts to advance 150mm and 200mm SiC crystal growth technology, while also investing in the broader SiC supply chain, including Fab capacity and packaging.\n<\/p>\n
\nThe transaction, which has been unanimously approved by the Boards of Directors of onsemi<\/b> and GTAT, is expected to close in the first half of 2022. Completion of the transaction is subject to regulatory approvals and other customary closing conditions. Approval of onsemi<\/b>\u2019s stockholders is not required in connection with the proposed transaction.\n<\/p>\n
onsemi<\/b> 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.\n<\/p>\n
About onsemi<\/b><\/p>\n
onsemi<\/b> (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. With a highly differentiated and innovative product portfolio, onsemi<\/b> creates intelligent power and sensing technologies that solve the world\u2019s most complex challenges and leads the way in creating a safer, cleaner, and smarter world. Learn more about onsemi<\/b> at www.onsemi.com<\/a>.\n<\/p>\n About GT Advanced Technologies Inc.<\/b><\/p>\n \nGT Advanced Technologies Inc., through its wholly owned subsidiaries including GTAT Corporation, is headquartered in Hudson, N.H. USA and manufactures SiC and sapphire materials for high-growth markets. SiC materials are fundamental to the accelerated adoption of a new generation of products such as electric vehicles, high-power industrial motors, and telecom infrastructure applications. Sapphire materials are fundamental in advanced optical, mechanical and laser applications, as well as in aerospace\/defense systems. GTAT is a valued supply chain partner in the diverse markets that it serves. For more information about the company, please visit www.gtat.com<\/a>.\n<\/p>\n onsemi<\/i><\/b> and the onsemi<\/b> logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the company references its Web site in this news release, such information on the Web site is not to be incorporated herein.<\/i><\/p>\n Cautions Regarding Forward-Looking Statements<\/b><\/p>\n \nCertain statements in this press release, including, among others, the expected closing of the transactions and the potential effects thereof, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often characterized by the use of words such as \u201cbelieves,\u201d \u201cestimates,\u201d \u201cexpects,\u201d \u201cprojects,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cintends,\u201d \u201cplans,\u201d \u201cshould,\u201d or \u201canticipates,\u201d and similar expressions. All forward-looking statements in this press release are made based on onsemi<\/b>\u2019s current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Among these, such risks and uncertainties include, but are not limited to, the risk that one or more closing conditions to the transaction may not be satisfied or waived, on a timely basis or otherwise, and the risk that the transaction does not close when anticipated, or at all, including the risk that the requisite regulatory approvals may not be obtained. Additional factors that could cause results to differ materially from those projected in the forward-looking statements are contained in onsemi<\/b>\u2019s 2020 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of onsemi<\/b>\u2019s filings with the SEC. onsemi<\/b> assumes no obligation to update such information, except as may be required by law.\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20210825005781\/en\/<\/a><\/span><\/p>\n onsemi<\/b><\/p>\n Media Contacts:<\/span><\/p>\n \nSarah Rockey \nFinsbury Glover Hering for onsemi Investor Contact:<\/span><\/p>\n \nParag Agarwal GTAT<\/b><\/p>\n \nChris Van Veen KEYWORDS:<\/b> United States North America New Hampshire Arizona<\/p>\n INDUSTRY KEYWORDS:<\/b> Technology Automotive Mining\/Minerals Natural Resources Alternative Vehicles\/Fuels Semiconductor Alternative Energy Engineering Energy Automotive Manufacturing Aerospace Telecommunications Manufacturing Internet Environment Mobile\/Wireless Hardware<\/p>\n<\/p>\n
\n
Corporate\/Media Communications
\n
onsemi
\n<\/b>
+1 (602) 244-5190
\n
sarah.rockey@onsemi.com<\/a><\/p>\n
\n<\/b>
onsemi@fgh.com
\n<\/a>
+1 (646) 805-2000\n<\/p>\n
\n
Vice President – Investor Relations & Corporate Development
\n
onsemi
\n<\/b>
+1 (602) 244-3437
\n
investor@onsemi.com<\/a><\/p>\n
\n
Marketing Communications Manager
\n
o: +1 (603) 417-2230
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c: +1 (603) 320-5759
\n
Chris.vanveen@gtat.com<\/a><\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20210825005781\/en\/1169226\/3\/onsemi_logo_no_mark_1920x1080.jpg\"){kind=logo}
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